PRGX Global (PRGX) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 03, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	PRGX GLOBAL, INC.
Entity Central Index Key	0001007330
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,571,201
Entity Small Business	true
Entity Emerging Growth Company	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue, net	$ 38,804	$ 36,721
Operating expenses:
Cost of revenue	25,235	24,797
Selling, general and administrative expenses	13,917	11,264
Depreciation of property, equipment and software assets	2,203	1,223
Amortization of intangible assets	862	788
Total operating expenses	42,217	38,072
Operating loss from continuing operations	(3,413)	(1,351)
Foreign currency transaction losses (gains) on short-term intercompany balances	206	(220)
Interest expense, net	473	398
Other (income) loss	(19)	12
Loss from continuing operations before income tax	(4,073)	(1,541)
Income tax expense	168	787
Net loss from continuing operations	(4,241)	(2,328)
Discontinued operations:
Loss from discontinued operations	(155)	(333)
Income tax expense	0	0
Net loss from discontinued operations	(155)	(333)
Net loss	$ (4,396)	$ (2,661)
Basic loss per common share (Note 2):
Basic income (loss) from continuing operations (in usd per share)	$ (0.19)	$ (0.10)
Basic income (loss) from discontinued operations (in usd per share)	(0.01)	(0.01)
Total basic income (loss) per common share (in usd per share)	(0.20)	(0.11)
Diluted loss per common share (Note 2):
Diluted income (loss) from continuing operations (in usd per share)	(0.19)	(0.10)
Diluted loss from discontinued operations (in usd per share)	(0.01)	(0.01)
Total diluted income (loss) per common share (in usd per share)	$ (0.20)	$ (0.11)
Weighted-average common shares outstanding (Note 2):
Basic (shares)	22,610	22,573
Diluted (shares)	22,610	22,573

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net loss	$ (4,396)	$ (2,661)
Foreign currency translation adjustments	513	275
Comprehensive loss	$ (3,883)	$ (2,386)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 12,187	$ 13,973
Restricted cash	99	46
Contract receivables, less allowances of $1,136 in 2019 and $1,024 in 2018
Billed	39,729	43,878
Unbilled	2,741	2,987
Receivables Net	42,470	46,865
Employee advances and miscellaneous receivables, less allowances of $266 in 2019 and $176 in 2018	601	567
Total receivables	43,071	47,432
Prepaid expenses and other current assets	2,176	3,144
Total current assets	57,533	64,595
Property, equipment and software	67,492	65,252
Less accumulated depreciation	(44,988)	(43,224)
Property, equipment and software, net	22,504	22,028
Operating lease right-of-use assets (Note 9)	13,268
Goodwill	17,570	17,531
Intangible assets, less accumulated amortization of $44,424 in 2019 and $43,370 in 2018	14,137	14,945
Unbilled receivables	915	1,608
Deferred income taxes	3,542	3,561
Other assets	565	561
Total assets	130,034	124,829
Current liabilities:
Accounts payable and accrued expenses	2,641	7,515
Accrued payroll and related expenses	10,093	15,073
Current portion of operating lease liabilities (Note 9)	4,530
Refund liabilities	6,044	6,497
Deferred revenue	2,388	2,428
Current portion of debt (Note 5)	48	48
Current portion of long-term incentive compensation liability	15
Business acquisition obligations (Note 6)	3,843	4,162
Total current liabilities	29,602	35,723
Long-term debt (Note 5)	29,661	21,553
Long-term operating lease liabilities (Note 9)	8,786
Refund liabilities	42	100
Deferred income taxes (Note 8)	666	666
Other long-term liabilities	47	458
Total liabilities	68,804	58,500
Commitments and contingencies (Note 7)
Shareholders’ equity (Note 2):
Common stock, no par value; $.01 stated value per share. Authorized 50,000,000 shares; 23,438,058 shares issued and outstanding at March 31, 2019 and 23,186,258 shares issued and outstanding at December 31, 2018	234	232
Additional paid-in capital	581,356	582,574
Accumulated deficit	(519,852)	(515,456)
Accumulated other comprehensive loss	(508)	(1,021)
Total shareholders’ equity	61,230	66,329
Total liabilities and shareholders' equity	$ 130,034	$ 124,829

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowances for contract receivables	$ 1,136	$ 1,024
Allowances for employee advances and miscellaneous receivables	266	176
Accumulated amortization on intangible assets	$ 44,424	$ 43,370
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)	23,438,058	23,186,258
Common stock, shares outstanding (shares)	23,438,058	23,186,258

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive (Loss) Income [Member]
Beginning balance (shares) at Dec. 31, 2017		22,419,417
Beginning balance at Dec. 31, 2017	$ 60,314	$ 224	$ 580,032	$ (520,049)	$ 107
Increase (Decrease) in Stockholders' Equity
Net loss	(2,661)			(2,661)
Foreign currency translation adjustments	275				275
Issuances of common stock:
Restricted share awards (shares)		20,500
Restricted shares remitted by employees for taxes (shares)		(134,993)
Restricted shares remitted by employees for taxes	(1,088)	$ (1)	(1,087)
Stock option exercises (shares)		327,072
Stock option exercises	$ 2,260	$ 3	2,257
Performance-based restricted stock unit settlement (shares)	483,623
Performance-based restricted stock unit settlement	$ 0	$ 5	(5)
Restricted stock unit settlement (shares)		9,998
Forfeited restricted share awards (shares)		(31,000)
Stock-based compensation expense	701		701
Ending balance (shares) at Mar. 31, 2018		23,094,617
Ending balance at Mar. 31, 2018	$ 59,801	$ 231	581,898	(522,710)	382
Beginning balance (shares) at Dec. 31, 2018	23,186,258	23,186,258
Beginning balance at Dec. 31, 2018	$ 66,329	$ 232	582,574	(515,456)	(1,021)
Increase (Decrease) in Stockholders' Equity
Net loss	(4,396)			(4,396)
Foreign currency translation adjustments	513				513
Issuances of common stock:
Restricted share awards (shares)		333,552
Restricted share awards	0	$ 3	(3)
Restricted shares remitted by employees for taxes (shares)		(61,581)
Restricted shares remitted by employees for taxes	(504)	$ (1)	(503)
Stock option exercises (shares)		10,061
Stock option exercises	$ 51		51
Performance-based restricted stock unit settlement (shares)	203,524
Performance-based restricted stock unit settlement		$ 2	(2)
Restricted stock unit settlement (shares)		9,999
Repurchase of common stock (shares)		(243,755)
Repurchase of common stock	$ (2,228)	$ (2)	(2,226)
Stock-based compensation expense	$ 1,465		1,465
Ending balance (shares) at Mar. 31, 2019	23,438,058	23,438,058
Ending balance at Mar. 31, 2019	$ 61,230	$ 234	$ 581,356	$ (519,852)	$ (508)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (4,396)	$ (2,661)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization	3,065	2,011
Operating lease right-of-use asset expense	1,135
Amortization of deferred loan costs	56	8
Noncash interest expense	0	278
Stock-based compensation expense	1,384	1,945
Foreign currency transaction losses (gains) on short-term intercompany balances	206	(220)
Deferred income taxes	0	169
Changes in operating assets and liabilities
Restricted cash	(53)	(61)
Billed receivables	4,413	5,944
Unbilled receivables	939	(44)
Prepaid expenses and other current assets	516	369
Other assets	(12)	16
Accounts payable and accrued expenses	(3,048)	(1,645)
Accrued payroll and related expenses	(4,938)	(4,060)
Refund liabilities	(537)	144
Deferred revenue	(45)	300
Long-term incentive compensation payout	0	(5,380)
Operating lease liabilities	(1,093)
Other long-term liabilities	0	(82)
Net cash used in operating activities	(2,408)	(2,969)
Cash flows from investing activities:
Business acquisition, net of cash acquired	0	19
Purchases of property, equipment and software, net of disposal proceeds	(4,441)	(2,520)
Net cash used in investing activities	(4,441)	(2,501)
Cash flows from financing activities:
Repayments of credit facility	0	(1,500)
Proceeds from credit facility	8,400	1,500
Payment of deferred loan costs	(347)	0
Payment of earnout liability related to business acquisitions	(479)	0
Restricted stock repurchased from employees for withholding taxes	(504)	(1,088)
Payments for Repurchase of Common Stock	(2,228)	0
Proceeds from option exercises	51	2,260
Net cash provided by financing activities	4,893	1,172
Effect of exchange rates on cash and cash equivalents	170	423
Net decrease in cash and cash equivalents	(1,786)	(3,875)
Cash and cash equivalents at beginning of period	13,973	18,823
Cash and cash equivalents at end of period	12,187	14,948
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	325	141
Cash paid during the period for income taxes, net of refunds received	$ 779	$ 529

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
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 ("GAAP") for interim financial information and with the instructions for the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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 the related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , except for the Company’s lease policy which has been revised as a result of the implementation of a new standard effective January 1, 2019. Significant Accounting Policies Leases The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property, equipment and software, net. All other leases are categorized as operating leases. The Company’s leases generally have terms that range from two to five years for equipment and two to ten years for real property. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. For leases of real property, the Company accounts for these other services as a component of the lease. For substantially all other leases, the services are accounted for separately and the Company allocates payments to the lease and other services components based on estimated stand-alone prices. Lease liabilities are recognized at the present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to the Company. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the leases. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term. When the Company has the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that the Company will exercise the option, the Company considers these options in determining the classification and measurement of the lease. The Company’s leases may include variable payments based on measures that include changes in price indices, which are expensed as incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. Impact of Recently Issued 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 included below: Adopted by the Company in Fiscal Year 2019 In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach provided by ASU 2018-11. The Company elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classifications. The Company also elected the short-term lease practical expedient, which allowed the Company to not recognize leases with a term of less than twelve months on our consolidated balance sheets. In addition, the Company elected the lease and non-lease components practical expedient, for real property assets, which allowed us to calculate the present value of the fixed payments without performing an allocation of lease and non-lease components. Adoption of the new standard resulted in recording operating lease right-of-use assets and operating lease liabilities of approximately $14.4 million , with no material cumulative effect adjustment to retained earnings as of the date of adoption. The adoption of this standard did not have a material impact on our consolidated statements of operations or cash flows. Operating leases are included in Operating lease right-of-use assets , Current portion of operating lease liabilities and Long-term operating lease liabilities on the Company's Condensed Consolidated Balance Sheet. Accounting Standards Not Yet Adopted FASB ASU 2018-13 - In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) ) : Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The new guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Upon the effective date, certain provisions are to be applied prospectively, while others are to be applied retrospectively to all periods presented. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We are currently evaluating the effect of this standard on our consolidated financial statement disclosures. Since this standard only affects disclosure requirements, it is not expected to have an impact on the Company's consolidated financial statements.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share The following table sets forth the computations of basic and diluted net loss per common share for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net loss from continuing operations $ (4,241 ) $ (2,328 ) Net loss from discontinued operations $ (155 ) $ (333 ) Denominator: Weighted-average common shares outstanding 22,610 22,573 Basic and diluted net loss per common share from continuing operations $ (0.19 ) $ (0.10 ) Basic and diluted net loss per common share from discontinued operations (0.01 ) (0.01 ) Total basic and diluted net loss per common share $ (0.20 ) $ (0.11 ) Anti-dilutive securities awarded under equity compensation plans excluded from diluted net loss per share calculation 4,139 1,466

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company has two stock-based compensation plans under which outstanding equity awards have been granted, the 2008 Equity Incentive Plan ("2008 EIP") and the 2017 Equity Incentive Compensation Plan ("2017 EICP") (collectively, the "Plans"). No additional awards may be granted under the 2008 EIP. Awards granted outside of the Plans are referred to as inducement awards. During the three months ended March 31, 2019, equity awards were granted to certain key employees. The awards included stock options and nonvested stock awards (restricted stock, restricted stock units, and performance-based restricted stock units ("PBUs")). Summary of Grant Activity The following is a summary of grant activity for the three months ended March 31, 2019 (in thousands, except number of awards): Three Months Ended March 31, 2019 # of Awards Granted Grant Date Fair Value Stock options 190,000 $ 551 Restricted stock 333,552 2,824 Restricted stock units 34,000 273 PBUs 19,377 174 576,929 $ 3,822 The awards granted in the three months ended March 31, 2019 had the following terms: • The stock options vest over three years in approximately equal annual installments commencing one year after the grant date. • 130,436 shares of the restricted stock vest over three years in approximately equal annual installments and 237,116 shares of the restricted stock vest one year from the grant date. • The restricted stock units vest one year from the grant date. • The vesting of the PBUs is subject to the satisfaction of certain specified financial performance conditions for the two -year performance period ending on December 31, 2019. PBUs that vest will be settled in shares of the Company's common stock. Stock-based compensation expense for these PBUs is being recognized at the target level of financial performance, as if 100% of the awards will vest. Additional Information As of March 31, 2019 , there were approximately 2.6 million shares available for future grant under the 2017 EICP. Stock-based compensation expense for the three months ended March 31, 2019 and 2018 was $1.4 million and $1.9 million , respectively and is included in Selling, general and administrative expenses in the Company's Condensed Consolidated Statement of Operations. As of March 31, 2019 , there was $9.4 million of unrecognized stock-based compensation expense related to the Company's outstanding equity awards which will be recognized over approximately 1.8 years . During the three months ended March 31, 2019, the Company issued 203,524 shares of common stock related to the vesting of PBU awards granted in 2017 and 2018.

Operating Segments and Related

Operating Segments and Related Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Operating Segments and Related Information	Operating Segments and Related Information The Company conducts its 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 ® , supplier information management ("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. Discontinued Operations As of December 31, 2015, the Company discontinued its Healthcare Claims Recovery Audit ("HCRA") services business. 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. One of the third-party Medicare RAC-related contracts has been settled and the results are reflected in these financial statements. The Company will continue to incur certain expenses until the remaining Medicare RAC contracts are concluded. Associated with the discontinued HCRA services business, the Company has an accrued liability for outstanding Medicare RAC appeals of approximately $2.0 million and a receivable of approximately $1.7 million for unpaid claims as of March 31, 2019 . The HCRA services business is reported as Discontinued Operations in accordance with GAAP. The following table presents the discontinued operations of the HCRA services business in the Consolidated Statement of Operations, for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Revenue, net $ — $ — Cost of sales 149 329 Selling, general and administrative expense 6 3 Depreciation and amortization — 1 Loss from discontinued operations before income taxes $ (155 ) $ (333 ) Income tax expense — — Net loss from discontinued operations $ (155 ) $ (333 ) The following table presents the discontinued operations of the HCRA services business in the Consolidated Statements of Cash Flows, for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Net cash used in operating activities $ (155 ) $ (332 ) Net cash used in investing activities — — Net cash provided by financing activities — — Decrease in cash and cash equivalents $ (155 ) $ (332 ) The Company evaluates the performance of its reportable segments based upon revenue and measures of profit or loss referred to as EBITDA and Adjusted EBITDA. The Company defines 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. The Company does not have any inter-segment revenue. Segment information for the three months ended March 31, 2019 and 2018 (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, 2019 Revenue, net $ 27,373 $ 9,759 $ 1,672 $ — $ 38,804 Net loss from continuing operations (4,241 ) Income tax expense 168 Interest expense, net 473 EBIT $ 6,004 $ 313 $ (2,145 ) $ (7,772 ) $ (3,600 ) Depreciation of property, equipment and software 1,762 162 279 — 2,203 Amortization of intangible assets 438 37 387 — 862 EBITDA $ 8,204 $ 512 $ (1,479 ) $ (7,772 ) $ (535 ) Other loss (income) — 9 — (28 ) (19 ) Foreign currency transaction (gains) losses on short-term intercompany balances (73 ) 399 (6 ) (114 ) 206 Transformation, severance, and other expenses 128 123 18 428 697 Stock-based compensation — — — 1,384 1,384 Adjusted EBITDA $ 8,259 $ 1,043 $ (1,467 ) $ (6,102 ) $ 1,733 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2018 Revenue, net $ 25,958 $ 10,027 $ 736 $ — $ 36,721 Net loss from continuing operations (2,328 ) Income tax expense 787 Interest expense, net 398 EBIT $ 5,725 $ 1,548 $ (1,721 ) $ (6,695 ) $ (1,143 ) Depreciation of property, equipment and software 897 142 184 — 1,223 Amortization of intangible assets 337 61 390 — 788 EBITDA $ 6,959 $ 1,751 $ (1,147 ) $ (6,695 ) $ 868 Other loss (income) — 49 — (37 ) 12 Foreign currency transaction losses (gains) on short-term intercompany balances 57 (229 ) (9 ) (39 ) (220 ) Transformation, severance, and other expenses 63 543 68 — 674 Stock-based compensation — — — 1,945 1,945 Adjusted EBITDA $ 7,079 $ 2,114 $ (1,088 ) $ (4,826 ) $ 3,279

Debt

Debt	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Debt	Debt On March 14, 2019, the Company, as co-borrower with PRGX USA, Inc. (“PRGX-USA”), a wholly owned subsidiary that is the Company’s principal domestic operating subsidiary, entered into a five -year Credit Agreement (the “BOA Credit Facility”) with Bank of America, N.A. (“BOA”), and Synovus Bank as the initial lenders thereunder, and with BOA as the letter-of-credit issuer thereunder, as the swingline lender thereunder, and as the administrative agent (the “Administrative Agent”) for the lenders from time to time party thereto. The BOA Credit Facility consists of a $60.0 million senior revolving credit facility (the “Revolver”), with a $5.0 million subfacility for the issuance of letters of credit, and a $5.0 million swingline loan subfacility (the “Swingline Loan”). The BOA Credit Facility is guaranteed by each of PRGX’s direct and indirect domestic wholly owned subsidiaries (other than PRGX-USA), except for certain immaterial domestic subsidiaries. None of PRGX’s direct or indirect foreign subsidiaries has guaranteed the BOA Credit Facility. The BOA Credit Facility is secured by substantially all of the assets of PRGX, PRGX-USA and each guarantor (including the equity interests in substantially all of the Company’s domestic subsidiaries and up to sixty-five percent ( 65% ) of the equity interests of certain of the Company’s first-tier material foreign subsidiaries). In connection with the closing of the BOA Credit Facility, PRGX borrowed $30.0 million under the Revolver, substantially all of which was used to prepay in full the approximately $29.0 million in outstanding indebtedness owed to the lenders under PRGX’s pre-existing Amended & Restated Revolving Credit Agreement, dated December 23, 2014, as amended from time to time, by and among PRGX, PRGX-USA, the several banks and other financial institutions and lenders from time to time party thereto and SunTrust Bank, in its capacity as administrative agent for the lenders (the "SunTrust Credit Facility"), and to terminate that prior credit facility in its entirety. There were no early termination penalties associated with the termination of the SunTrust Credit Facility. The BOA Credit Facility will mature on March 14, 2024. Interest is payable quarterly in arrears. There are no prepayment penalties in the event the Company elects to prepay and terminate the BOA Credit Facility prior to its scheduled maturity date, subject to breakage and redeployment costs in certain limited circumstances. The Revolver bears interest at a rate per annum comprised of a specified index rate based on LIBOR plus an applicable interest rate margin determined under the BOA Credit Facility. For U.S. Dollar denominated loans under the Revolver, at the option of the Borrowers, such loans shall bear interest at a rate per annum equal to (x) the LIBOR daily floating rate plus an applicable interest rate margin determined under the BOA Credit Facility or (y) the base rate plus the applicable interest rate margin, each as determined under the BOA Credit Facility. Although the Company does not anticipate the need for Swingline Loans, were any Swingline Loans to be made they would bear interest at the base rate plus the applicable interest rate margin for base rate loans, each as determined under the BOA Credit Facility. The applicable interest rate margin varies from 1.50% per annum to 2.25% per annum, for LIBOR daily floating rate loans, and from 0.50% per annum to 1.25% per annum, for loans based on the base rate, and in either case depending on the Company’s consolidated leverage ratio, and is determined in accordance with a pricing grid under the BOA Credit Facility. On March 14, 2019, the closing date under the BOA Credit Facility, the applicable interest rate (inclusive of the applicable interest rate margin) for LIBOR daily floating rate loans (the only type outstanding on the closing date) was 3.89% per annum. The BOA Credit Facility includes customary affirmative, negative, and financial covenants binding on the Company, including delivery of financial statements and other reports and maintenance of existence. The negative covenants limit the ability of the Company, among other things, to incur debt, incur liens, make investments and sell assets, but does provide for certain permitted repurchases of shares of its capital stock and the declaration and payment of certain dividends on its capital stock. The financial covenants included in the BOA Credit Facility set forth a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio for the Company, each which will be tested on a quarterly basis; and with the Company having the ability to increase the maximum leverage ratio for a limited time when needed in connection with permitted acquisitions. In addition, the BOA Credit Facility includes customary events of default. As of March 31, 2019 As of December 31, 2018 Credit facility (1) $ 30,000 $ 21,600 DFC (2) (345 ) (65 ) Net credit facility 29,655 21,535 Finance lease obligations (1) 54 66 Total debt 29,709 21,601 Less: Current portion of long-term debt 48 48 Long-term debt, excluding current portion $ 29,661 $ 21,553 (1) Principal portion of long-term debt. Refer to Future Commitments table below for principal payments to be made on long-term debt. (2) DFC refers to deferred financing costs related to the Company's long-term debt. Future Commitments The following is a summary of the combined principal maturities of all long-term debt and principal payments to be made under the Company’s finance lease agreements for each of the fiscal years presented in the table below (in thousands): Year Ended December 31, 2019 $ 48 2020 6 2021 — 2022 — 2023 — 2024 30,000 Total $ 30,054

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company records 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. The Company records bank debt, if any, as of the period end date based on the effective borrowing rate and repayment terms when originated. The Company had $30.0 million in bank debt outstanding as of March 31, 2019 and $21.6 million in bank debt outstanding as of December 31, 2018 . The Company believes the carrying value of the bank debt approximates its fair value. The Company considers the factors used in determining the fair value of this debt to be Level 3 inputs (significant unobservable inputs). The Company had $3.8 million of business acquisition obligations as of March 31, 2019 , and $4.2 million of business acquisition obligations as of December 31, 2018 . The Company's business acquisition obligations represent the estimated fair value of the deferred consideration and projected earn-out payments due as of the end of the reporting period. The Company determines the estimated fair value of business acquisition obligations based on its 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 the Company uses to value the liability is based on specific business risk, cost of capital, and other factors. The Company considers these factors to be Level 3 inputs (significant unobservable inputs). The Company states certain assets at fair value on a nonrecurring basis as required by GAAP. 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, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is 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 the Company's financial position, results of operations or cash flows.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
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 the Company's uncertain tax positions and determining its provision for income taxes. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service in the U.S. and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. The Company applies 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. PRGX refers to GAAP for guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. In accordance with FASB ASC 740, the Company's 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 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.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	Leases The Company primarily leases office space and certain office equipment using noncancelable operating leases. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease terms. Certain of our lease agreements include variable lease payments, primarily related to common area maintenance, insurance and taxes. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and are recorded as lease expense in the period incurred. The Company's leases have original lease periods expiring between 2019 and 2027, which may include the option to extend the lease when it is reasonably certain the Company will exercise that option. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. The components of lease expense, lease term and discount rate are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 1,266 Short-term lease cost 21 Variable lease cost 43 Sublease income (17 ) Total lease cost $ 1,313 Weighted Average Remaining Lease Term 3.5 Weighted Average Discount Rate 4.1 % The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2019 (in thousands): Operating Leases The remainder of 2019 $ 3,737 2020 4,359 2021 3,488 2022 1,434 2023 641 Thereafter 637 Total undiscounted cash flows 14,296 Less imputed interest (980 ) Present value of lease liabilities $ 13,316 Future minimum lease payments under noncancelable operating leases including the amended lease for our principal executive offices, are as of December 31, 2018 (in thousands): Year Ending December 31, Gross Sublease Income Amount 2019 $ 4,974 $ (72 ) $ 4,902 2020 3,882 (74 ) 3,808 2021 3,248 (77 ) 3,171 2022 1,168 — 1,168 2023 488 — 488 Total payments $ 13,760 $ (223 ) $ 13,537 Rent expense for the three months ended March 31, 2018 was $1.3 million . Supplemental cash flow information related to the Company's operating leases are as follows (in thousands): Three Months Ended March 31, 2019 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 14,404 Operating cash flows: Cash paid for amounts included in the measurement of lease liabilities $ 1,224

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Leases	Leases The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property, equipment and software, net. All other leases are categorized as operating leases. The Company’s leases generally have terms that range from two to five years for equipment and two to ten years for real property. Certain lease contracts include obligations to pay for other services, such as operations and maintenance. For leases of real property, the Company accounts for these other services as a component of the lease. For substantially all other leases, the services are accounted for separately and the Company allocates payments to the lease and other services components based on estimated stand-alone prices. Lease liabilities are recognized at the present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to the Company. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the leases. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term. When the Company has the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that the Company will exercise the option, the Company considers these options in determining the classification and measurement of the lease. The Company’s leases may include variable payments based on measures that include changes in price indices, which are expensed as incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued 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 included below: Adopted by the Company in Fiscal Year 2019 In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach provided by ASU 2018-11. The Company elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classifications. The Company also elected the short-term lease practical expedient, which allowed the Company to not recognize leases with a term of less than twelve months on our consolidated balance sheets. In addition, the Company elected the lease and non-lease components practical expedient, for real property assets, which allowed us to calculate the present value of the fixed payments without performing an allocation of lease and non-lease components. Adoption of the new standard resulted in recording operating lease right-of-use assets and operating lease liabilities of approximately $14.4 million , with no material cumulative effect adjustment to retained earnings as of the date of adoption. The adoption of this standard did not have a material impact on our consolidated statements of operations or cash flows. Operating leases are included in Operating lease right-of-use assets , Current portion of operating lease liabilities and Long-term operating lease liabilities on the Company's Condensed Consolidated Balance Sheet. Accounting Standards Not Yet Adopted FASB ASU 2018-13 - In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) ) : Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The new guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Upon the effective date, certain provisions are to be applied prospectively, while others are to be applied retrospectively to all periods presented. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We are currently evaluating the effect of this standard on our consolidated financial statement disclosures. Since this standard only affects disclosure requirements, it is not expected to have an impact on the Company's consolidated financial statements.
Fair value of financial instruments	Fair Value of Financial Instruments The Company records 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. The Company records bank debt, if any, as of the period end date based on the effective borrowing rate and repayment terms when originated. The Company had $30.0 million in bank debt outstanding as of March 31, 2019 and $21.6 million in bank debt outstanding as of December 31, 2018 . The Company believes the carrying value of the bank debt approximates its fair value. The Company considers the factors used in determining the fair value of this debt to be Level 3 inputs (significant unobservable inputs). The Company had $3.8 million of business acquisition obligations as of March 31, 2019 , and $4.2 million of business acquisition obligations as of December 31, 2018 . The Company's business acquisition obligations represent the estimated fair value of the deferred consideration and projected earn-out payments due as of the end of the reporting period. The Company determines the estimated fair value of business acquisition obligations based on its 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 the Company uses to value the liability is based on specific business risk, cost of capital, and other factors. The Company considers these factors to be Level 3 inputs (significant unobservable inputs). The Company states certain assets at fair value on a nonrecurring basis as required by GAAP. 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 the Company's uncertain tax positions and determining its provision for income taxes. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service in the U.S. and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. The Company applies 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. PRGX refers to GAAP for guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. In accordance with FASB ASC 740, the Company's 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 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.

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Computations of basic and diluted earnings (loss) per common share	The following table sets forth the computations of basic and diluted net loss per common share for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net loss from continuing operations $ (4,241 ) $ (2,328 ) Net loss from discontinued operations $ (155 ) $ (333 ) Denominator: Weighted-average common shares outstanding 22,610 22,573 Basic and diluted net loss per common share from continuing operations $ (0.19 ) $ (0.10 ) Basic and diluted net loss per common share from discontinued operations (0.01 ) (0.01 ) Total basic and diluted net loss per common share $ (0.20 ) $ (0.11 ) Anti-dilutive securities awarded under equity compensation plans excluded from diluted net loss per share calculation 4,139 1,466

Stock-Based Compensation Stock-

Stock-Based Compensation Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Activity	The following is a summary of grant activity for the three months ended March 31, 2019 (in thousands, except number of awards): Three Months Ended March 31, 2019 # of Awards Granted Grant Date Fair Value Stock options 190,000 $ 551 Restricted stock 333,552 2,824 Restricted stock units 34,000 273 PBUs 19,377 174 576,929 $ 3,822

Operating Segments and Relate_2

Operating Segments and Related Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of discontinued operations information	The following table presents the discontinued operations of the HCRA services business in the Consolidated Statement of Operations, for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Revenue, net $ — $ — Cost of sales 149 329 Selling, general and administrative expense 6 3 Depreciation and amortization — 1 Loss from discontinued operations before income taxes $ (155 ) $ (333 ) Income tax expense — — Net loss from discontinued operations $ (155 ) $ (333 ) The following table presents the discontinued operations of the HCRA services business in the Consolidated Statements of Cash Flows, for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Net cash used in operating activities $ (155 ) $ (332 ) Net cash used in investing activities — — Net cash provided by financing activities — — Decrease in cash and cash equivalents $ (155 ) $ (332 )
Segment information	Segment information for the three months ended March 31, 2019 and 2018 (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, 2019 Revenue, net $ 27,373 $ 9,759 $ 1,672 $ — $ 38,804 Net loss from continuing operations (4,241 ) Income tax expense 168 Interest expense, net 473 EBIT $ 6,004 $ 313 $ (2,145 ) $ (7,772 ) $ (3,600 ) Depreciation of property, equipment and software 1,762 162 279 — 2,203 Amortization of intangible assets 438 37 387 — 862 EBITDA $ 8,204 $ 512 $ (1,479 ) $ (7,772 ) $ (535 ) Other loss (income) — 9 — (28 ) (19 ) Foreign currency transaction (gains) losses on short-term intercompany balances (73 ) 399 (6 ) (114 ) 206 Transformation, severance, and other expenses 128 123 18 428 697 Stock-based compensation — — — 1,384 1,384 Adjusted EBITDA $ 8,259 $ 1,043 $ (1,467 ) $ (6,102 ) $ 1,733 Recovery Audit Services – Americas Recovery Audit Services – Europe/Asia- Pacific Adjacent Services Corporate Support Total Three Months Ended March 31, 2018 Revenue, net $ 25,958 $ 10,027 $ 736 $ — $ 36,721 Net loss from continuing operations (2,328 ) Income tax expense 787 Interest expense, net 398 EBIT $ 5,725 $ 1,548 $ (1,721 ) $ (6,695 ) $ (1,143 ) Depreciation of property, equipment and software 897 142 184 — 1,223 Amortization of intangible assets 337 61 390 — 788 EBITDA $ 6,959 $ 1,751 $ (1,147 ) $ (6,695 ) $ 868 Other loss (income) — 49 — (37 ) 12 Foreign currency transaction losses (gains) on short-term intercompany balances 57 (229 ) (9 ) (39 ) (220 ) Transformation, severance, and other expenses 63 543 68 — 674 Stock-based compensation — — — 1,945 1,945 Adjusted EBITDA $ 7,079 $ 2,114 $ (1,088 ) $ (4,826 ) $ 3,279

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2019 As of December 31, 2018 Credit facility (1) $ 30,000 $ 21,600 DFC (2) (345 ) (65 ) Net credit facility 29,655 21,535 Finance lease obligations (1) 54 66 Total debt 29,709 21,601 Less: Current portion of long-term debt 48 48 Long-term debt, excluding current portion $ 29,661 $ 21,553 (1) Principal portion of long-term debt. Refer to Future Commitments table below for principal payments to be made on long-term debt. (2) DFC refers to deferred financing costs related to the Company's long-term debt.
Schedule of Maturities of Long-term Debt	The following is a summary of the combined principal maturities of all long-term debt and principal payments to be made under the Company’s finance lease agreements for each of the fiscal years presented in the table below (in thousands): Year Ended December 31, 2019 $ 48 2020 6 2021 — 2022 — 2023 — 2024 30,000 Total $ 30,054

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Components of Lease Expense, Lease Term and Discount Rate	The components of lease expense, lease term and discount rate are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 1,266 Short-term lease cost 21 Variable lease cost 43 Sublease income (17 ) Total lease cost $ 1,313 Weighted Average Remaining Lease Term 3.5 Weighted Average Discount Rate 4.1 %
Maturity of Lease Liabilities	The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2019 (in thousands): Operating Leases The remainder of 2019 $ 3,737 2020 4,359 2021 3,488 2022 1,434 2023 641 Thereafter 637 Total undiscounted cash flows 14,296 Less imputed interest (980 ) Present value of lease liabilities $ 13,316
Schedule of Future Minimum Lease Payments under ASC 840	Future minimum lease payments under noncancelable operating leases including the amended lease for our principal executive offices, are as of December 31, 2018 (in thousands): Year Ending December 31, Gross Sublease Income Amount 2019 $ 4,974 $ (72 ) $ 4,902 2020 3,882 (74 ) 3,808 2021 3,248 (77 ) 3,171 2022 1,168 — 1,168 2023 488 — 488 Total payments $ 13,760 $ (223 ) $ 13,537
Supplemental Cash Flow Information	Supplemental cash flow information related to the Company's operating leases are as follows (in thousands): Three Months Ended March 31, 2019 Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 14,404 Operating cash flows: Cash paid for amounts included in the measurement of lease liabilities $ 1,224

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 13,268	$ 14,400
Present value of lease liabilities	$ 13,316	$ 13,300
Equipment [Member] | Minimum [Member]
Lessee, Lease, Description [Line Items]
Lease term (in years)	2 years
Equipment [Member] | Maximum [Member]
Lessee, Lease, Description [Line Items]
Lease term (in years)	5 years
Property [Member] | Minimum [Member]
Lessee, Lease, Description [Line Items]
Lease term (in years)	2 years
Property [Member] | Maximum [Member]
Lessee, Lease, Description [Line Items]
Lease term (in years)	10 years

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net loss from continuing operations	$ (4,241)	$ (2,328)
Net loss from discontinued operations	$ (155)	$ (333)
Denominator:
Weighted-average common shares outstanding (shares)	22,610	22,573
Basic and diluted net loss per common share from discontinued operations (in usd per share)	$ (0.19)	$ (0.10)
Basic and diluted net loss per common share from discontinued operations (in usd per share)	(0.01)	(0.01)
Total basic income (loss) per common share (in usd per share)	$ (0.20)	$ (0.11)
Anti-dilutive securities awarded under equity compensation plans excluded from diluted net loss per share calculation (shares)	4,139	1,466

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)compensation_planshares	Mar. 31, 2018USD ($)	Dec. 31, 2018shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of stock-based compensation plans | compensation_plan	2
Shares available for grant (in shares)	2,600,000
Compensation expense | $	$ 1.4	$ 1.9
Nonvested awards compensation costs not yet recognized | $	$ 9.4
Nonvested awards, compensation costs not yet recognized, period for recognition	1 year 9 months 12 days
Common stock, shares issued (shares)	23,438,058		23,186,258
Equity Option [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Performance Period	3 years
Delayed vesting period from grant date	1 year
Restricted Stock [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Grants other than options (shares)	333,552
Restricted Stock Units (RSUs) [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Performance Period	1 year
Grants other than options (shares)	34,000
Performance-Based Restricted Stock Units [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Performance Period	2 years
Target percent for PBU's used to calculate stock compensation expense (percent)	100.00%
Performance Shares [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Grants other than options (shares)	19,377
Common stock, shares issued (shares)	203,524
Awards Vesting over 3 Years [Member] | Restricted Stock [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Performance Period	3 years
Grants other than options (shares)	130,436
Awards Vesting over 1 Year [Member] | Restricted Stock [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Performance Period	1 year
Grants other than options (shares)	237,116

Stock-Based Compensation Stoc_2

Stock-Based Compensation Stock-Based Compensation Grant Date Fair Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares) | shares	190,000
Stock options granted, grant date fair value | $	$ 551
Equity grants in period (shares) | shares	576,929
Equity grants in period, grant date fair value | $	$ 3,822
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants other than options (shares) | shares	333,552
Grants other than options, grant date fair value | $	$ 2,824
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants other than options (shares) | shares	34,000
Grants other than options, grant date fair value | $	$ 273
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants other than options (shares) | shares	19,377
Grants other than options, grant date fair value | $	$ 174

Operating Segments and Relate_3

Operating Segments and Related Information - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of reportable segments | segment	3
HCRA [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued liabilities	$ 2
Unpaid claims receivable	$ 1.7

Operating Segments and Relate_4

Operating Segments and Related Information - Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting [Abstract]
Revenue, net	$ 0	$ 0
Cost of sales	149	329
Selling, general and administrative expense	6	3
Depreciation and amortization	0	1
Loss from discontinued operations before income taxes	(155)	(333)
Income tax expense	0	0
Net loss from discontinued operations	$ (155)	$ (333)

Operating Segments and Relate_5

Operating Segments and Related Information Operating Segments and Related Information - Discontinued Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting [Abstract]
Net cash used in operating activities	$ (155)	$ (332)
Net cash used in investing activities	0	0
Net cash provided by financing activities	0	0
Decrease in cash and cash equivalents	$ (155)	$ (332)

Operating Segments and Relate_6

Operating Segments and Related Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment information
Revenue, net	$ 38,804	$ 36,721
Net loss from continuing operations	(4,241)	(2,328)
Income tax expense	168	787
Interest expense, net	473	398
EBIT	(3,600)	(1,143)
Depreciation of property, equipment and software	2,203	1,223
Amortization of intangible assets	862	788
EBITDA	(535)	868
Other loss (income)	(19)	12
Foreign currency transaction (gains) losses on short-term intercompany balances	206	(220)
Transformation, severance, and other expenses	697	674
Stock-based compensation	1,384	1,945
Adjusted EBITDA	1,733	3,279
Recovery Audit Services - Americas [Member]
Segment information
Revenue, net	27,373	25,958
EBIT	6,004	5,725
Depreciation of property, equipment and software	1,762	897
Amortization of intangible assets	438	337
EBITDA	8,204	6,959
Other loss (income)	0	0
Foreign currency transaction (gains) losses on short-term intercompany balances	(73)	57
Transformation, severance, and other expenses	128	63
Stock-based compensation	0	0
Adjusted EBITDA	8,259	7,079
Recovery Audit Services - Europe/Asia-Pacific [Member]
Segment information
Revenue, net	9,759	10,027
EBIT	313	1,548
Depreciation of property, equipment and software	162	142
Amortization of intangible assets	37	61
EBITDA	512	1,751
Other loss (income)	9	49
Foreign currency transaction (gains) losses on short-term intercompany balances	399	(229)
Transformation, severance, and other expenses	123	543
Stock-based compensation	0	0
Adjusted EBITDA	1,043	2,114
Adjacent Services [Member]
Segment information
Revenue, net	1,672	736
EBIT	(2,145)	(1,721)
Depreciation of property, equipment and software	279	184
Amortization of intangible assets	387	390
EBITDA	(1,479)	(1,147)
Other loss (income)	0	0
Foreign currency transaction (gains) losses on short-term intercompany balances	(6)	(9)
Transformation, severance, and other expenses	18	68
Stock-based compensation	0	0
Adjusted EBITDA	(1,467)	(1,088)
Corporate Support [Member]
Segment information
EBIT	(7,772)	(6,695)
Depreciation of property, equipment and software	0	0
Amortization of intangible assets	0	0
EBITDA	(7,772)	(6,695)
Other loss (income)	(28)	(37)
Foreign currency transaction (gains) losses on short-term intercompany balances	(114)	(39)
Transformation, severance, and other expenses	428	0
Stock-based compensation	1,384	1,945
Adjusted EBITDA	$ (6,102)	$ (4,826)

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	Mar. 14, 2019	Mar. 31, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Amount of line of credit outstanding		$ 29,661,000	$ 21,553,000
Revolving Credit Facility [Member] | Line of Credit [Member] | Bank Of America [Member]
Line of Credit Facility [Line Items]
Credit facility, term	5 years
Line of Credit Facility, Increase (Decrease), Net	$ 60,000,000
Maximum borrowing capacity of credit facility	5,000,000
Amount of line of credit outstanding	30,000,000
Debt Outstanding, Prepayment	29,000,000
Bridge Loan [Member] | Line of Credit [Member] | Bank Of America [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity of credit facility	$ 5,000,000
Debt Instrument Secured, Equity Interest, Percentage	65.00%
Minimum [Member] | Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.50%
Minimum [Member] | Base Rate [Member] | Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	0.50%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.25%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Senior Notes [Member] | Bank Of America [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.89%
Maximum [Member] | Base Rate [Member] | Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.25%

Debt (Schedule of Debt) (Detail

Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total	$ 30,054
Net credit facility	29,709	$ 21,601
Less: Current portion of long-term debt	48	48
Long-term debt, excluding current portion	29,661	21,553
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total	30,000	21,600
DFC	(345)	(65)
Net credit facility	29,655	21,535
Finance Lease Obligations [Member]
Debt Instrument [Line Items]
Net credit facility	$ 54	$ 66

Debt (Future Minimum Liabilitie

Debt (Future Minimum Liabilities) (Details) $ in Thousands	Mar. 31, 2019USD ($)
Debt Disclosure [Abstract]
2019	$ 48
2020	6
2021	0
2022	0
2023	0
2024	30,000
Total	$ 30,054

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value of Financial Instruments (Textual) [Abstract]
Business acquisition obligations	$ 3,843	$ 4,162
Bank Loan Obligations [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Fair value of long term debt	30,000	21,600
Business Acquisition Obligations [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Business acquisition obligations	$ 3,800	$ 4,200

Leases - Components of Lease Ex

Leases - Components of Lease Expense, Lease Term and Discount Rate (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 1,266
Short-term lease cost	21
Variable lease cost	43
Sublease income	(17)
Total lease cost	$ 1,313
Weighted Average Remaining Lease Term	3 years 6 months
Weighted Average Discount Rate (percent)	4.10%

Leases - Operating Lease, Matur

Leases - Operating Lease, Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
The remainder of 2019		$ 3,737
2020		4,359
2021		3,488
2022		1,434
2023		641
Thereafter		637
Total undiscounted cash flows		14,296
Less imputed interest		(980)
Present value of lease liabilities		$ 13,316	$ 13,300
Gross Minimum Lease Payments [Abstract]
2019				$ 4,974
2020				3,882
2021				3,248
2022				1,168
2023				488
Total payments				13,760
Minimum Sublease Income [Abstract]
2019				72
2020				74
2021				77
2022				0
2023				0
Total payments				223
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019				4,902
2020				3,808
2021				3,171
2022				1,168
2023				488
Total payments				$ 13,537
Rent expense	$ 1,300

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$ 14,404
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities	$ 1,224