Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 03, 2017 | |
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 | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,125,253 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 33,569,000 | $ 31,233,000 |
Operating expenses: | ||
Cost of revenue | 23,026,000 | 21,646,000 |
Selling, general and administrative expenses | 10,536,000 | 8,848,000 |
Depreciation of property and equipment | 1,220,000 | 1,232,000 |
Amortization of intangible assets | 722,000 | 394,000 |
Total operating expenses | 35,504,000 | 32,120,000 |
Operating loss from continuing operations | (1,935,000) | (887,000) |
Foreign currency transaction gains on short-term intercompany balances | (552,000) | (1,007,000) |
Interest expense (income), net | 37,000 | (29,000) |
Other expense (income) | (199,000) | 10,000 |
Income (loss) from continuing operations before income taxes | (1,220,000) | 139,000 |
Income tax expense | 627,000 | 204,000 |
Net loss from continuing operations | (1,847,000) | (65,000) |
Discontinued operations: | ||
Loss from discontinued operations | (336,000) | (487,000) |
Other loss (income) | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
Net loss from discontinued operations | (336,000) | (487,000) |
Net loss | $ (2,183,000) | $ (552,000) |
Basic earnings (loss) per common share | ||
Basic earnings (loss) from continuing operations (in usd per share) | $ (0.08) | $ 0 |
Basic loss from discontinued operations (in usd per share) | (0.02) | (0.02) |
Total basic loss per common share (in usd per share) | (0.10) | (0.02) |
Diluted earnings (loss) per common share | ||
Diluted earnings (loss) from continuing operations (in usd per share) | (0.08) | 0 |
Diluted loss from discontinued operations (in usd per share) | (0.02) | (0.02) |
Total diluted loss per common share (in usd per share) | $ (0.10) | $ (0.02) |
Weighted-average common shares outstanding | ||
Basic (shares) | 21,945 | 22,438 |
Diluted (shares) | 21,945 | 22,438 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net loss | $ (2,183) | $ (552) |
Foreign currency translation adjustments | 275 | (369) |
Comprehensive loss | $ (1,908) | $ (921) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 11,535 | $ 15,723 |
Restricted cash | 102 | 47 |
Contract receivables, less allowances of $726 in 2017 and $799 in 2016: | ||
Billed | 30,157 | 29,186 |
Unbilled | 1,359 | 2,278 |
Receivables Net | 31,516 | 31,464 |
Employee advances and miscellaneous receivables, less allowances of $482 in 2017 and $500 in 2016 | 2,020 | 2,184 |
Total receivables | 33,536 | 33,648 |
Prepaid expenses and other current assets | 3,291 | 3,363 |
Total current assets | 48,464 | 52,781 |
Property and equipment | 65,058 | 63,325 |
Less accumulated depreciation and amortization | (52,496) | (51,089) |
Property and equipment, net | 12,562 | 12,236 |
Goodwill | 22,364 | 13,823 |
Intangible assets, less accumulated amortization of $36,974 in 2017 and $36,128 in 2016 | 10,278 | 10,998 |
Noncurrent portion of unbilled receivables | 765 | 854 |
Deferred income taxes | 2,259 | 2,269 |
Other assets | 129 | 513 |
Total assets | 96,821 | 93,474 |
Current liabilities: | ||
Accounts payable and accrued expenses | 6,250 | 7,299 |
Accrued payroll and related expenses | 10,871 | 13,868 |
Refund liabilities | 7,718 | 7,900 |
Deferred revenue | 1,421 | 1,330 |
Current portion of debt (Note E) | 13,600 | 3,600 |
Business acquisition obligations | 2,076 | 2,078 |
Total current liabilities | 41,936 | 36,075 |
Noncurrent refund liabilities | 746 | 804 |
Other long-term liabilities | 2,557 | 4,205 |
Total liabilities | 45,239 | 41,084 |
Commitments and contingencies (Note G) | ||
Shareholders’ equity (Note B): | ||
Common stock, no par value; $.01 stated value per share. Authorized 50,000,000 shares; 22,083,587 shares issued and outstanding at March 31, 2017 and 21,845,920 shares issued and outstanding at December 31, 2016 | 221 | 218 |
Additional paid-in capital | 576,215 | 575,118 |
Accumulated deficit | (525,416) | (523,233) |
Accumulated other comprehensive income | 562 | 287 |
Total shareholders’ equity | 51,582 | 52,390 |
Total liabilities and shareholders’ equity | $ 96,821 | $ 93,474 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for contract receivables | $ 725 | $ 799 |
Allowances for employee advances and miscellaneous receivables | 482 | 500 |
Accumulated amortization on intangible assets | $ 36,974 | $ 36,128 |
Common stock, par value (usd per share) | ||
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) | 22,083,587 | 21,845,920 |
Common stock, shares outstanding (shares) | 22,083,587 | 21,845,920 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,183) | $ (552) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,944 | 1,630 |
Amortization of deferred loan costs | 0 | 20 |
Stock-based compensation expense | 1,566 | 773 |
Deferred income taxes | 0 | (50) |
Foreign currency transaction gains on short-term intercompany balances | (552) | (1,007) |
Changes in operating assets and liabilities: | ||
Restricted cash | (55) | (52) |
Billed receivables | 1,029 | 2,393 |
Unbilled receivables | 1,008 | 690 |
Prepaid expenses and other current assets | 306 | (50) |
Other assets | 396 | (60) |
Accounts payable and accrued expenses | (1,036) | 1,338 |
Accrued payroll and related expenses | (3,119) | 11 |
Refund liabilities | (241) | 66 |
Deferred revenue | 91 | (207) |
Other long-term liabilities | (2,494) | (25) |
Net cash (used in) provided by operating activities | (3,341) | 4,918 |
Business acquisition, net of cash acquired | (10,140) | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of disposal proceeds | (1,500) | (1,023) |
Net cash used in investing activities | (11,640) | (1,023) |
Proceeds from term loan | 10,000 | 0 |
Cash flows from financing activities: | ||
Restricted stock repurchased from employees for withholding taxes | 0 | (48) |
Proceeds from option exercises | 382 | 132 |
Repurchase of common stock | 0 | (2,624) |
Net cash provided by (used in) financing activities | 10,382 | (2,540) |
Effect of exchange rates on cash and cash equivalents | 411 | (778) |
Net (decrease) increase in cash and cash equivalents | (4,188) | 577 |
Cash and cash equivalents at beginning of period | 15,723 | |
Cash and cash equivalents at end of period | 11,535 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 33 | 13 |
Cash paid during the period for income taxes, net of refunds received | $ 891 | $ 358 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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 period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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 Notes thereto included in the Company’s Form 10-K for the year ended December 31, 2016 . 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. 2017-04 - In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The standard removes the second step of the two step test used to determine an impairment of goodwill. Under the new standard, an entity only compares the fair value of the reporting unit to the carrying amount, including goodwill, and records the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard will become effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. FASB ASC Update No. 2016-02 - In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The standard requires lessors to classify leases as either sales-type, finance or operating. A sales-type lease occurs if the lessor transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. The standard will become effective for the Company beginning January 1, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for an entity to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In 2016, the FASB issued accounting standards updates to address implementation issues and to clarify the guidance for identifying performance obligations, licenses and determining if a company is the principal or agent in a revenue arrangement. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. We have substantially completed our evaluation of significant contracts and are currently assessing the impact of adopting the standards update on our consolidated financial statements. We will continue our evaluation of the standards update through the date of adoption. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
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 earnings (loss) per common share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data): Three Months Ended March 31, Basic earnings (loss) per common share: 2017 2016 Numerator: Net loss from continuing operations $ (1,847 ) $ (65 ) Net loss from discontinued operations $ (336 ) $ (487 ) Denominator: Weighted-average common shares outstanding 21,945 22,438 Basic loss per common share from continuing operations $ (0.08 ) $ — Basic loss per common share from discontinued operations $ (0.02 ) $ (0.02 ) Total basic loss per common share $ (0.10 ) $ (0.02 ) For all periods presented, basic and diluted net loss per share is the same, as any additional common stock equivalents would be anti-dilutive. We excluded 3.2 million of stock options from the weighted average diluted common shares outstanding for the three months ended March 31, 2017 and 2016 , respectively, which would have been anti-dilutive due to the net loss in those periods. In addition, we excluded 2.0 million and 1.8 million of restricted stock units from the calculation of weighted average diluted common shares outstanding for the three months ended March 31, 2017 and 2016 , respectively, which would have been anti-dilutive due to the net loss. We repurchased no shares of our common stock during the three months ended March 31, 2017 . During the three months ended March 31, 2016, we repurchased 663,541 shares of our common stock for $2.6 million . Pursuant to exercises of outstanding stock options, we issued 84,467 shares of our common stock having a value of approximately $0.4 million in the three months ended March 31, 2017 and 46,896 shares of our common stock having a value of less than $0.1 million in the three months ended March 31, 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has one stock-based compensation plan under which awards were outstanding in the relevant periods: The 2008 Equity Incentive Plan (“2008 EIP”). We describe the 2008 EIP in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2016 . For all periods presented herein, awards outside the 2008 EIP are referred to as inducement awards. 2008 EIP Awards and Inducement Awards Stock options granted under the 2008 EIP generally have a term of seven years and vest in equal annual increments over the vesting period, which typically is three years for employees and one year for directors. The following table summarizes stock option activity for the three months ended March 31, 2017 . Options Shares Weighted- Average Exercise Price (Per Share) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($ 000’s) Outstanding at January 1, 2017 3,420,385 $ 6.26 4.3 years $ 1,204 Granted (1) 143,750 5.94 Exercised (84,467 ) 4.52 $ 382 Forfeited (283,500 ) 6.20 Expired (2,500 ) 5.98 Outstanding at March 31, 2017 3,193,668 $ 6.30 4.2 years $ 1,633 Exercisable at March 31, 2017 2,158,893 $ 6.38 3.5 years $ 837 (1) During the three months ended March 31, 2017, 100,000 shares were granted to employees as inducements for employment and 43,750 shares were granted to a new member of the Board of Directors. The weighted-average grant date fair value of options granted was $3.31 per share for the three months ended March 31, 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 activity during the three months ended March 31, 2017 . Nonvested Stock Shares Weighted Average Grant Date Fair Value (Per Share) Nonvested at January 1, 2017 3,893,050 $ 4.37 Granted (1) 458,000 6.30 Vested — — Forfeited (2,358,060 ) 4.02 Nonvested at March 31, 2017 1,992,990 $ 4.73 (1) The weighted-average grant date fair value of nonvested stock awards (restricted stock and restricted stock units) granted during the three months ended March 31, 2017 was $6.30 . On March 30, 2017, six executive officers and six other senior leaders of the Company were granted 274,800 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 100% of the number of PBUs being settled. The PBUs vest and become payable based on revenue and the cumulative adjusted EBITDA that the Company (excluding the Healthcare Claims Recovery Audit business) achieves for the two -year performance period ending December 31, 2018. 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 will 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). During the three months ended March 31, 2017 , the PBUs granted in 2016 and 2017 were expensed at the target performance level based on management's estimates. During the three months ended March 31, 2016, the PBUs that were granted on March 31, 2016 were expensed at the target performance level based on management's estimates. Selling, general and administrative expenses for the three months ended March 31, 2017 and 2016 include $1.6 million and $0.8 million , respectively, related to stock-based compensation charges. At March 31, 2017 , there was $6.7 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 1.4 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 | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | Operating Segments and Related Information We conduct our operations through the following three 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, spend analytics, PRGX OPTIX TM , SIM services and associated advisory services. Additionally, Corporate Support includes the unallocated portion of corporate selling, general and administrative expenses not specifically attributable to the three reportable segments. During the fourth quarter of 2015, PRGX entered into agreements with third parties to fulfill its Medicare recovery audit contractor ("RAC") program subcontract obligations to audit Medicare payments and provide support for claims appeals and assigned its remaining Medicaid contract to another party. The Company will continue to incur certain expenses while the current Medicare RAC contracts are still in effect. As a result, the Healthcare Claims Recovery Audit services business has been reported as Discontinued Operations in accordance with U.S. GAAP. Discontinued operations information for the three months ended March 31, 2017 and 2016 is as follows: Results of Discontinued Operations Three Months Ended March 31, (in thousands) 2017 2016 Revenue, net $ — $ (11 ) Cost of sales 334 388 Selling, general and administrative expense — 84 Depreciation and amortization 2 4 Loss from discontinued operations before income taxes $ (336 ) $ (487 ) Income tax expense — — Net loss from discontinued operations $ (336 ) $ (487 ) 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 months ended March 31, 2017 and 2016 (in thousands) is as follows: Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2017 Revenue $ 24,383 $ 7,831 $ 1,355 $ — $ 33,569 Net loss from continuing operations $ (1,847 ) Income tax expense 627 Interest expense (income), net 37 EBIT $ 5,986 $ 410 $ (1,740 ) $ (5,839 ) (1,183 ) Depreciation of property and equipment 910 140 170 — 1,220 Amortization of intangible assets 329 — 393 — 722 EBITDA $ 7,225 $ 550 $ (1,177 ) $ (5,839 ) $ 759 Other expense (income) — — (199 ) — (199 ) Foreign currency transaction (gains) losses on short-term intercompany balances (163 ) (252 ) (3 ) (134 ) (552 ) Transformation severance and related expenses 76 138 — 369 583 Stock-based compensation — — — 1,566 1,566 Adjusted EBITDA $ 7,138 $ 436 $ (1,379 ) $ (4,038 ) $ 2,157 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2016 Revenue $ 21,567 $ 9,249 $ 417 $ — $ 31,233 Net loss from continuing operations (65 ) Income tax expense 204 Interest expense (income), net (29 ) EBIT $ 3,997 $ 2,254 $ (1,086 ) $ (5,055 ) $ 110 Depreciation of property and equipment 992 98 142 — 1,232 Amortization of intangible assets 372 — 22 — 394 EBITDA $ 5,361 $ 2,352 $ (922 ) $ (5,055 ) $ 1,736 Other expenses (income) 10 10 Foreign currency transaction (gains) losses on short-term intercompany balances (257 ) (746 ) (1 ) (3 ) (1,007 ) Transformation severance and related expenses 144 71 — 310 525 Stock-based compensation — — — 773 773 Adjusted EBITDA $ 5,248 $ 1,677 $ (913 ) $ (3,975 ) $ 2,037 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On January 19, 2010, we entered into a four -year revolving credit and term loan agreement with SunTrust Bank (“SunTrust”). The SunTrust credit facility initially consisted of a $15.0 million committed revolving credit facility and a $15.0 million term loan. The SunTrust term loan required quarterly principal payments of $0.8 million beginning in March 2010, and a final principal payment of $3.0 million due in January 2014 that we paid in December 2013. The SunTrust credit facility is guaranteed by the Company and all of its material domestic subsidiaries and secured by substantially all of the assets of the Company. Prior to the January 2014 amendment to the SunTrust credit facility described below, amounts available under the SunTrust revolver were based on eligible accounts receivable and other factors. Interest on both the revolver and term loan was payable monthly and accrued at an index rate using the one -month LIBOR rate, plus an applicable margin as determined by the loan agreement. The applicable interest rate margin varied from 2.25% per annum to 3.5% per annum, dependent on our consolidated leverage ratio, and was determined in accordance with a pricing grid under the SunTrust loan agreement. We also paid a commitment fee of 0.5% per annum, payable quarterly, on the unused portion of the $15.0 million SunTrust revolving credit facility. On January 17, 2014, we entered into an amendment of the SunTrust credit facility that increased the committed revolving credit facility from $15.0 million to $25.0 million , lowered the applicable margin to a fixed rate of 1.75% , eliminated the provision limiting availability under the revolving credit facility based on eligible accounts receivable and extended the scheduled maturity of the revolving credit facility to January 16, 2015 (subject to earlier termination as provided therein). We also paid a commitment fee of 0.5% per annum, payable quarterly, on the unused portion of the SunTrust revolving credit facility through the next amendment date. On December 23, 2014, we entered into an amendment of the SunTrust credit facility that reduced the committed revolving credit facility from $25.0 million to $20.0 million . The credit facility bears interest at a rate per annum comprised of a specified index rate based on one -month LIBOR, plus an applicable margin (which was set at 1.75% per annum pursuant to this amendment). The index rate is determined as of the first business day of each calendar month with the provision of a fixed applicable margin of 1.75% per the amendment of the SunTrust credit facility. The credit facility included two financial covenants (a maximum leverage ratio and a minimum fixed charge coverage ratio) that would apply only if we had borrowings under the credit facility that arose or remained outstanding during the final 30 calendar days of any fiscal quarter. These financial covenants also will be tested, on a modified pro forma basis, in connection with each new borrowing under the credit facility. This amendment also extended the scheduled maturity of the revolving credit facility to December 23, 2017 and lowered the commitment fee to 0.25% per annum, payable quarterly, on the unused portion of the revolving credit facility. The weighted-average interest rate for the commitment fee due on the revolving credit facility was 0.25% in 2016 and 2015. On December 21, 2016, we entered into an amendment of the SunTrust credit facility in order to clarify certain definitions and other terms of the facility. On October 31, 2016, the Company borrowed $3.6 million from its credit facility to finance the acquisition of Lavante, Inc. On February 27, 2017 the Company borrowed $10.0 million from its credit facility to finance the acquisition of substantially all of the assets of Cost & Compliance Associates, LLC and Cost & Compliance Associates Limited. Total borrowings outstanding as of March 31, 2017 were $13.6 million . As of March 31, 2017, the amount available for borrowing under the SunTrust credit facility was $20.0 million . 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 applied at March 31, 2017 was approximately 2.53% . As of March 31, 2017 we were required to pay a commitment fee of 0.25% per annum, payable quarterly, on the unused portion of the revolving SunTrust 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 the SunTrust credit facility as of March 31, 2017 . As of March 31, 2017, there was $13.6 million in debt that would have come due December 31, 2017. On May 4, 2017, we entered into an amendment of the SunTrust credit facility, that, among other things, (i) increased the aggregate principal amount of the committed revolving credit facility from $20.0 million to $35.0 million through December 31, 2018, which amount will be reduced to $30.0 million thereafter, (ii) extended the maturity date of the credit facility to December 31, 2019, (iii) added customary provisions to reflect European Union “bail-in” directive compliance language, and (iv) modified the financial covenants applicable to the Company during the remaining term of the credit facility by (A) revising the maximum leverage ratio and minimum fixed charge coverage ratio and (B) adding an additional financial covenant requiring the Company to maintain a minimum amount of consolidated adjusted EBITDA. In addition, the applicable margin used to determine the interest rate per annum on outstanding borrowings under the credit facility, and the ongoing commitment fee payable on the unused portion of the revolving credit facility commitment, both of which previously had been fixed percentages per annum, have been amended and both now will vary based upon our quarterly leverage ratio calculation under the SunTrust credit facility. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
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 receivables, 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 record bank debt, if any, as of the period end date based on the effective borrowing rate and repayment terms when originated. As of March 31, 2017, we had $13.6 million in bank debt outstanding, and we had no bank debt outstanding as of March 31, 2016. We believe the carrying value of the bank debt approximates its fair value. We considered the factors used in determining the fair value of this debt to be Level 3 inputs (significant unobservable inputs). We had $4.0 million of business acquisition obligations as of March 31, 2017, and no such obligations as of March 31, 2016. Our business acquisition obligations represent the fair value of deferred consideration and earn-out payments estimated to be due as of the date for which we recorded these amounts. We determine the preliminary estimated fair values of business acquisition obligations based on our projections of future revenue and profits or other factors used in the calculation of the ultimate payment(s) to be made. The discount rate that we use to value the liability is based on specific business risk, cost of capital, and other factors. We consider these factors to be Level 3 inputs (significant unobservable inputs). We state certain assets at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States of America. Generally, these assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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 | 3 Months Ended |
Mar. 31, 2017 | |
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. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Acquisitions Cost & Compliance Associates In February 2017, we completed the acquisition of substantially all of the assets of Cost & Compliance Associates, LLC and Cost & Compliance Associates Limited (collectively “C&CA”). C&CA is a commercial recovery audit and contract compliance firm with operations in the U.S. and the UK. At the closing of the transaction, we paid $10.0 million in cash, which amount is subject to a customary working capital adjustment. In addition, we may be required to pay earnout consideration in cash over a period of two years, based on the performance of the acquired businesses and our contract compliance business following closing. The aggregate consideration we may be required to pay in connection with this acquisition cannot exceed $18.0 million . We have recorded C&CA’s assets acquired based on our preliminary estimates of their fair values at the acquisition date. The estimated fair value of C&CA assets acquired and resulting goodwill are subject to adjustment as we finalize our fair value analysis. We expect to complete our fair value determinations no later than the fourth quarter of 2017. There may be differences compared to those amounts reflected in our consolidated financial statements as of March 31, 2017 as we finalize our fair value analysis and such changes could be material. Based on our preliminary estimates, the purchase price exceeded the aggregate estimated fair value of the acquired assets at the acquisition date by $8.4 million , which amount has been allocated and recognized as goodwill within our Recovery Audit Services - Americas business segment. None of the goodwill associated with the acquisition is deductible for income tax purposes and, as such, no deferred taxes have been recorded related to goodwill. The preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed is presented below: As of February 27, 2017 Accounts receivable $ 1,611 Goodwill 8,389 Total purchase price $ 10,000 We are still reviewing the valuation of the C&CA acquisition, in particular the value of any potential earnout due to C&CA, the value and useful lives of any long-lived assets acquired from C&CA and any potential deferred tax assets or liabilities associated with the valuation. The revenue and earnings from continuing operations of C&CA from the acquisition date through March 31, 2017 are presented below and included in our consolidated statements of operations. These amounts are not necessarily indicative of the results of operations that C&CA would have realized if it had continued to operate as a stand-alone company during the period presented, primarily due to costs that are now reflected in our unallocated corporate costs and not allocated to C&CA. Revenue $ 1,467 Earnings from operations $ 776 As required by ASC 805, the following unaudited pro forma statements of operations for the three months ended March 31, 2017 and 2016 give effect to the C&CA acquisition as if it had been completed on January 1, 2016. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the periods presented had the C&CA acquisition been completed on January 1, 2016. In addition, the unaudited pro forma financial information does not purport to project future operating results. This information is preliminary in nature and subject to change based on final purchase price adjustments. The pro forma statements of operations do not reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the C&CA acquisition. Three months ended March 31, 2017 March 31, 2016 Revenue from continuing operations (pro forma) $ 34,408 $ 34,446 Income (loss) from continuing operations (pro forma) $ (2,522 ) $ 386 Lavante In October 2016, we acquired Lavante, Inc. ("Lavante"), a SaaS-based supplier of SIM and recovery audit services firm, for a net purchase price of $3.8 million . Lavante’s assets consist primarily of its proprietary software applications. We have recorded Lavante's assets acquired and liabilities assumed based on our preliminary estimates of their fair values at the acquisition date. The determination of the fair values of the assets acquired and liabilities assumed (and the related determination of estimated lives of depreciable and amortizable tangible and identifiable intangible assets) requires significant judgment and estimates. The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of Lavante's assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as we finalize our fair value analysis. We expect to complete our fair value determinations no later than the fourth quarter of 2017. We do not currently expect our fair value determinations to change materially; however, there may be differences compared to those amounts reflected in our consolidated financial statements as of December 31, 2016 as we finalize our fair value analysis and such changes could be material. Based on our preliminary estimates, the purchase price exceeded the aggregate estimated fair value of the acquired assets and assumed liabilities at the acquisition date by $2.3 million , which amount has been allocated and recognized as goodwill within our Adjacent Service business segment. No ne of the goodwill associated with the acquisition is deductible for income tax purposes and, as such, no deferred taxes have been recorded related to goodwill. The preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed is presented below: As of October 31, 2016 Cash and cash equivalents $ 28 Account receivables 207 Other Current assets 92 Goodwill 2,286 Intangible assets 6,178 Fixed assets 98 Total assets 8,889 Accounts payable 121 Deferred revenue 370 Other current liabilities 757 Total liabilities 1,248 Total purchase price $ 3,809 Our estimates of the fair values of identifiable intangible assets are presented below: Fair values at October 31, 2016 Remaining useful lives (in months) Trademarks $ 163 48 Patents 114 12 Software 5,901 48 Total intangible assets $ 6,178 In general, intangible assets include trade names, trademarks, copyrights, patents, customer contacts and/or relationships, developed technology (computer software), technological know-how, and brand names. When estimating the value of such assets, we consider the future income stream associated with the specific asset, taking into account the asset's estimated remaining life, average annual anticipated rate of return, and market rates of return. Often, an income approach such as a multi-period excess earnings model or distributor model will be used. We may also consider the market price of comparable assets recently sold or the asking prices for similar assets currently for sale. This methodology involves researching the industry to determine if comparable companies pay or receive royalties for rights associated with the use of the asset. The royalty rates charged or received are then used as valuation benchmarks. The relief from royalty method is often used in the valuation of assets involving fair royalty rates (e.g., trademarks, patents, etc.). The cost approach analyzes the current cost to re-create or duplicate an asset minus the decrease in value due to the passage of time or obsolescence. For example, when valuing a trademark (when it is not the primary asset acquired), we calculate the costs that would have been incurred over the years in establishing consumer recognition and perception of quality, service and reliability. We also consider the legal costs incurred in registering the asset. As required by ASC 805, the following unaudited pro forma statements of operations for the three months ended March 31, 2016 give effect to the Lavante acquisition as if it had been completed on January 1, 2016. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the period presented had the Lavante acquisition been completed on January 1, 2016. In addition, the unaudited pro forma financial information does not purport to project future operating results. This information is preliminary in nature and subject to change based on final purchase price adjustments. The pro forma statements of operations do not reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the Lavante acquisition. March 31, 2016 Revenue from continuing operations (pro forma) $ 31,888 Loss from continuing operations (pro forma) $ (1,578 ) |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 4, 2017, we entered into an amendment of the SunTrust credit facility, that, among other things, (i) increased the aggregate principal amount of the committed revolving credit facility from $20.0 million to $35.0 million through December 31, 2018, which amount will be reduced to $30.0 million thereafter, (ii) extended the maturity date of the credit facility to December 31, 2019, (iii) added customary provisions to reflect European Union “bail-in” directive compliance language, and (iv) modified the financial covenants applicable to the Company during the remaining term of the credit facility by (A) revising the maximum leverage ratio and minimum fixed charge coverage ratio and (B) adding an additional financial covenant requiring the Company to maintain a minimum amount of consolidated adjusted EBITDA. In addition, the applicable margin used to determine the interest rate per annum on outstanding borrowings under the credit facility, and the ongoing commitment fee payable on the unused portion of the revolving credit facility commitment, both of which previously had been fixed percentages per annum, have been amended and both now will vary based upon our quarterly leverage ratio calculation under the SunTrust credit facility. The applicable margin per annum on interest accruing on all borrowings under the credit facility outstanding on or after May 4, 2017, and the applicable percentage per annum commitment fee accruing on and after that date, respectively will be determined as follows: Pricing Level Leverage Ratio Applicable Margin for LIBOR Index Rate Loans Applicable Margin for Base Rate Loans Applicable Percentage for Commitment Fee I Less than 1.25:1.00 2.25% per annum 1.25% per annum 0.250% per annum II Greater than or equal to 1.25:1.00 but less than 1.75:1.00 2.50% per annum 1.50% per annum 0.375% per annum III Greater than or equal to 1.75:1.00 2.75% per annum 1.75% per annum 0.375% per annum |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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. 2017-04 - In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The standard removes the second step of the two step test used to determine an impairment of goodwill. Under the new standard, an entity only compares the fair value of the reporting unit to the carrying amount, including goodwill, and records the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard will become effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. FASB ASC Update No. 2016-02 - In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842). The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The standard requires lessors to classify leases as either sales-type, finance or operating. A sales-type lease occurs if the lessor transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. The standard will become effective for the Company beginning January 1, 2019. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for an entity to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In 2016, the FASB issued accounting standards updates to address implementation issues and to clarify the guidance for identifying performance obligations, licenses and determining if a company is the principal or agent in a revenue arrangement. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. We have substantially completed our evaluation of significant contracts and are currently assessing the impact of adopting the standards update on our consolidated financial statements. We will continue our evaluation of the standards update through the date of adoption. |
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 receivables, 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 record bank debt, if any, as of the period end date based on the effective borrowing rate and repayment terms when originated. As of March 31, 2017, we had $13.6 million in bank debt outstanding, and we had no bank debt outstanding as of March 31, 2016. We believe the carrying value of the bank debt approximates its fair value. We considered the factors used in determining the fair value of this debt to be Level 3 inputs (significant unobservable inputs). We had $4.0 million of business acquisition obligations as of March 31, 2017, and no such obligations as of March 31, 2016. Our business acquisition obligations represent the fair value of deferred consideration and earn-out payments estimated to be due as of the date for which we recorded these amounts. We determine the preliminary estimated fair values of business acquisition obligations based on our projections of future revenue and profits or other factors used in the calculation of the ultimate payment(s) to be made. The discount rate that we use to value the liability is based on specific business risk, cost of capital, and other factors. We consider these factors to be Level 3 inputs (significant unobservable inputs). We state certain assets at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States of America. Generally, these assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. |
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. |
Earnings (Loss) Per Common Sh18
Earnings (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 earnings (loss) per common share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data): Three Months Ended March 31, Basic earnings (loss) per common share: 2017 2016 Numerator: Net loss from continuing operations $ (1,847 ) $ (65 ) Net loss from discontinued operations $ (336 ) $ (487 ) Denominator: Weighted-average common shares outstanding 21,945 22,438 Basic loss per common share from continuing operations $ (0.08 ) $ — Basic loss per common share from discontinued operations $ (0.02 ) $ (0.02 ) Total basic loss per common share $ (0.10 ) $ (0.02 ) For all periods presented, basic and diluted net loss per share is the same, as any additional common stock equivalents would be anti-dilutive. We excluded 3.2 million of stock options from the weighted average diluted common shares outstanding for the three months ended March 31, 2017 and 2016 , respectively, which would have been anti-dilutive due to the net loss in those periods. In addition, we excluded 2.0 million and 1.8 million of restricted stock units from the calculation of weighted average diluted common shares outstanding for the three months ended March 31, 2017 and 2016 , respectively, which would have been anti-dilutive due to the net loss |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock options, activity | The following table summarizes stock option activity for the three months ended March 31, 2017 . Options Shares Weighted- Average Exercise Price (Per Share) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($ 000’s) Outstanding at January 1, 2017 3,420,385 $ 6.26 4.3 years $ 1,204 Granted (1) 143,750 5.94 Exercised (84,467 ) 4.52 $ 382 Forfeited (283,500 ) 6.20 Expired (2,500 ) 5.98 Outstanding at March 31, 2017 3,193,668 $ 6.30 4.2 years $ 1,633 Exercisable at March 31, 2017 2,158,893 $ 6.38 3.5 years $ 837 (1) During the three months ended March 31, 2017, 100,000 shares were granted to employees as inducements for employment and 43,750 shares were granted to a new member of the Board of Directors. The weighted-average grant date fair value of options granted was $3.31 per share for the three months ended March 31, 2017 . |
Summary of nonvested stock awards granted | The following table summarizes nonvested stock activity during the three months ended March 31, 2017 . Nonvested Stock Shares Weighted Average Grant Date Fair Value (Per Share) Nonvested at January 1, 2017 3,893,050 $ 4.37 Granted (1) 458,000 6.30 Vested — — Forfeited (2,358,060 ) 4.02 Nonvested at March 31, 2017 1,992,990 $ 4.73 (1) The weighted-average grant date fair value of nonvested stock awards (restricted stock and restricted stock units) granted during the three months ended March 31, 2017 was $6.30 |
Operating Segments and Relate20
Operating Segments and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of discontinued operations information | Discontinued operations information for the three months ended March 31, 2017 and 2016 is as follows: Results of Discontinued Operations Three Months Ended March 31, (in thousands) 2017 2016 Revenue, net $ — $ (11 ) Cost of sales 334 388 Selling, general and administrative expense — 84 Depreciation and amortization 2 4 Loss from discontinued operations before income taxes $ (336 ) $ (487 ) Income tax expense — — Net loss from discontinued operations $ (336 ) $ (487 ) |
Segment information | Segment information for the three months ended March 31, 2017 and 2016 (in thousands) is as follows: Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2017 Revenue $ 24,383 $ 7,831 $ 1,355 $ — $ 33,569 Net loss from continuing operations $ (1,847 ) Income tax expense 627 Interest expense (income), net 37 EBIT $ 5,986 $ 410 $ (1,740 ) $ (5,839 ) (1,183 ) Depreciation of property and equipment 910 140 170 — 1,220 Amortization of intangible assets 329 — 393 — 722 EBITDA $ 7,225 $ 550 $ (1,177 ) $ (5,839 ) $ 759 Other expense (income) — — (199 ) — (199 ) Foreign currency transaction (gains) losses on short-term intercompany balances (163 ) (252 ) (3 ) (134 ) (552 ) Transformation severance and related expenses 76 138 — 369 583 Stock-based compensation — — — 1,566 1,566 Adjusted EBITDA $ 7,138 $ 436 $ (1,379 ) $ (4,038 ) $ 2,157 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2016 Revenue $ 21,567 $ 9,249 $ 417 $ — $ 31,233 Net loss from continuing operations (65 ) Income tax expense 204 Interest expense (income), net (29 ) EBIT $ 3,997 $ 2,254 $ (1,086 ) $ (5,055 ) $ 110 Depreciation of property and equipment 992 98 142 — 1,232 Amortization of intangible assets 372 — 22 — 394 EBITDA $ 5,361 $ 2,352 $ (922 ) $ (5,055 ) $ 1,736 Other expenses (income) 10 10 Foreign currency transaction (gains) losses on short-term intercompany balances (257 ) (746 ) (1 ) (3 ) (1,007 ) Transformation severance and related expenses 144 71 — 310 525 Stock-based compensation — — — 773 773 Adjusted EBITDA $ 5,248 $ 1,677 $ (913 ) $ (3,975 ) $ 2,037 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of recognized identified assets acquired and liabilities assumed | The preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed is presented below: As of February 27, 2017 Accounts receivable $ 1,611 Goodwill 8,389 Total purchase price $ 10,000 |
Cost & Compliance Associates | |
Business Acquisition [Line Items] | |
Business acquisition, pro forma information | The revenue and earnings from continuing operations of C&CA from the acquisition date through March 31, 2017 are presented below and included in our consolidated statements of operations. These amounts are not necessarily indicative of the results of operations that C&CA would have realized if it had continued to operate as a stand-alone company during the period presented, primarily due to costs that are now reflected in our unallocated corporate costs and not allocated to C&CA. Revenue $ 1,467 Earnings from operations $ 776 As required by ASC 805, the following unaudited pro forma statements of operations for the three months ended March 31, 2017 and 2016 give effect to the C&CA acquisition as if it had been completed on January 1, 2016. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the periods presented had the C&CA acquisition been completed on January 1, 2016. In addition, the unaudited pro forma financial information does not purport to project future operating results. This information is preliminary in nature and subject to change based on final purchase price adjustments. The pro forma statements of operations do not reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the C&CA acquisition. Three months ended March 31, 2017 March 31, 2016 Revenue from continuing operations (pro forma) $ 34,408 $ 34,446 Income (loss) from continuing operations (pro forma) $ (2,522 ) $ 386 |
Lavante [Member] | |
Business Acquisition [Line Items] | |
Business acquisition, pro forma information | As required by ASC 805, the following unaudited pro forma statements of operations for the three months ended March 31, 2016 give effect to the Lavante acquisition as if it had been completed on January 1, 2016. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the period presented had the Lavante acquisition been completed on January 1, 2016. In addition, the unaudited pro forma financial information does not purport to project future operating results. This information is preliminary in nature and subject to change based on final purchase price adjustments. The pro forma statements of operations do not reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the Lavante acquisition. March 31, 2016 Revenue from continuing operations (pro forma) $ 31,888 Loss from continuing operations (pro forma) $ (1,578 ) |
Schedule of finite-lived intangible assets acquired as part of business combination | Our estimates of the fair values of identifiable intangible assets are presented below: Fair values at October 31, 2016 Remaining useful lives (in months) Trademarks $ 163 48 Patents 114 12 Software 5,901 48 Total intangible assets $ 6,178 |
Subsequent Events - (Tables)
Subsequent Events - (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Schedule of Debt Terms | The applicable margin per annum on interest accruing on all borrowings under the credit facility outstanding on or after May 4, 2017, and the applicable percentage per annum commitment fee accruing on and after that date, respectively will be determined as follows: Pricing Level Leverage Ratio Applicable Margin for LIBOR Index Rate Loans Applicable Margin for Base Rate Loans Applicable Percentage for Commitment Fee I Less than 1.25:1.00 2.25% per annum 1.25% per annum 0.250% per annum II Greater than or equal to 1.25:1.00 but less than 1.75:1.00 2.50% per annum 1.50% per annum 0.375% per annum III Greater than or equal to 1.75:1.00 2.75% per annum 1.75% per annum 0.375% per annum |
Earnings (Loss) Per Common Sh23
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss from continuing operations | $ (1,847) | $ (65) |
Net loss from discontinued operations | $ (336) | $ (487) |
Denominator: | ||
Weighted-average common shares outstanding (shares) | 21,945 | 22,438 |
Basic loss per common share from continuing operations (in usd per share) | $ (0.08) | $ 0 |
Basic loss per common share from discontinued operations (in usd per share) | (0.02) | (0.02) |
Total basic loss per common share (in dollars per share) | $ (0.10) | $ (0.02) |
Earnings (Loss) Per Common Sh24
Earnings (Loss) Per Common Share - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share and Other Significant Changes in Shares [Line Items] | ||
Amount of shares repurchased (shares) | 0 | 663,541 |
Amount of shares repurchased | $ 2.6 | |
Amount of shares issued (shares) | 84,467 | 46,896 |
Amount of shares issued | $ 0.4 | $ 0.1 |
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) | 3,200,000 | 3,200,000 |
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) | 2,000,000 | 1,800,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)compensation_plan | Mar. 31, 2016USD ($) | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of stock-based compensation plans | compensation_plan | 1,000 | |
Allocated share-based compensation expense | $ 1.6 | $ 0.8 |
Nonvested awards compensation costs not yet recognized | $ 6.7 | |
2008 Equity Incentive Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Nonvested awards, compensation costs not yet recognized, period for recognition | 1 year 4 months 24 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Options, grants in period, weighted average grant date fair value (in dollars per share) | $ 3.31 | |||
Options outstanding rollforward | ||||
Outstanding at January 1, 2017 (in shares) | 3,193,668 | 3,420,385 | 3,193,668 | 3,420,385 |
Granted (in shares) | 143,750 | |||
Exercised (in shares) | 84,467 | |||
Forfeited (in shares) | 283,500 | |||
Expired (in shares) | 2,500 | |||
Outstanding at March 31, 2017 (in shares) | 3,193,668 | 3,420,385 | ||
Exercisable at March 31, 2017 (in shares) | 2,158,893 | |||
Options, weighted average exercise price | ||||
Outstanding at January 1, 2017 (in dollars per share) | $ 6.30 | $ 6.26 | ||
Granted (in dollars per share) | $ 5.94 | |||
Exercised (in dollars per share) | 4.52 | |||
Forfeited (in dollars per share) | 6.20 | |||
Expired (in dollars per share) | $ 5.98 | |||
Exercisable at March 31, 2017 (in dollars per share) | $ 6.38 | |||
Options Intrinsic Value | ||||
Options outstanding at January 1, 2017, intrinsic value (in dollars per share) | $ 1,204 | |||
Options, exercised, intrinsic value (in dollars per share) | 382 | |||
Options outstanding at March 31, 2017, intrinsic value (in dollars per share) | $ 1,633 | $ 1,204 | ||
Options exercisable, at March 31, 2017, intrinsic value (in dollars per share) | $ 837 | |||
Options additional disclosures | ||||
Outstanding as of March 31, 2017, weighted average remaining contractual term (in years) | 4 years 2 months 12 days | 4 years 3 months 18 days | ||
Outstanding as of January 1, 2017, weighted average remaining contractual term (in years) | 4 years 2 months 12 days | 4 years 3 months 18 days | ||
Weighted average remaining contractual term, options exercisable (in dollars per share) | 3 years 6 months | |||
Equity Incentive Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Stock options expiration period | 7 years | |||
Employee [Member] | ||||
Options outstanding rollforward | ||||
Granted (in shares) | 100,000 | |||
Employee Group [Member] | Equity Incentive Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Stock options vesting period | 3 years | |||
Director [Member] | ||||
Options outstanding rollforward | ||||
Granted (in shares) | 43,750 | |||
Director [Member] | Equity Incentive Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Stock options vesting period | 1 year |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Stock Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
2008 Equity Incentive Plan [Member] | Employees [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Stock options vesting period | 3 years | |
2008 Equity Incentive Plan [Member] | Director [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Stock options vesting period | 1 year | |
Restricted Stock and Restricted Stock Units [Member] | ||
Summary of nonvested stock awards activity | ||
Nonvested at January 1, 2017 (in shares) | 3,893,050 | |
Granted (in shares) | 458,000 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 2,358,060 | |
Nonvested at March 31, 2017 (in shares) | 1,992,990 | |
Summary of nonvested stock awards activity, weighted average grant date fair value | ||
Nonvested at January 1, 2017 (in dollars per share) | $ 4.73 | $ 4.37 |
Granted (in dollars per share) | 6.30 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 4.02 | |
Nonvested at March 31, 2017 (in dollars per share) | $ 4.73 | |
Restricted Stock and Restricted Stock Units [Member] | Employees [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Stock options vesting period | 3 years | |
Restricted Stock and Restricted Stock Units [Member] | Director [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Stock options vesting period | 1 year |
Stock-based Compensation - PBUs
Stock-based Compensation - PBUs (Details) | Mar. 30, 2017executive_officeremployeeshares | Mar. 31, 2017shares |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 143,750 | |
Executive Officer [Member] | Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of officers | executive_officer | 6 | |
Senior Business Leader [Member] | Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of employees | employee | 6,000 | |
Executive Officers And Senior Leaders [Member] | Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based units granted (in shares) | 274,800 | |
Percentage of performance units in equity (percent) | 100.00% | |
Threshold Performance Level [Member] | Executive Officers And Senior Leaders [Member] | Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, award vesting rights, percentage | 35.00% | |
Vesting Period | P2Y | |
Maximum Performance Level [Member] | Executive Officers And Senior Leaders [Member] | Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, award vesting rights, percentage | 100.00% |
Operating Segments and Relate29
Operating Segments and Related Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Operating Segments and Relate30
Operating Segments and Related Information - Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
Revenue, net | $ 0 | $ (11) |
Cost of sales | 334 | 388 |
Selling, general and administrative expense | 0 | 84 |
Depreciation and amortization | 2 | 4 |
Loss from discontinued operations before income taxes | (336) | (487) |
Income tax expense | 0 | 0 |
Net loss from discontinued operations | $ (336) | $ (487) |
Operating Segments and Relate31
Operating Segments and Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment information | ||
Revenue | $ 33,569 | $ 31,233 |
Net loss from continuing operations | (1,847) | (65) |
Income tax expense | 627 | 204 |
Interest expense (income), net | 37 | (29) |
EBIT | (1,183) | 110 |
Depreciation of property and equipment | 1,220 | 1,232 |
Amortization of intangible assets | 722 | 394 |
EBITDA | 759 | 1,736 |
Other expense (income) | (199) | 10 |
Foreign currency transaction (gains) losses on short-term intercompany balances | (552) | (1,007) |
Transformation severance and related expenses | 583 | 525 |
Stock-based compensation | 1,566 | 773 |
Adjusted EBITDA | 2,157 | 2,037 |
Recovery Audit Services - Americas [Member] | ||
Segment information | ||
Revenue | 24,383 | 21,567 |
EBIT | 5,986 | 3,997 |
Depreciation of property and equipment | 910 | 992 |
Amortization of intangible assets | 329 | 372 |
EBITDA | 7,225 | 5,361 |
Other expense (income) | 0 | |
Foreign currency transaction (gains) losses on short-term intercompany balances | (163) | (257) |
Transformation severance and related expenses | 76 | 144 |
Stock-based compensation | 0 | 0 |
Adjusted EBITDA | 7,138 | 5,248 |
Recovery Audit Services - Europe/Asia-Pacific [Member] | ||
Segment information | ||
Revenue | 7,831 | 9,249 |
EBIT | 410 | 2,254 |
Depreciation of property and equipment | 140 | 98 |
Amortization of intangible assets | 0 | 0 |
EBITDA | 550 | 2,352 |
Other expense (income) | 0 | |
Foreign currency transaction (gains) losses on short-term intercompany balances | (252) | (746) |
Transformation severance and related expenses | 138 | 71 |
Stock-based compensation | 0 | 0 |
Adjusted EBITDA | 436 | 1,677 |
Adjacent Services [Member] | ||
Segment information | ||
Revenue | 1,355 | 417 |
EBIT | (1,740) | (1,086) |
Depreciation of property and equipment | 170 | 142 |
Amortization of intangible assets | 393 | 22 |
EBITDA | (1,177) | (922) |
Other expense (income) | (199) | 10 |
Foreign currency transaction (gains) losses on short-term intercompany balances | (3) | (1) |
Transformation severance and related expenses | 0 | 0 |
Stock-based compensation | 0 | 0 |
Adjusted EBITDA | (1,379) | (913) |
Corporate Support [Member] | ||
Segment information | ||
EBIT | (5,839) | (5,055) |
Depreciation of property and equipment | 0 | 0 |
Amortization of intangible assets | 0 | 0 |
EBITDA | (5,839) | (5,055) |
Other expense (income) | 0 | |
Foreign currency transaction (gains) losses on short-term intercompany balances | (134) | (3) |
Transformation severance and related expenses | 369 | 310 |
Stock-based compensation | 1,566 | 773 |
Adjusted EBITDA | $ (4,038) | $ (3,975) |
Debt (Details)
Debt (Details) | Feb. 27, 2017USD ($) | Oct. 31, 2016USD ($) | Dec. 23, 2014USD ($)covenant | Jan. 17, 2014USD ($) | Jan. 19, 2010USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2013 | Jan. 01, 2019USD ($) | Dec. 22, 2017USD ($) | May 04, 2017USD ($) | May 03, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | |||||||||||||||
Proceeds from term loan | $ 10,000,000 | $ 0 | |||||||||||||
SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Credit facility, term | 4 years | ||||||||||||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.50% | ||||||||||||||
Line of Credit [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Maximum borrowing capacity of credit facility | $ 20,000,000 | ||||||||||||||
Debt instrument, variable interest rate, term | 1 month | ||||||||||||||
Applicable margin (percent) | 1.75% | ||||||||||||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.25% | ||||||||||||||
Interest rate during period | 2.53% | ||||||||||||||
Sun Trust Revolving Credit Facility [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Proceeds from term loan | $ 10,000,000 | $ 3,600,000 | |||||||||||||
Amount of line of credit outstanding | $ 13,600,000 | ||||||||||||||
Sun Trust Revolving Credit Facility [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Maximum borrowing capacity of credit facility | $ 20,000,000 | $ 25,000,000 | $ 15,000,000 | $ 25,000,000 | |||||||||||
Debt instrument, variable interest rate, term | 1 month | ||||||||||||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.25% | 0.50% | |||||||||||||
Long-term debt, percentage bearing fixed interest, percentage rate | 1.75% | ||||||||||||||
Number of debt covenants | covenant | 2 | ||||||||||||||
Debt instrument, term of debt covenants to apply | 30 days | ||||||||||||||
Sun Trust Term Loan [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, face amount | 15,000,000 | ||||||||||||||
Debt instrument, periodic payment, principal | $ 800,000 | ||||||||||||||
Debt instrument, financial principal payment | $ 3,000,000 | ||||||||||||||
Long-term debt, weighted average interest rate | 0.25% | 25000.00% | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, variable interest rate, term | 1 month | ||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Sun Trust Revolving Credit Facility [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Applicable margin (percent) | 1.75% | ||||||||||||||
Minimum [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Applicable margin (percent) | 2.25% | ||||||||||||||
Maximum [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Applicable margin (percent) | 3.50% | ||||||||||||||
Subsequent Event [Member] | Sun Trust Revolving Credit Facility [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Maximum borrowing capacity of credit facility | $ 35,000,000 | $ 20,000,000 | |||||||||||||
Scenario, Forecast [Member] | Sun Trust Revolving Credit Facility [Member] | SunTrust Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Maximum borrowing capacity of credit facility | $ 30,000,000 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Fair Value of Financial Instruments (Textual) [Abstract] | |||
Business acquisition obligations | $ 2,076,000 | $ 2,078,000 | |
Bank Loan Obligations [Member] | |||
Fair Value of Financial Instruments (Textual) [Abstract] | |||
Fair value of long term debt | 13,600,000 | $ 0 | |
Business Acquisition Obligations [Member] | |||
Fair Value of Financial Instruments (Textual) [Abstract] | |||
Business acquisition obligations | $ 4,000,000 | $ 0 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) | Oct. 31, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 22,364,000 | $ 13,823,000 | |||
Cost & Compliance Associates | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 10,000,000 | ||||
Total purchase price | $ 10,000,000 | ||||
Goodwill | $ 8,400,000 | ||||
Business Combination, Contingent Consideration, Earn-out Period | 2 years | ||||
Business Combination, Maximum Consideration to be Transferred | $ 18,000,000 | ||||
Lavante [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 3,800,000 | ||||
Total purchase price | 3,809,000 | ||||
Goodwill | $ 2,286,000 |
Business Acquisitions Fair Valu
Business Acquisitions Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Oct. 31, 2016 | Feb. 29, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 22,364,000 | $ 13,823,000 | ||
Lavante [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 28,000 | |||
Accounts receivable | 207,000 | |||
Goodwill | 2,286,000 | |||
Other Current assets | 92,000 | |||
Intangible assets | 6,178,000 | |||
Fixed assets | 98,000 | |||
Total assets | 8,889,000 | |||
Accounts payable | 121,000 | |||
Deferred revenue | 370,000 | |||
Other current liabilities | 757,000 | |||
Total liabilities | 1,248,000 | |||
Total purchase price | 3,809,000 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | |||
Deferred Tax Assets, Goodwill and Intangible Assets | $ 0 | |||
Cost & Compliance Associates | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 1,611,000 | |||
Goodwill | 8,400,000 | |||
Total purchase price | $ 10,000,000 |
Business Acquisitions Acquisiti
Business Acquisitions Acquisition Revenue and Earnings From Operations Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 14 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | |
Cost & Compliance Associates | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Proforma information, revenue of acquiree since acquisition date, actual | $ 1,467 | ||
Pro forma revenue | $ 34,408 | $ 34,446 | |
Pro forma net income (loss) | $ (2,522) | 386 | |
Pro forma, earnings or loss of acquiree since acquisition date, actual | $ 776 | ||
Lavante [Member] | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Pro forma revenue | 31,888 | ||
Pro forma net income (loss) | $ (1,578) |
Business Acquisitions Summary o
Business Acquisitions Summary of Intangible Assets Acquired (Details) - Lavante [Member] $ in Thousands | Oct. 31, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 6,178 |
Developed Technology Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 5,901 |
Intangible assets acquired weighted average useful life | 48 months |
Patents [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 114 |
Intangible assets acquired weighted average useful life | 12 months |
Trademarks [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 163 |
Intangible assets acquired weighted average useful life | 48 months |
Subsequent Events (Details)
Subsequent Events (Details) - SunTrust Bank [Member] | May 04, 2017USD ($) | Dec. 23, 2014USD ($) | Dec. 31, 2013 | Jan. 01, 2019USD ($) | Dec. 22, 2017USD ($) | May 03, 2017USD ($) | Jan. 17, 2014USD ($) | Jan. 19, 2010USD ($) |
Sun Trust Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 20,000,000 | $ 25,000,000 | $ 25,000,000 | $ 15,000,000 | ||||
Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 35,000,000 | $ 20,000,000 | ||||||
Scenario, Forecast [Member] | Sun Trust Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity of credit facility | $ 30,000,000 | |||||||
Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 2.25% | |||||||
Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 3.50% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Sun Trust Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 1.75% | |||||||
Pricing Level One | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Leverage ratio | 1.25 | |||||||
Line of credit facility, commitment fee percentage | 0.25% | |||||||
Pricing Level One | London Interbank Offered Rate (LIBOR) [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 2.25% | |||||||
Pricing Level One | Base Rate [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 1.25% | |||||||
Pricing Level Two | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of credit facility, commitment fee percentage | 0.375% | |||||||
Pricing Level Two | Minimum [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Leverage ratio | 1.25 | |||||||
Pricing Level Two | Maximum [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Leverage ratio | 1.75 | |||||||
Pricing Level Two | London Interbank Offered Rate (LIBOR) [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 2.50% | |||||||
Pricing Level Two | Base Rate [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 1.50% | |||||||
Pricing Level Three | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Leverage ratio | 1.75 | |||||||
Line of credit facility, commitment fee percentage | 0.375% | |||||||
Pricing Level Three | London Interbank Offered Rate (LIBOR) [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 2.75% | |||||||
Pricing Level Three | Base Rate [Member] | Sun Trust Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Applicable margin (percent) | 1.75% |