PRGX Global (PRGX) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	PRGX GLOBAL, INC.
Entity Central Index Key	1,007,330
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year Focus	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,859,734

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 33,923	$ 42,988	$ 104,344	$ 122,870
Operating expenses:
Cost of revenue	24,387	28,681	73,085	87,457
Selling, general and administrative expenses	8,487	10,492	26,043	31,505
Depreciation of property and equipment	1,262	1,428	3,858	4,696
Amortization of intangible assets	517	895	2,017	2,700
Total operating expenses	34,653	41,496	105,003	126,358
Operating (loss) income	(730)	1,492	(659)	(3,488)
Foreign currency transaction losses on short-term intercompany balances	654	1,221	1,930	1,073
Interest (income), net	(8)	(44)	(103)	(33)
Other loss	1,612	0	1,612	0
(Loss) income before income taxes	(2,988)	315	(4,098)	(4,528)
Income tax expense	421	554	1,172	853
Net loss	$ (3,409)	$ (239)	$ (5,270)	$ (5,381)
Basic loss per common share (Note B) (usd per share)	$ (0.14)	$ (0.01)	$ (0.20)	$ (0.18)
Diluted loss per common share (Note B) (usd per share)	$ (0.14)	$ (0.01)	$ (0.20)	$ (0.18)
Weighted-average common shares outstanding (Note B):
Basic (shares)	25,167	27,744	26,015	29,203
Diluted (shares)	25,167	27,744	26,015	29,203

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net loss	$ (3,409)	$ (239)	$ (5,270)	$ (5,381)
Foreign currency translation adjustments	(844)	(619)	(692)	(112)
Comprehensive loss	$ (4,253)	$ (858)	$ (5,962)	$ (5,493)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents (Note E)	$ 15,673	$ 25,735
Restricted cash	98	53
Contract receivables, less allowances of $1,752 in 2015 and $2,243 in 2014:
Billed	24,255	32,373
Unbilled	1,288	2,809
Receivables Net	25,543	35,182
Employee advances and miscellaneous receivables, less allowances of $834 in 2015 and $692 in 2014	1,781	1,993
Total receivables	27,324	37,175
Prepaid expenses and other current assets	3,141	3,421
Total current assets	46,236	66,384
Property and equipment	58,333	56,174
Less accumulated depreciation and amortization	(46,993)	(43,954)
Property and equipment, net	11,340	12,220
Goodwill	11,589	13,036
Intangible assets, less accumulated amortization of $35,163 in 2015 and $33,973 in 2014	7,131	9,439
Noncurrent portion of unbilled receivables	825	1,196
Other assets	828	507
Total assets	77,949	102,782
Current liabilities:
Accounts payable and accrued expenses	6,437	7,397
Accrued payroll and related expenses	12,103	15,415
Refund liabilities	4,953	5,393
Deferred revenue	1,094	2,173
Other current liabilities	254	0
Total current liabilities	24,841	30,378
Noncurrent refund liabilities	716	857
Other long-term liabilities	1,218	561
Total liabilities	$ 26,775	$ 31,796
Commitments and contingencies (Note H)
Shareholders’ equity (Note B):
Common stock, no par value; $.01 stated value per share. Authorized 50,000,000 shares; 22,872,100 shares issued and outstanding at September 30, 2015 and 26,762,861 shares issued and outstanding at December 31, 2014	$ 229	$ 268
Additional paid-in capital	576,256	590,067
Accumulated deficit	(526,182)	(520,912)
Accumulated other comprehensive income	871	1,563
Total shareholders’ equity	51,174	70,986
Total liabilities and shareholders’ equity	$ 77,949	$ 102,782

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowances for contract receivables	$ 1,752	$ 2,243
Allowances for employee advances and miscellaneous receivables	834	692
Accumulated amortization on intangible assets	$ 35,163	$ 33,973
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, stated value per share (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	50,000,000	50,000,000
Common stock, shares issued (shares)	22,872,100	26,762,861
Common stock, shares outstanding (shares)	22,872,100	26,762,861

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (5,270)	$ (5,381)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,875	7,396
Amortization of deferred loan costs	(100)	67
Stock-based compensation expense	4,530	3,409
Loss/gain on sale of assets/investments	1,561	0
Deferred income taxes	61	(933)
Foreign currency transaction losses on short-term intercompany balances	1,930	1,073
Changes in operating assets and liabilities:
Restricted cash	(45)	(64)
Billed receivables	6,843	(2,762)
Unbilled receivables	1,815	7,921
Prepaid expenses and other current assets	211	541
Other assets	(40)	15
Accounts payable and accrued expenses	(822)	(2,871)
Accrued payroll and related expenses	(2,861)	(445)
Refund liabilities	(581)	(1,058)
Deferred revenue	(645)	(265)
Noncurrent compensation obligations	0	414
Other long-term liabilities	(99)	73
Net cash provided by operating activities	12,363	7,130
Cash flows from investing activities:
Purchases of property and equipment, net of disposal proceeds	(3,169)	(3,574)
Net cash used in investing activities	(3,169)	(3,574)
Cash flows from financing activities:
Payment of deferred loan costs	0	(104)
Restricted stock repurchased from employees for withholding taxes	(311)	(568)
Proceeds from option exercises	45	2,790
Payments of deferred acquisition consideration	0	(2,208)
Repurchase of common stock	(17,261)	(20,000)
Net cash used in financing activities	(17,527)	(20,090)
Effect of exchange rates on cash and cash equivalents	(1,729)	(873)
Net decrease in cash and cash equivalents	(10,062)	(17,407)
Cash and cash equivalents at beginning of period	25,735	43,700
Cash and cash equivalents at end of period	15,673	26,293
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	51	80
Cash paid during the period for income taxes, net of refunds received	$ 734	$ 2,405

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) of PRGX Global, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three -month and nine -month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . Except as otherwise indicated or unless the context otherwise requires, “PRGX,” “we,” “us,” “our” and the “Company” refer to PRGX Global, Inc. and its subsidiaries. For further information, refer to the Consolidated Financial Statements and Footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2014 . New Accounting Standards A summary of the new accounting standards issued by the Financial Accounting Standards Board (“FASB”) and included in the Accounting Standards Codification (“ASC”) that apply to PRGX is set forth below: FASB ASC Update No. 2015-15. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, Interest - Imputations of Interest (Subtopic 835-30). The amendments in this update clarify the stance by the SEC allowing an entity to defer and present debt issuance costs for a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We are currently evaluating the impact of ASU 2015-15 on our consolidated financial statements. FASB ASC Update No. 2015-05. In April 2015, the FASB issued Accounting Standards Update 2015-05 , Goodwill and Other - Internal - Use Software (Subtopic 350-40). The amendments in this update provide guidance about whether a cloud computing arrangement includes a software license. Specifically the amendment states that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments in this update are effective for those annual periods beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-05 on our consolidated financial statements. FASB ASC Update No. 2015-03. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”). ASU 2015-03 simplifies presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual periods beginning after December 15, 2015 with early adoption permitted. The guidance also requires retrospective application to all prior periods presented. We are currently evaluating the impact of ASU 2015-03 on our consolidated financial statements. FASB ASC Update No. 2015-02. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810). The amendments in this update revise the consolidation model for all entities. Specifically the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities. 2. Eliminate the presumption that a general partner should consolidate a limited partnership. 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments in this update are effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-02 on our consolidated financial statements. FASB ASC Update No. 2015-01. In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20). This update eliminates the concept of extraordinary items and their use in financial statements and corresponding disclosure. The amendments in this update are effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-01 on our consolidated financial statements. FASB ASC Update No. 2014-15. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and related disclosure requirements. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 with early adoption permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial statements. FASB ASC Update No. 2014-09. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the transferring entity expects to be entitled in exchange for those goods or services. ASU 2014-09 allows for adoption using either of two methods; retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of application recognized at the date of initial adoption. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share The following tables set forth the computations of basic and diluted loss per common share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, Basic loss per common share: 2015 2014 2015 2014 Numerator: Net loss $ (3,409 ) $ (239 ) $ (5,270 ) $ (5,381 ) Denominator: Weighted-average common shares outstanding 25,167 27,744 26,015 29,203 Basic loss per common share $ (0.14 ) $ (0.01 ) $ (0.20 ) $ (0.18 ) Three Months Ended September 30, Nine Months Ended September 30, Diluted loss per common share: 2015 2014 2015 2014 Numerator: Net loss $ (3,409 ) $ (239 ) $ (5,270 ) $ (5,381 ) Denominator: Weighted-average common shares outstanding 25,167 27,744 26,015 29,203 Incremental shares from stock-based compensation plans — — — — Denominator for diluted loss per common share 25,167 27,744 26,015 29,203 Diluted loss per common share $ (0.14 ) $ (0.01 ) $ (0.20 ) $ (0.18 ) For the three and nine months ended September 30, 2015 , weighted-average common shares outstanding excludes from the computation of diluted earnings (loss) per common share antidilutive shares underlying options that totaled 3.6 million shares. For the three and nine months ended September 30, 2014 , weighted-average common shares outstanding excludes from the computation of diluted earnings (loss) per common share antidilutive shares underlying options that totaled 3.8 million shares and antidilutive Performance Units related to the Company's 2006 Management Incentive Plan that totaled less than 0.1 million shares. As a result of the net loss for the three months ended September 30, 2015 and September 30, 2014 and the nine months ended September 30, 2015 and September 30, 2014 , all shares underlying stock options and Performance Units were considered antidilutive for such periods. The number of common shares used in the basic and diluted earnings (loss) per common share computations include nonvested restricted shares of 0.4 million and 0.6 million for the three and nine months ended September 30, 2015 and 2014 , respectively, and nonvested restricted share units that we consider to be participating securities of 2.6 million and 0.1 million for the three and nine months ended September 30, 2015 and 2014 , respectively. We repurchased 1,735,277 shares of our common stock during the three months ended September 30, 2015 for $6.9 million , and 3,912,037 shares of our common stock during the nine months ended September 30, 2015 for $17.3 million . We repurchased 1,413,017 shares of our common stock during the three months ended September 30, 2014 for $9.0 million , and 3,117,277 shares of our common stock during the nine months ended September 30, 2014 for $20.0 million . Pursuant to exercises of outstanding stock options, we issued no shares of our common stock in the three months ended September 30, 2015 and 12,863 shares of our common stock having a value of less than $0.1 million in the nine months ended September 30, 2015 . We issued 105,478 shares of our common stock having a value of less than $0.5 million in the three months ended September 30, 2014 and 710,063 shares of our common stock having a value of $2.8 million in the nine months ended September 30, 2014 . Stock option exercises during the nine-month period ended September 30, 2014 primarily consisted of exercises by a former executive officer of the Company. In partial satisfaction of a business acquisition obligation, we issued 187,620 shares of our common stock having a value of $1.3 million in the nine months ended September 30, 2014 . There were no shares issued to satisfy business acquisition obligations in the nine months ended September 30, 2015 .

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company currently has two stock-based compensation plans: (1) the 2006 Management Incentive Plan (“2006 MIP”) and (2) the 2008 Equity Incentive Plan (“2008 EIP”) (collectively, the “Plans”). We describe the Plans in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2014 . For all periods presented herein, awards outside the Plans are referred to as inducement awards. 2008 EIP Awards and Inducement Awards Stock options granted under the 2008 EIP generally have a term of seven years and vest in equal annual increments over the vesting period, which typically is three years for employees and one year for directors. The following table summarizes stock option grants during the nine months ended September 30, 2015 and 2014 : Grantee Type # of Options Granted Vesting Period Weighted Average Exercise Price Weighted Average Grant Date Fair Value 2015 Director 249,273 1 year or less $ 4.49 $ 2.44 Director 17,092 3 years $ 3.99 $ 1.33 Employee inducements (1) 135,000 3 years $ 5.51 $ 1.42 2014 Director 51,276 1 year or less $ 6.45 $ 1.89 Employee group (2) 1,480,000 3 years $ 6.99 $ 1.81 Employee inducements (3) 270,000 3 years $ 6.64 $ 1.71 (1) The Company granted non-qualified stock options outside its existing stock-based compensation plans in the first nine months of 2015 to three employees in connection with the employees joining the Company. (2) The exercise price for these options is $6.36 for the options that vested on June 27, 2015, $6.99 for the options that vest on June 27, 2016 and $7.63 for the options that vest on June 27, 2017. (3) The Company granted non-qualified stock options outside its existing stock-based compensation plans in the third quarter of 2014 to two executive officers in connection with the employees joining the Company. The weighted average exercise price for these options is calculated based on an exercise price of $6.04 for the options that vested on September 11, 2015, $6.64 for the options that vest on September 11, 2016 and $7.24 for the options that vest on September 11, 2017. Nonvested stock awards, including both restricted stock and restricted stock units, granted under the 2008 EIP generally are nontransferable until vesting and the holders are entitled to receive dividends with respect to the nonvested shares. Prior to vesting, the grantees of restricted stock are entitled to vote the shares, but the grantees of restricted stock units are not entitled to vote the shares. Generally, nonvested stock awards with time-based vesting criteria vest in equal annual increments over the vesting period, which typically is three years for employees and one year for directors. Nonvested stock awards with performance-based vesting criteria vest in accordance with specific performance criteria associated with the awards. The following table summarizes nonvested stock awards granted during the nine months ended September 30, 2015 and 2014 : Grantee Type # of Shares Granted Vesting Period Weighted Average Grant Date Fair Value 2015 Director 4,273 1 year or less $ 4.02 Director 17,092 3 years $ 3.99 Employee group (1) 2,533,333 2 years $ 3.99 Employee inducements (2) 10,000 3 years $ 5.29 2014 Director group 51,276 1 year or less $ 6.45 Employee group 120,000 3 years $ 6.36 Employee inducements (3) 70,000 3 years $ 6.04 (1) The Company granted nonvested performance-based stock awards (restricted stock units) in the first quarter of 2015 to eight executive officers totaling 1,325,000 units. During the third quarter of 2015, the Company issued 1,208,333 units to key employees. (2) The Company granted nonvested stock awards (restricted stock) outside its existing stock-based compensation plans in the first quarter of 2015 to two employees in connection with the employees joining the Company. (3) The Company granted nonvested stock awards (restricted stock) outside its existing stock-based compensation plans in the third quarter of 2014 to two executive officers in connection with the employees joining the Company. 2006 MIP Performance Units On June 19, 2012, seven executive officers of the Company were granted 154,264 Performance Units under the 2006 MIP, comprising all of the then remaining available awards under the 2006 MIP. The awards had an aggregate grant date fair value of $1.2 million and vest ratably over three years. Upon vesting, the Performance Units were settled by the issuance of Company common stock equal to 60% of the number of Performance Units being settled and the payment of cash in an amount equal to 40% of the fair market value of that number of shares of common stock equal to the number of Performance Units being settled. During the nine months ended September 30, 2015 , an aggregate of 16,530 Performance Units were settled, which resulted in the issuance of 9,918 shares of common stock and cash payments of less than $0.1 million . There were no shares issued during the third quarter of 2015 in settlement of Performance Units and 16,526 shares issued during the third quarter of 2014 in settlement of Performance Units. Since the June 19, 2012 grant date to September 30, 2015, an aggregate of 137,740 Performance Units were settled by two current executive officers and four former executive officers, and 16,524 Performance Units were forfeited by one former executive officer and currently are available to be granted. Such settlements resulted in the issuance of 79,356 shares of common stock and cash payments totaling $0.3 million . As of September 30, 2015 , no Performance Units were outstanding. Performance-Based Restricted Stock Units On March 30, 2015, eight executive officers of the Company were granted 1,325,000 performance-based restricted stock units (“PBUs”) under the 2008 EIP. Upon vesting, the PBUs will be settled by the issuance of Company common stock equal to 50% of the number of PBUs being settled and the payment of cash in an amount equal to 50% of the fair market value of that number of shares of common stock equal to the number of PBUs being settled. The PBUs vest and become payable based on the cumulative adjusted EBITDA that the Company (excluding the Healthcare Claims Recovery Audit business) achieves for the two -year performance period ending December 31, 2016. At the threshold performance level, 35% of the PBUs will become vested and payable; at the target performance level, 100% of the PBUs will become vested and payable; and at the maximum performance level, 200% of the PBUs will become vested and payable. If performance falls between the stated performance levels, the percentage of PBUs that shall become vested and payable will be based on straight line interpolation between such stated performance levels (although the PBUs may not become vested and payable for more than 200% of the PBUs and no PBUs shall become vested and payable if performance does not equal or exceed the threshold performance level). On September 28, 2015, certain employees of the Company were granted 1,208,333 PBUs under the 2008 EIP. Upon vesting, the PBUs will be settled by the issuance of Company common stock equal to 25% of the number of PBUs being settled and the payment of cash in an amount equal to 75% of the fair market value of that number of shares of common stock equal to the number of PBUs being settled. The PBUs vest and become payable based on the cumulative adjusted EBITDA that the Company (excluding the Healthcare Claims Recovery Audit business) achieves for the two -year performance period ending December 31, 2016. At the threshold performance level, 35% of the PBUs will become vested and payable and at the target performance level, 100% of the PBUs will become vested and payable. If performance falls between the stated performance levels, the percentage of PBUs that shall become vested and payable will be based on straight line interpolation between such stated performance levels (although the PBUs may not become vested and payable for more than 100% of the PBUs and no PBUs shall become vested and payable if performance does not equal or exceed the threshold performance level). Selling, general and administrative expenses for the three months ended September 30, 2015 and 2014 include $1.4 million related to stock-based compensation charges. Selling, general and administrative expenses for the nine months ended September 30, 2015 and 2014 include $ 4.5 million and $ 3.4 million , respectively, related to stock-based compensation charges. At September 30, 2015 , there was $11.2 million of unrecognized stock-based compensation expense related to stock options, restricted stock awards and restricted stock unit awards, which we expect to recognize over a weighted-average period of 1.17 years. The unrecognized stock-based compensation expense related to restricted stock unit awards with performance vesting criteria is based on our estimate of both the number of shares of the Company's common stock that will ultimately be issued and cash payments that will be made when the restricted stock units are settled.

Operating Segments and Related

Operating Segments and Related Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Operating Segments and Related Information	Operating Segments and Related Information We conduct our operations through the following four reportable segments: Recovery Audit Services – Americas represents recovery audit services (other than Healthcare Claims Recovery Audit services) provided in the United States of America (“U.S.”), Canada and Latin America. Recovery Audit Services – Europe/Asia-Pacific represents recovery audit services (other than Healthcare Claims Recovery Audit services) provided in Europe, Asia and the Pacific region. Adjacent Services represents data transformation, data analytics and associated advisory services. Healthcare Claims Recovery Audit Services represents recovery audit services for healthcare claims, which consist primarily of services provided under subcontracts related to the Medicare Recovery Audit Contractor program. Additionally, Corporate Support includes the unallocated portion of corporate selling, general and administrative expenses not specifically attributable to the four reportable segments. We evaluate the performance of our reportable segments based upon revenue and measures of profit or loss we refer to as EBITDA and Adjusted EBITDA. We define Adjusted EBITDA as earnings from continuing operations before interest and taxes (“EBIT”), adjusted for depreciation and amortization (“EBITDA”), and then further adjusted for unusual and other significant items that management views as distorting the operating results of the various segments from period to period. Such adjustments include restructuring charges, stock-based compensation, bargain purchase gains, acquisition-related charges and benefits (acquisition transaction costs, acquisition obligations classified as compensation, and fair value adjustments to acquisition-related contingent consideration), tangible and intangible asset impairment charges, certain litigation costs and litigation settlements, certain severance charges and foreign currency transaction gains and losses on short-term intercompany balances viewed by management as individually or collectively significant. We do not have any inter-segment revenue. Segment information for the three and nine months ended September 30, 2015 and 2014 (in thousands) is as follows: Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Three Months Ended September 30, 2015 Revenue $ 23,981 $ 8,052 $ 1,332 $ 558 $ — $ 33,923 Net loss $ (3,409 ) Income tax expense 421 Interest income, net (8 ) EBIT $ 5,255 $ 365 $ (2,373 ) $ (532 ) $ (5,711 ) $ (2,996 ) Depreciation of property and equipment 947 148 160 7 — 1,262 Amortization of intangible assets 437 47 33 — — 517 EBITDA $ 6,639 $ 560 $ (2,180 ) $ (525 ) $ (5,711 ) $ (1,217 ) Foreign currency transaction (gains) losses on short-term intercompany balances 393 287 (714 ) — 688 654 Transformation severance and related expenses 101 — — 472 272 845 Loss on sale/disposal of assets — — 1,612 — — 1,612 Stock-based compensation — — — — 1,381 1,381 Adjusted EBITDA $ 7,133 $ 847 $ (1,282 ) $ (53 ) $ (3,370 ) $ 3,275 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Three Months Ended September 30, 2014 Revenue $ 28,550 $ 10,708 $ 3,586 $ 144 $ — $ 42,988 Net loss $ (239 ) Income tax expense 554 Interest income, net (44 ) EBIT $ 7,155 $ (151 ) $ (265 ) $ (1,133 ) $ (5,335 ) $ 271 Depreciation of property and equipment 1,111 150 145 22 — 1,428 Amortization of intangible assets 500 299 96 — — 895 EBITDA $ 8,766 $ 298 $ (24 ) $ (1,111 ) $ (5,335 ) $ 2,594 Foreign currency transaction (gains) losses on short-term intercompany balances 208 1,192 — — (179 ) 1,221 Transformation severance and related expenses 44 7 18 26 318 413 Stock-based compensation — — — — 1,405 1,405 Adjusted EBITDA $ 9,018 $ 1,497 $ (6 ) $ (1,085 ) $ (3,791 ) $ 5,633 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Nine Months Ended September 30, 2015 Revenue $ 71,748 $ 27,307 $ 4,290 $ 999 $ — $ 104,344 Net loss $ (5,270 ) Income tax expense 1,172 Interest income, net (103 ) EBIT $ 15,838 $ 1,719 $ (5,019 ) $ (1,961 ) $ (14,778 ) $ (4,201 ) Depreciation of property and equipment 2,895 454 479 30 — 3,858 Amortization of intangible assets 1,319 600 98 — — 2,017 EBITDA $ 20,052 $ 2,773 $ (4,442 ) $ (1,931 ) $ (14,778 ) $ 1,674 Foreign currency transaction (gains) losses on short-term intercompany balances 651 1,359 7 — (87 ) 1,930 Transformation severance and related expenses 265 268 30 683 308 1,554 Loss on sale/disposal of assets — — 1,612 — — 1,612 Stock-based compensation — — — — 4,530 4,530 Adjusted EBITDA $ 20,968 $ 4,400 $ (2,793 ) $ (1,248 ) $ (10,027 ) $ 11,300 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Nine Months Ended September 30, 2014 Revenue $ 80,377 $ 32,792 $ 8,150 $ 1,551 $ — $ 122,870 Net loss $ (5,381 ) Income tax expense 853 Interest income, net (33 ) EBIT $ 16,632 $ 1,309 $ (3,607 ) $ (4,785 ) $ (14,110 ) $ (4,561 ) Depreciation of property and equipment 3,612 445 463 176 — 4,696 Amortization of intangible assets 1,501 911 288 — — 2,700 EBITDA $ 21,745 $ 2,665 $ (2,856 ) $ (4,609 ) $ (14,110 ) $ 2,835 Foreign currency transaction (gains) losses on short-term intercompany balances 164 1,079 — — (170 ) 1,073 Acquisition-related charges — — 249 — — 249 Transformation severance and related expenses 510 569 396 431 446 2,352 Stock-based compensation — — — — 3,409 3,409 Adjusted EBITDA $ 22,419 $ 4,313 $ (2,211 ) $ (4,178 ) $ (10,425 ) $ 9,918

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less from date of purchase. We place our temporary cash investments with high credit quality financial institutions. At times, certain investments may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit or otherwise may not be covered by FDIC insurance. Some of our cash and cash equivalents are held at banks in jurisdictions outside the U.S. that have restrictions on transferring such assets outside of these countries on a temporary or permanent basis. Such restricted net assets are not significant in comparison to our consolidated net assets. Our cash and cash equivalents included short-term investments of approximately $3.7 million as of September 30, 2015 and $12.2 million as of December 31, 2014 , of which approximately $2.4 million and $2.5 million , respectively, were held at banks outside of the United States, primarily in Brazil and Canada.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt On January 19, 2010, we entered into a four -year revolving credit and term loan agreement (the “2010 Credit Agreement”) with SunTrust Bank (“SunTrust”). Subsequent modifications of the 2010 Credit Agreement were entered into with SunTrust. Most recently, on December 23, 2014, we entered into an amended and restated revolving credit agreement (the “Credit Facility”) with SunTrust. The Credit Facility, and provisions of the 2010 Credit Agreement where applicable, is guaranteed by the Company and all of its material domestic subsidiaries and secured by substantially all of the assets of the Company. The amount available for borrowing under the Credit Facility is $20.0 million , and as of September 30, 2015 we had no outstanding borrowings. With the Credit Facility provision of a fixed applicable margin of 1.75% plus a specified index rate based on one-month LIBOR, the interest rate that would have applied at September 30, 2015 had any borrowings been outstanding was approximately 1.95% . We also must pay a commitment fee of 0.25% per annum, payable quarterly, on the unused portion of the Credit Facility. The Credit Facility includes customary affirmative, negative, and financial covenants binding on the Company, including delivery of financial statements and other reports, maintenance of existence, and transactions with affiliates. The negative covenants limit the ability of the Company, among other things, to incur debt, incur liens, make investments, sell assets or declare or pay dividends on its capital stock. The financial covenants included in the Credit Facility, among other things, limit the amount of capital expenditures the Company can make, set forth maximum leverage and net funded debt ratios for the Company and a minimum fixed charge coverage ratio, and also require the Company to maintain minimum consolidated earnings before interest, taxes, depreciation and amortization. In addition, the Credit Facility includes customary events of default. The Company was in compliance with the covenants in its Credit Facility as of September 30, 2015 .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments We state cash equivalents at cost, which approximates fair market value. The carrying values for receivables from clients, unbilled services, accounts payable, deferred revenue and other accrued liabilities reasonably approximate fair market value due to the nature of the financial instrument and the short term maturity of these items. We had no debt outstanding as of September 30, 2015 and December 31, 2014 . Should we have debt outstanding in the future, we would consider the factors used in determining the fair value of debt to be Level 3 inputs (significant unobservable inputs).

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings We are party to a variety of legal proceedings arising in the normal course of business. While the results of these proceedings cannot be predicted with certainty, management believes that the final outcome of these proceedings will not have a material adverse effect on our financial position, results of operations or cash flows.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Reported income tax expense in each period primarily results from taxes on the income of foreign subsidiaries. The effective tax rates generally differ from the expected tax rate due primarily to the Company’s deferred tax asset valuation allowance on the domestic earnings and taxes on income of foreign subsidiaries. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service in the U.S. and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We apply a “more-likely-than-not” recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We refer to GAAP for guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. In accordance with FASB ASC 740, our policy for recording interest and penalties associated with tax positions is to record such items as a component of income before income taxes. A number of years may elapse before a particular tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments also varies by tax jurisdiction.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events None.

Business Acquisitions and Dives

Business Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Business Acquisitions and Divestitures	Business Acquisitions and Divestitures We completed several acquisitions and divestitures in recent years (see Note 12 in our Annual Report on Form 10-K for the year ended December 31, 2014). Generally, we acquire businesses that we believe advance our business strategy and we divest assets or businesses that we no longer find strategically aligned with our service offerings. In August 2015, we divested certain assets from a document service offering purchased as part of the Business Strategy, Inc. acquisition in 2011. We did not receive any initial cash payments at closing of the transaction and recognized a loss on the sale of $1.6 million , which we recognized in Other loss in the Consolidated Statements of Operations. We may receive a portion of revenue recognized by the buyer for the period from January 1, 2016 to December 31, 2016 that is based on a percentage of revenue from the clients transferred in connection with the disposition. The revenue sharing percentage ranges from 10% to 30% based on the type of solution or service to be performed.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Standards	New Accounting Standards A summary of the new accounting standards issued by the Financial Accounting Standards Board (“FASB”) and included in the Accounting Standards Codification (“ASC”) that apply to PRGX is set forth below: FASB ASC Update No. 2015-15. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, Interest - Imputations of Interest (Subtopic 835-30). The amendments in this update clarify the stance by the SEC allowing an entity to defer and present debt issuance costs for a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We are currently evaluating the impact of ASU 2015-15 on our consolidated financial statements. FASB ASC Update No. 2015-05. In April 2015, the FASB issued Accounting Standards Update 2015-05 , Goodwill and Other - Internal - Use Software (Subtopic 350-40). The amendments in this update provide guidance about whether a cloud computing arrangement includes a software license. Specifically the amendment states that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments in this update are effective for those annual periods beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-05 on our consolidated financial statements. FASB ASC Update No. 2015-03. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”). ASU 2015-03 simplifies presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual periods beginning after December 15, 2015 with early adoption permitted. The guidance also requires retrospective application to all prior periods presented. We are currently evaluating the impact of ASU 2015-03 on our consolidated financial statements. FASB ASC Update No. 2015-02. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810). The amendments in this update revise the consolidation model for all entities. Specifically the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities. 2. Eliminate the presumption that a general partner should consolidate a limited partnership. 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments in this update are effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-02 on our consolidated financial statements. FASB ASC Update No. 2015-01. In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20). This update eliminates the concept of extraordinary items and their use in financial statements and corresponding disclosure. The amendments in this update are effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact of ASU 2015-01 on our consolidated financial statements. FASB ASC Update No. 2014-15. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 provides guidance on management's responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and related disclosure requirements. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 with early adoption permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial statements. FASB ASC Update No. 2014-09. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the transferring entity expects to be entitled in exchange for those goods or services. ASU 2014-09 allows for adoption using either of two methods; retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of application recognized at the date of initial adoption. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements.

Earnings (Loss) Per Common Sh19

Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computations of basic and diluted earnings (loss) per common share	The following tables set forth the computations of basic and diluted loss per common share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, Basic loss per common share: 2015 2014 2015 2014 Numerator: Net loss $ (3,409 ) $ (239 ) $ (5,270 ) $ (5,381 ) Denominator: Weighted-average common shares outstanding 25,167 27,744 26,015 29,203 Basic loss per common share $ (0.14 ) $ (0.01 ) $ (0.20 ) $ (0.18 ) Three Months Ended September 30, Nine Months Ended September 30, Diluted loss per common share: 2015 2014 2015 2014 Numerator: Net loss $ (3,409 ) $ (239 ) $ (5,270 ) $ (5,381 ) Denominator: Weighted-average common shares outstanding 25,167 27,744 26,015 29,203 Incremental shares from stock-based compensation plans — — — — Denominator for diluted loss per common share 25,167 27,744 26,015 29,203 Diluted loss per common share $ (0.14 ) $ (0.01 ) $ (0.20 ) $ (0.18 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock option grants	The following table summarizes stock option grants during the nine months ended September 30, 2015 and 2014 : Grantee Type # of Options Granted Vesting Period Weighted Average Exercise Price Weighted Average Grant Date Fair Value 2015 Director 249,273 1 year or less $ 4.49 $ 2.44 Director 17,092 3 years $ 3.99 $ 1.33 Employee inducements (1) 135,000 3 years $ 5.51 $ 1.42 2014 Director 51,276 1 year or less $ 6.45 $ 1.89 Employee group (2) 1,480,000 3 years $ 6.99 $ 1.81 Employee inducements (3) 270,000 3 years $ 6.64 $ 1.71 (1) The Company granted non-qualified stock options outside its existing stock-based compensation plans in the first nine months of 2015 to three employees in connection with the employees joining the Company. (2) The exercise price for these options is $6.36 for the options that vested on June 27, 2015, $6.99 for the options that vest on June 27, 2016 and $7.63 for the options that vest on June 27, 2017. (3) The Company granted non-qualified stock options outside its existing stock-based compensation plans in the third quarter of 2014 to two executive officers in connection with the employees joining the Company. The weighted average exercise price for these options is calculated based on an exercise price of $6.04 for the options that vested on September 11, 2015, $6.64 for the options that vest on September 11, 2016 and $7.24 for the options that vest on September 11, 2017.
Summary of nonvested stock awards granted	The following table summarizes nonvested stock awards granted during the nine months ended September 30, 2015 and 2014 : Grantee Type # of Shares Granted Vesting Period Weighted Average Grant Date Fair Value 2015 Director 4,273 1 year or less $ 4.02 Director 17,092 3 years $ 3.99 Employee group (1) 2,533,333 2 years $ 3.99 Employee inducements (2) 10,000 3 years $ 5.29 2014 Director group 51,276 1 year or less $ 6.45 Employee group 120,000 3 years $ 6.36 Employee inducements (3) 70,000 3 years $ 6.04 (1) The Company granted nonvested performance-based stock awards (restricted stock units) in the first quarter of 2015 to eight executive officers totaling 1,325,000 units. During the third quarter of 2015, the Company issued 1,208,333 units to key employees. (2) The Company granted nonvested stock awards (restricted stock) outside its existing stock-based compensation plans in the first quarter of 2015 to two employees in connection with the employees joining the Company.

Operating Segments and Relate21

Operating Segments and Related Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment information	Segment information for the three and nine months ended September 30, 2015 and 2014 (in thousands) is as follows: Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Three Months Ended September 30, 2015 Revenue $ 23,981 $ 8,052 $ 1,332 $ 558 $ — $ 33,923 Net loss $ (3,409 ) Income tax expense 421 Interest income, net (8 ) EBIT $ 5,255 $ 365 $ (2,373 ) $ (532 ) $ (5,711 ) $ (2,996 ) Depreciation of property and equipment 947 148 160 7 — 1,262 Amortization of intangible assets 437 47 33 — — 517 EBITDA $ 6,639 $ 560 $ (2,180 ) $ (525 ) $ (5,711 ) $ (1,217 ) Foreign currency transaction (gains) losses on short-term intercompany balances 393 287 (714 ) — 688 654 Transformation severance and related expenses 101 — — 472 272 845 Loss on sale/disposal of assets — — 1,612 — — 1,612 Stock-based compensation — — — — 1,381 1,381 Adjusted EBITDA $ 7,133 $ 847 $ (1,282 ) $ (53 ) $ (3,370 ) $ 3,275 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Three Months Ended September 30, 2014 Revenue $ 28,550 $ 10,708 $ 3,586 $ 144 $ — $ 42,988 Net loss $ (239 ) Income tax expense 554 Interest income, net (44 ) EBIT $ 7,155 $ (151 ) $ (265 ) $ (1,133 ) $ (5,335 ) $ 271 Depreciation of property and equipment 1,111 150 145 22 — 1,428 Amortization of intangible assets 500 299 96 — — 895 EBITDA $ 8,766 $ 298 $ (24 ) $ (1,111 ) $ (5,335 ) $ 2,594 Foreign currency transaction (gains) losses on short-term intercompany balances 208 1,192 — — (179 ) 1,221 Transformation severance and related expenses 44 7 18 26 318 413 Stock-based compensation — — — — 1,405 1,405 Adjusted EBITDA $ 9,018 $ 1,497 $ (6 ) $ (1,085 ) $ (3,791 ) $ 5,633 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Nine Months Ended September 30, 2015 Revenue $ 71,748 $ 27,307 $ 4,290 $ 999 $ — $ 104,344 Net loss $ (5,270 ) Income tax expense 1,172 Interest income, net (103 ) EBIT $ 15,838 $ 1,719 $ (5,019 ) $ (1,961 ) $ (14,778 ) $ (4,201 ) Depreciation of property and equipment 2,895 454 479 30 — 3,858 Amortization of intangible assets 1,319 600 98 — — 2,017 EBITDA $ 20,052 $ 2,773 $ (4,442 ) $ (1,931 ) $ (14,778 ) $ 1,674 Foreign currency transaction (gains) losses on short-term intercompany balances 651 1,359 7 — (87 ) 1,930 Transformation severance and related expenses 265 268 30 683 308 1,554 Loss on sale/disposal of assets — — 1,612 — — 1,612 Stock-based compensation — — — — 4,530 4,530 Adjusted EBITDA $ 20,968 $ 4,400 $ (2,793 ) $ (1,248 ) $ (10,027 ) $ 11,300 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Healthcare Claims Recovery Audit Services Corporate Support Total Nine Months Ended September 30, 2014 Revenue $ 80,377 $ 32,792 $ 8,150 $ 1,551 $ — $ 122,870 Net loss $ (5,381 ) Income tax expense 853 Interest income, net (33 ) EBIT $ 16,632 $ 1,309 $ (3,607 ) $ (4,785 ) $ (14,110 ) $ (4,561 ) Depreciation of property and equipment 3,612 445 463 176 — 4,696 Amortization of intangible assets 1,501 911 288 — — 2,700 EBITDA $ 21,745 $ 2,665 $ (2,856 ) $ (4,609 ) $ (14,110 ) $ 2,835 Foreign currency transaction (gains) losses on short-term intercompany balances 164 1,079 — — (170 ) 1,073 Acquisition-related charges — — 249 — — 249 Transformation severance and related expenses 510 569 396 431 446 2,352 Stock-based compensation — — — — 3,409 3,409 Adjusted EBITDA $ 22,419 $ 4,313 $ (2,211 ) $ (4,178 ) $ (10,425 ) $ 9,918

Earnings (Loss) Per Common Sh22

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net loss	$ (3,409)	$ (239)	$ (5,270)	$ (5,381)
Denominator:
Weighted-average common shares outstanding (shares)	25,167	27,744	26,015	29,203
Basic loss per common share (usd per share)	$ (0.14)	$ (0.01)	$ (0.20)	$ (0.18)
Numerator:
Net loss	$ (3,409)	$ (239)	$ (5,270)	$ (5,381)
Denominator:
Weighted-average common shares outstanding (shares)	25,167	27,744	26,015	29,203
Incremental shares from stock-based compensation plans (shares)	0	0	0	0
Denominator for diluted earnings (loss) per common share (shares)	25,167	27,744	26,015	29,203
Diluted loss per common share (usd per share)	$ (0.14)	$ (0.01)	$ (0.20)	$ (0.18)

Earnings (Loss) Per Common Sh23

Earnings (Loss) Per Common Share (Textual) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items]
Number of common shares in the basic and diluted earnings per common share (shares)	400,000	400,000	600,000	600,000
Nonvested restricted share (shares)	2,600,000	2,600,000	100,000	100,000
Stock issued for exercise of options, shares	0	105,478	12,863	710,063
Stock issued for exercise of options, value		$ 0.5	$ 0.1	$ 2.8
Business Strategy, Inc. [Member]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items]
Business combination, consideration paid in common stock, shares			0	187,620
Business combination, consideration paid in common stock, value				$ 1.3
Common Stock [Member]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items]
Common stock repurchased, shares	1,735,277	1,413,017	3,912,037	3,117,277
Common stock repurchased, value	$ 6.9	$ 9	$ 17.3	$ 20
Non-qualified Option [Member]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items]
Weighted average shares outstanding excludes anti-dilutive shares underlying options (shares) (less than 0.1 million)	3,600,000	3,800,000	3,600,000	3,800,000
Performance Unit [Member]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items]
Weighted average shares outstanding excludes anti-dilutive shares underlying options (shares) (less than 0.1 million)		100,000		100,000

Stock-Based Compensation (Optio

Stock-Based Compensation (Options) (Details)	9 Months Ended
	Sep. 30, 2015employee$ / sharesshares	Sep. 30, 2014$ / sharesshares
Employee inducement [Member]
Summary of stock option grants
No. of Options Granted (shares) | shares		270,000
Vesting Period		3 years
Weighted Average Exercise Price (usd per share)		$ 6.64
Weighted Average Grant Date Fair Value (usd per share)		$ 1.71
Employee [Member]
Summary of stock option grants
Vesting Period	3 years
2008 Equity Incentive Plan [Member] | Director [Member]
Summary of stock option grants
No. of Options Granted (shares) | shares	249,273	51,276
Weighted Average Exercise Price (usd per share)	$ 4.49	$ 6.45
Weighted Average Grant Date Fair Value (usd per share)	$ 2.44	$ 1.89
2008 Equity Incentive Plan [Member] | Director [Member] | Maximum [Member]
Summary of stock option grants
Vesting Period	1 year	1 year
2008 Equity Incentive Plan [Member] | Director, Group 2 [Member]
Summary of stock option grants
No. of Options Granted (shares) | shares	17,092
Vesting Period	3 years
Weighted Average Exercise Price (usd per share)	$ 3.99
Weighted Average Grant Date Fair Value (usd per share)	$ 1.33
2008 Equity Incentive Plan [Member] | Employee inducement [Member]
Summary of stock option grants
No. of Options Granted (shares) | shares	135,000
Vesting Period	3 years
Weighted Average Exercise Price (usd per share)	$ 5.51
Weighted Average Grant Date Fair Value (usd per share)	$ 1.42
2008 Equity Incentive Plan [Member] | Employee inducement [Member] | Vesting Date, September 11, 2015 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		$ 6.04
2008 Equity Incentive Plan [Member] | Employee inducement [Member] | Vesting Date, September 11, 2016 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		6.64
2008 Equity Incentive Plan [Member] | Employee inducement [Member] | Vesting Date, September 11, 2017 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		$ 7.24
2008 Equity Incentive Plan [Member] | Employee [Member]
Summary of stock option grants
No. of Options Granted (shares) | shares		1,480,000
Vesting Period		3 years
Weighted Average Exercise Price (usd per share)		$ 6.99
Weighted Average Grant Date Fair Value (usd per share)		1.81
Number of employees, granted stock awards | employee	3
2008 Equity Incentive Plan [Member] | Employee [Member] | Vesting Date, June 27, 2015 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		6.36
2008 Equity Incentive Plan [Member] | Employee [Member] | Vesting Date, June 27, 2016 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		6.99
2008 Equity Incentive Plan [Member] | Employee [Member] | Vesting Date, June 27, 2017 [Member]
Summary of stock option grants
Weighted Average Exercise Price (usd per share)		$ 7.63

Stock-Based Compensation (Nonve

Stock-Based Compensation (Nonvested Stock Awards) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015shares	Mar. 31, 2015executive_officeremployeeshares	Sep. 30, 2015employee$ / sharesshares	Sep. 30, 2014$ / sharesshares
Director group [Member]
Summary of nonvested stock awards granted
Vesting Period			1 year
Employee [Member]
Summary of nonvested stock awards granted
Vesting Period			3 years
Employee inducement [Member]
Summary of nonvested stock awards granted
Vesting Period				3 years
Weighted Average Grant Date Fair Value (usd per share)				$ 1.71
2008 Equity Incentive Plan [Member] | Director, Group 2 [Member]
Summary of nonvested stock awards granted
Vesting Period			3 years
Weighted Average Grant Date Fair Value (usd per share)			$ 1.33
2008 Equity Incentive Plan [Member] | Employee [Member]
Summary of nonvested stock awards granted
Vesting Period				3 years
Weighted Average Grant Date Fair Value (usd per share)				$ 1.81
Number of employees, granted stock awards | employee			3
2008 Equity Incentive Plan [Member] | Employee inducement [Member]
Summary of nonvested stock awards granted
Vesting Period			3 years
Weighted Average Grant Date Fair Value (usd per share)			$ 1.42
2008 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Director group [Member]
Summary of nonvested stock awards granted
No. of Shares Granted (shares) | shares			4,273	51,276
Weighted Average Grant Date Fair Value (usd per share)			$ 4.02	$ 6.45
2008 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Director group [Member] | Maximum [Member]
Summary of nonvested stock awards granted
Vesting Period			1 year	1 year
2008 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Director, Group 2 [Member]
Summary of nonvested stock awards granted
No. of Shares Granted (shares) | shares			17,092
Vesting Period			3 years
Weighted Average Grant Date Fair Value (usd per share)			$ 3.99
2008 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Employee [Member]
Summary of nonvested stock awards granted
No. of Shares Granted (shares) | shares		1,325,000	2,533,333	120,000
Vesting Period			2 years	3 years
Weighted Average Grant Date Fair Value (usd per share)			$ 3.99	$ 6.36
Number of executive officers, granted stock awards | executive_officer		8
Issued units to key employees | shares	1,208,333
2008 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Employee inducement [Member]
Summary of nonvested stock awards granted
No. of Shares Granted (shares) | shares			10,000	70,000
Vesting Period			3 years	3 years
Weighted Average Grant Date Fair Value (usd per share)			$ 5.29	$ 6.04
Number of employees, granted stock awards | employee		2

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) $ in Millions	Sep. 28, 2015shares	Mar. 30, 2015executive_officershares	Jun. 19, 2012USD ($)executive_officershares	Sep. 30, 2015USD ($)compensation_planshares	Sep. 30, 2014USD ($)shares	Sep. 30, 2015USD ($)shares	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)executive_officershares	Mar. 31, 2015executive_officer
Stock-Based Compensation (Textual) [Abstract]
Number of stock-based compensation plans | compensation_plan				2
The Plans [Member]
Stock-Based Compensation (Textual) [Abstract]
Selling, general and administrative expenses | $				$ 1.4	$ 1.4	$ 4.5	$ 3.4
Unrecognized stock-based compensation expense related to stock options | $				$ 11.2		$ 11.2		$ 11.2
Weighted-average period for recognizing stock compensation expense						1 year 2 months 1 day
Employee Group [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period						3 years
Employee Group [Member] | 2008 Equity Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period							3 years
Director Group [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period						1 year
Stock Options [Member] | 2008 Equity Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options expiration period						7 years
Stock Options [Member] | Employee Group [Member] | 2008 Equity Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period						3 years
Stock Options [Member] | Director [Member] | 2008 Equity Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period						1 year
MIP Performance Units [Member] | 2006 Management Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period			3 years
Number of executive officers, granted stock awards			7
Total of performance units were outstanding and fully vested (shares) | shares			154,264	0		0		0
Grant date fair value awards | $			$ 1.2
Percentage of performance units (percent)			60.00%
Percentage of fair market value (percent)			40.00%
Performance units settled in period (shares) | shares						16,530		137,740
Common stock issued during period (shares) | shares				0	16,526	9,918		79,356
Cash payments for shares settled during period | $						$ 0.1		$ 0.3
Number of executive officers that settled performance units in period (executive officers)								2
Number of former executive officers that settled performance units in period (executive officers)								4
Performance units forfeited in period (shares) | shares								16,524
Number of former executive officers that forfeited performance units in period (executive officer)								1
Performance-based Restricted Stock Units [Member] | 2006 Management Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Number of executive officers, granted stock awards		8
Total of performance units were outstanding and fully vested (shares) | shares	1,208,333	1,325,000
Percentage of performance units (percent)	25.00%	50.00%
Percentage of fair market value (percent)	75.00%	50.00%
Requisite performance period	2 years	2 years
Performance-based Restricted Stock Units [Member] | 2006 Management Incentive Plan [Member] | Threshold Performance Level [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting rights (percent)	35.00%	35.00%
Performance-based Restricted Stock Units [Member] | 2006 Management Incentive Plan [Member] | Target Performance Level [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting rights (percent)	100.00%	100.00%
Performance-based Restricted Stock Units [Member] | 2006 Management Incentive Plan [Member] | Maximum Performance Level [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting rights (percent)	100.00%	200.00%
Performance-based Restricted Stock Units [Member] | Employee Group [Member] | 2008 Equity Incentive Plan [Member]
Stock-Based Compensation (Textual) [Abstract]
Award vesting period						2 years	3 years
Number of executive officers, granted stock awards									8

Operating Segments and Relate27

Operating Segments and Related Information (Textual) (Details)	9 Months Ended
	Sep. 30, 2015segment
Segment Reporting [Abstract]
Number of reportable segments	4

Operating Segments and Relate28

Operating Segments and Related Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 33,923	$ 42,988	$ 104,344	$ 122,870
Net loss	(3,409)	(239)	(5,270)	(5,381)
Income tax expense	421	554	1,172	853
Interest income, net	(8)	(44)	(103)	(33)
EBIT	(2,996)	271	(4,201)	(4,561)
Depreciation of property and equipment	1,262	1,428	3,858	4,696
Amortization of intangible assets	517	895	2,017	2,700
EBITDA	(1,217)	2,594	1,674	2,835
Foreign currency transaction (gains) losses on short-term intercompany balances	654	1,221	1,930	1,073
Acquisition-related charges				249
Transformation severance and related expenses	845	413	1,554	2,352
Loss on sale/disposal of assets	1,612		1,612
Stock-based compensation	1,381	1,405	4,530	3,409
Adjusted EBITDA	3,275	5,633	11,300	9,918
Recovery Audit Services - Americas [Member]
Segment Reporting Information [Line Items]
Revenue	23,981	28,550	71,748	80,377
EBIT	5,255	7,155	15,838	16,632
Depreciation of property and equipment	947	1,111	2,895	3,612
Amortization of intangible assets	437	500	1,319	1,501
EBITDA	6,639	8,766	20,052	21,745
Foreign currency transaction (gains) losses on short-term intercompany balances	393	208	651	164
Acquisition-related charges				0
Transformation severance and related expenses	101	44	265	510
Adjusted EBITDA	7,133	9,018	20,968	22,419
Recovery Audit Services - Europe/Asia-Pacific [Member]
Segment Reporting Information [Line Items]
Revenue	8,052	10,708	27,307	32,792
EBIT	365	(151)	1,719	1,309
Depreciation of property and equipment	148	150	454	445
Amortization of intangible assets	47	299	600	911
EBITDA	560	298	2,773	2,665
Foreign currency transaction (gains) losses on short-term intercompany balances	287	1,192	1,359	1,079
Acquisition-related charges				0
Transformation severance and related expenses	0	7	268	569
Adjusted EBITDA	847	1,497	4,400	4,313
Adjacent Services [Member]
Segment Reporting Information [Line Items]
Revenue	1,332	3,586	4,290	8,150
EBIT	(2,373)	(265)	(5,019)	(3,607)
Depreciation of property and equipment	160	145	479	463
Amortization of intangible assets	33	96	98	288
EBITDA	(2,180)	(24)	(4,442)	(2,856)
Foreign currency transaction (gains) losses on short-term intercompany balances	(714)		7
Acquisition-related charges				249
Transformation severance and related expenses	0	18	30	396
Loss on sale/disposal of assets	1,612		1,612
Adjusted EBITDA	(1,282)	(6)	(2,793)	(2,211)
Healthcare Claims Recovery Audit Services [Member]
Segment Reporting Information [Line Items]
Revenue	558	144	999	1,551
EBIT	(532)	(1,133)	(1,961)	(4,785)
Depreciation of property and equipment	7	22	30	176
EBITDA	(525)	(1,111)	(1,931)	(4,609)
Transformation severance and related expenses	472	26	683	431
Adjusted EBITDA	(53)	(1,085)	(1,248)	(4,178)
Corporate Segment [Member]
Segment Reporting Information [Line Items]
EBIT	(5,711)	(5,335)	(14,778)	(14,110)
EBITDA	(5,711)	(5,335)	(14,778)	(14,110)
Foreign currency transaction (gains) losses on short-term intercompany balances	688	(179)	(87)	(170)
Transformation severance and related expenses	272	318	308	446
Stock-based compensation	1,381	1,405	4,530	3,409
Adjusted EBITDA	$ (3,370)	$ (3,791)	$ (10,027)	$ (10,425)

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Cash and cash equivalents included short-term investments	$ 3.7	$ 12.2
Foreign Banks [Member]
Line of Credit Facility [Line Items]
Cash and cash equivalents included short-term investments	$ 2.4	$ 2.5

Debt (Details)

Debt (Details) - 2010 Credit Agreement [Member] - SunTrust Bank [Member] - USD ($)	Jan. 19, 2010	Sep. 30, 2015
Line of Credit Facility [Line Items]
Period of term loan and the revolving credit facility	4 years
Committed revolving credit facility		$ 20,000,000
Revolving credit facility outstanding		$ 0
Interest rate (percent)		1.95%
Revolving Credit facility commitment fee (percent)	0.25%
LIBOR [Member]
Line of Credit Facility [Line Items]
Revolving Credit facility and Term Loan interest rate (percent)	1.75%

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Bank Loan Obligations [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Fair value of long term debt	$ 0	$ 0

Business Acquisitions and Div32

Business Acquisitions and Divestitures (Details) - USD ($) $ in Thousands	Aug. 31, 2015	Aug. 31, 2015	Sep. 30, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Loss on sale of assets			$ 1,612	$ 1,612
Business Strategy, Inc. [Member] | Minimum [Member]
Business Acquisition [Line Items]
Revenue sharing percentage		10.00%
Business Strategy, Inc. [Member] | Maximum [Member]
Business Acquisition [Line Items]
Revenue sharing percentage		30.00%
Business Strategy, Inc. [Member] | Other Nonoperating Income (Expense) [Member]
Business Acquisition [Line Items]
Loss on sale of assets	$ 1,600