Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 11, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EGOV | ||
Entity Registrant Name | NIC INC | ||
Entity Central Index Key | 1,065,332 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 66,632,914 | ||
Entity Public Float | $ 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 191,700 | $ 160,777 |
Trade accounts receivable, net | 80,904 | 103,938 |
Prepaid expenses & other current assets | 13,730 | 12,843 |
Total current assets | 286,334 | 277,558 |
Property and equipment, net | 10,256 | 10,306 |
Intangible assets, net | 13,604 | 5,214 |
Deferred income taxes, net | 0 | 667 |
Other assets | 332 | 1,986 |
Total assets | 310,526 | 295,731 |
Current liabilities: | ||
Accounts payable | 60,092 | 88,920 |
Accrued expenses | 24,150 | 26,501 |
Other current liabilities | 4,883 | 3,673 |
Total current liabilities | 89,125 | 119,094 |
Deferred income taxes, net | 781 | 0 |
Other long-term liabilities | 8,931 | 8,395 |
Total liabilities | 98,837 | 127,489 |
Commitments and contingencies (Notes 2, 3, 8, 9 and 11) | 0 | 0 |
Stockholders' equity: | ||
Common stock, $0.0001 par, 200,000 shares authorized, 66,569 and 66,271 shares issued and outstanding | 7 | 7 |
Additional paid-in capital | 117,763 | 111,275 |
Retained earnings | 93,919 | 56,960 |
Total stockholders' equity | 211,689 | 168,242 |
Total liabilities and stockholders' equity | $ 310,526 | $ 295,731 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 66,569,000 | 66,271,000 |
Common stock, shares outstanding (in shares) | 66,569,000 | 66,271,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 78,649 | $ 87,028 | $ 92,498 | $ 86,725 | $ 83,472 | $ 84,533 | $ 85,326 | $ 83,177 | $ 344,900 | $ 336,508 | $ 317,915 |
Operating expenses: | |||||||||||
Selling & administrative | 14,848 | 14,690 | 14,003 | 13,150 | 13,898 | 12,091 | 13,131 | 11,660 | 56,691 | 50,780 | 47,063 |
Depreciation & amortization | 2,466 | 2,441 | 2,145 | 2,065 | 1,818 | 1,810 | 1,688 | 1,613 | 9,117 | 6,929 | 6,749 |
Total operating expenses | 66,080 | 67,581 | 70,094 | 66,085 | 66,049 | 64,447 | 65,607 | 62,068 | 269,840 | 258,171 | 240,057 |
Operating income (loss) | 12,569 | 19,447 | 22,404 | 20,640 | 17,423 | 20,086 | 19,719 | 21,109 | 75,060 | 78,337 | 77,858 |
Other income: | |||||||||||
Interest income | 406 | 153 | 57 | 0 | 616 | 0 | 0 | ||||
Income before income taxes | 12,975 | 19,600 | 22,461 | 20,640 | 75,676 | 78,337 | 77,858 | ||||
Income tax provision | 3,127 | 3,698 | 5,450 | 5,132 | 6,583 | 6,066 | 6,950 | 7,124 | 17,407 | 26,723 | 22,025 |
Net income | $ 9,848 | $ 15,902 | $ 17,011 | $ 15,508 | $ 10,840 | $ 14,020 | $ 12,769 | $ 13,985 | $ 58,269 | $ 51,614 | $ 55,833 |
Basic net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
Diluted net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 66,569 | 66,562 | 66,541 | 66,323 | 66,270 | 66,267 | 66,248 | 66,046 | 66,499 | 66,209 | 65,913 |
Diluted (in shares) | 66,641 | 66,598 | 66,561 | 66,323 | 66,334 | 66,267 | 66,248 | 66,046 | 66,560 | 66,266 | 65,966 |
Portal | |||||||||||
Revenues | $ 72,354 | $ 80,884 | $ 86,555 | $ 80,791 | $ 78,345 | $ 76,434 | $ 79,374 | $ 77,198 | $ 320,584 | $ 311,351 | $ 296,998 |
Operating expenses: | |||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | 46,412 | 48,224 | 51,711 | 48,642 | 48,154 | 47,377 | 49,009 | 47,032 | 194,989 | 191,572 | 180,287 |
Software & services | |||||||||||
Revenues | 6,295 | 6,144 | 5,943 | 5,934 | 5,127 | 8,099 | 5,952 | 5,979 | 24,316 | 25,157 | 20,917 |
Operating expenses: | |||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | $ 2,354 | $ 2,226 | $ 2,235 | $ 2,228 | $ 2,179 | $ 3,169 | $ 1,779 | $ 1,763 | $ 9,043 | $ 8,890 | $ 5,958 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2015 | 65,637 | |||
Beginning balance at Dec. 31, 2015 | $ 115,806 | $ 7 | $ 100,929 | $ 14,870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 55,833 | 55,833 | ||
Dividends declared | (43,301) | (43,301) | ||
Dividend equivalents on unvested performance-based restricted stock awards | (202) | (202) | ||
Dividend equivalents canceled upon forfeiture of performance-based restricted stock awards | 27 | 27 | ||
Restricted stock vestings (in shares) | 390 | |||
Restricted stock vestings | 136 | 136 | ||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (120) | |||
Shares surrendered and canceled upon vesting of restricted stock to satisfy tax withholdings | (2,137) | (2,137) | ||
Stock-based compensation | 5,997 | 5,997 | ||
Excess tax deductions relating to stock-based compensation | 590 | 590 | ||
Shares issuable in lieu of dividend payments on performance-based restricted stock awards | 40 | 40 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 75 | |||
Issuance of common stock under employee stock purchase plan | 1,114 | 1,114 | ||
Ending balance (in shares) at Dec. 31, 2016 | 65,982 | |||
Ending balance at Dec. 31, 2016 | 133,903 | $ 7 | 106,669 | 27,227 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of adoption of accounting standard | 409 | (409) | ||
Net income | 51,614 | 51,614 | ||
Dividends declared | (21,393) | (21,393) | ||
Dividend equivalents on unvested performance-based restricted stock awards | 0 | 110 | (110) | |
Dividend equivalents canceled upon forfeiture of performance-based restricted stock awards | 0 | (31) | 31 | |
Restricted stock vestings (in shares) | 319 | |||
Restricted stock vestings | 0 | |||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (122) | |||
Shares surrendered and canceled upon vesting of restricted stock to satisfy tax withholdings | (2,676) | (2,676) | ||
Stock-based compensation | 5,464 | 5,464 | ||
Shares issuable in lieu of dividend payments on performance-based restricted stock awards (in shares) | 5 | |||
Shares issuable in lieu of dividend payments on performance-based restricted stock awards | 0 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 87 | |||
Issuance of common stock under employee stock purchase plan | $ 1,330 | 1,330 | ||
Ending balance (in shares) at Dec. 31, 2017 | 66,271 | 66,271 | ||
Ending balance at Dec. 31, 2017 | $ 168,242 | $ 7 | 111,275 | 56,960 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of adoption of accounting standard | 208 | 208 | ||
Net income | 58,269 | 58,269 | ||
Dividends declared | (21,521) | (21,521) | ||
Dividend equivalents on unvested performance-based restricted stock awards | 0 | 137 | (137) | |
Dividend equivalents canceled upon forfeiture of performance-based restricted stock awards | 0 | (140) | 140 | |
Restricted stock vestings (in shares) | 263 | |||
Restricted stock vestings | 0 | |||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (87) | |||
Shares surrendered and canceled upon vesting of restricted stock to satisfy tax withholdings | (1,229) | (1,229) | ||
Stock-based compensation | 6,338 | 6,338 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 122 | |||
Issuance of common stock under employee stock purchase plan | $ 1,382 | 1,382 | ||
Ending balance (in shares) at Dec. 31, 2018 | 66,569 | 66,569 | ||
Ending balance at Dec. 31, 2018 | $ 211,689 | $ 7 | $ 117,763 | $ 93,919 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 58,269 | $ 51,614 | $ 55,833 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation & amortization | 9,117 | 6,929 | 6,749 |
Stock-based compensation expense | 6,338 | 5,464 | 5,997 |
Deferred income taxes | 1,448 | 1,640 | (886) |
Provision for losses on accounts receivable | 852 | 552 | 142 |
Loss on disposal of property and equipment | 88 | 49 | 24 |
Excess tax benefits related to stock-based compensation | 0 | 0 | 590 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | 22,182 | (21,769) | (2,501) |
Prepaid expenses & other current assets | (887) | 2,191 | (2,449) |
Other assets | 1,810 | (1,509) | (51) |
Accounts payable | (28,828) | 15,669 | 12,119 |
Accrued expenses | (2,351) | 2,251 | 2,136 |
Other current liabilities | 1,262 | 522 | 553 |
Other long-term liabilities | 536 | 1,233 | 2,903 |
Net cash provided by operating activities | 69,836 | 64,836 | 81,159 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,410) | (4,771) | (5,646) |
Asset acquisition | (3,555) | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 7 | 8 |
Capitalized software development costs | (8,580) | (3,565) | (2,576) |
Net cash used in investing activities | (17,545) | (8,329) | (8,214) |
Cash flows from financing activities: | |||
Cash dividends on common stock | (21,521) | (21,393) | (43,301) |
Proceeds from employee common stock purchases | 1,382 | 1,330 | 1,114 |
Tax withholdings related to stock-based compensation awards | (1,229) | (2,676) | (2,137) |
Net cash used in financing activities | (21,368) | (22,739) | (44,324) |
Net increase in cash | 30,923 | 33,768 | 28,621 |
Cash, beginning of period | 160,777 | 127,009 | 98,388 |
Cash, end of period | 191,700 | 160,777 | 127,009 |
Non-cash investing activities: | |||
Capital expenditures accrued but not yet paid | 0 | 855 | 273 |
Cash payments: | |||
Income taxes paid, net of refunds | 13,707 | 21,303 | 19,847 |
Cash dividends on common stock previously restricted for payment of dividend | $ 0 | $ 0 | $ 36,456 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | THE COMPANY NIC Inc. (the “Company” or “NIC”) is a leading provider of digital government services that help governments use technology to provide a higher level of service to businesses and citizens and increase efficiencies. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software & services businesses. In its primary outsourced portal businesses, the Company generally provides services to design, build, and operate internet-based applications on an enterprise-wide basis on behalf of state and local governments to enable access to government information and to complete secure government-based transactions through multiple online channels, including mobile devices. These portals consist of internet-based applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts, NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the digital government services and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC’s business model allows the Company to earn revenues by providing access to digital government services. The Company collects transaction fees paid by end users of the services and retains its portion for services provided to the government partner. The Company is typically responsible for funding the up-front investments and ongoing operations and maintenance costs of the digital government services. The Company’s software & services businesses primarily include its subsidiaries that provide software development and digital government services, other than on an enterprise-wide basis, to state and local governments as well as federal agencies. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating enterprise-wide digital government services on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide digital government services, other than on an enterprise-wide basis, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating digital government services on an outsourced basis including employee compensation and benefits (including stock-based compensation), payment processing fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all non-customer service related costs from the Company’s software & services businesses, including compensation and benefits, information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, and corporate-level expenses for market development and public relations. Basis of consolidation The consolidated financial statements include all the Company's direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Segment reporting The Company reports segment information in accordance with authoritative accounting guidance for segment disclosures based upon the “management” approach, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company’s segments. The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating digital government services for state and local governments on an enterprise-wide basis. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers. See Note 13, Reportable Segments and Related Information, for additional information regarding our segment reporting. Cash and cash equivalents Cash and cash equivalents primarily include cash on hand in the form of bank deposits. For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all non-restricted highly liquid instruments purchased with an original maturity of one month or less to be cash equivalents. Trade accounts receivable The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. The Company’s allowance for doubtful accounts at December 31, 2018 and 2017 was approximately $1.0 million and $0.6 million , respectively. Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 8 years for furniture and fixtures, 3 - 10 years for equipment, 3 - 5 years for purchased software, and the lesser of the term of the lease or 5 years for leasehold improvements. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in results of operations for the period. The cost of maintenance and repairs is charged to expense as incurred. Significant betterments are capitalized. The Company periodically evaluates the carrying value of property and equipment to be held and used when events and circumstances indicate the carrying value may not be fully recoverable. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flow from the asset group is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined primarily using the anticipated cash flow discounted at a rate commensurate with the risk involved. Losses on assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. The Company did not record any significant impairment losses on property and equipment during the periods presented. Software development costs and intangible assets, net The Company has finite-lived intangible assets that consist of capitalized software development costs and purchased software. In accordance with authoritative accounting guidance, intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method, unless another method of amortization is more appropriate. Such costs are included in depreciation & amortization in the consolidated statements of income. The Company carries intangible assets at cost less accumulated amortization. The estimated economic life for finite-lived intangible assets is typically 3 years from the date the software is placed in production. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any material impairment losses on intangible assets during the periods presented. The majority of the costs incurred by the Company to obtain a contract, which primarily consist of salaries of business development employees working to obtain the contract, are fixed in nature, occur regardless of whether a contract is obtained and are expensed as incurred. The Company expenses, as incurred, all employee costs to start up, operate, and maintain digital government services on an enterprise-wide basis as costs of performance under the contracts because, after the completion of a defined contract term, the government entity with which the Company contracts typically receives a perpetual, royalty-free license to the applications the Company developed, excluding applications provided on a SaaS basis. Such costs are included in cost of portal revenues in the consolidated statements of income. Other costs to fulfill a contract such as the procurement of property and equipment and certain software development costs are accounted for under other authoritative guidance. Accrued expenses As of each balance sheet date, the Company estimates expenses which have been incurred but not yet paid or for which invoices have not yet been received. Significant components of accrued expenses consist primarily of payment processing fees, employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, and miscellaneous other accruals. Revenue recognition The Company accounts for revenue in accordance with ASC 606 , which the Company adopted on January 1, 2018. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales and usage-based taxes, if applicable, are excluded from revenues. Disaggregation of Revenue The Company currently earns revenues from three main sources: (i) transaction-based fees, which consist of IGS, DHR and other transaction-based revenues, (ii) software development & services and (iii) fixed fees for portal management services. The following table summarizes, by reportable and operating segment, our principal activities from which the Company generates revenue (in thousands): Reportable and Operating Segments Outsourced Portals Other Software & Services Consolidated Total December 31, 2018 IGS $ 203,247 $ — $ 203,247 DHR 100,241 — 100,241 Other — 24,316 24,316 Total transaction-based 303,488 24,316 327,804 Software development & services 12,146 — 12,146 Portal management 4,950 — 4,950 Total revenues $ 320,584 $ 24,316 $ 344,900 December 31, 2017 IGS $ 192,200 $ — $ 192,200 DHR 103,899 — 103,899 Other — 25,157 25,157 Total transaction-based 296,099 25,157 321,256 Software development & services 10,180 — 10,180 Portal management 5,072 — 5,072 Total revenues $ 311,351 $ 25,157 $ 336,508 December 31, 2016 IGS $ 174,470 $ — $ 174,470 DHR 105,463 — 105,463 Other — 20,917 20,917 Total transaction-based 279,933 20,917 300,850 Software development & services 11,965 — 11,965 Portal management 5,100 — 5,100 Total revenues $ 296,998 $ 20,917 $ 317,915 Transaction-based revenues The Company recognizes revenue from providing outsourced digital services to its government partners. Under these contracts, the Company agrees to provide continuous access to digital government services that allow consumers to complete secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The contractual promise to provide continuous access to each of these digital government services is a single stand-ready performance obligation. Transaction-based fees earned by the Company are typically usage-based and calculated based on the number of transactions processed each day at the contractual net fee earned by the Company for each transaction. These usage-based fees are deemed to be variable consideration that meets the practical expedient within ASC 606 whereby the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these arrangements, the usage-based fees are fully constrained and recognized once the uncertainties associated with the constraint are resolved, which is when the related transactions occur each day. The Company satisfies its performance obligation by providing access to applications over the contractual term, and by processing transactions as they are initiated by consumers. The performance obligation is satisfied on the day the Company provides the access and it is used by the consumer. In most of its transaction-based revenue arrangements, the Company acts as an agent and recognizes revenue on a net basis. The gross transaction fees collected by the Company from consumers on behalf of its government partners are not recognized as revenue but are accrued as accounts payable when the services are provided at the time of the transactions. The Company must remit a certain amount or a percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees from the consumer. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. Under certain contracts, the Company’s government partners may receive consideration for a portion of the transaction fee remitted to the Company. In circumstances where the Company receives a discernible benefit in the arrangement, the consideration paid to the government partner is recorded on a gross basis within costs of revenues. Otherwise, the consideration paid to the government partner is accounted for on a net basis as a reduction in the transaction-based fee recorded within revenue. Software development and services revenues The Company’s software development and services revenues primarily include revenues from providing software development and other time and materials services to our government partners. The Company identifies each performance obligation in its software development and services contracts at contract inception, which are generally combined into a single promise. The contract pricing is either at stated billing rates per hour or a fixed amount. These contracts are generally short-term in nature and not longer than one year in duration. For services provided under software development and services agreements that result in the transfer of control over time, the underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue on rate per hour contracts based on the amount billable to the customer, as the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. For fixed fee contracts, the Company utilizes the input method and recognizes revenue based on the labor expended to date relative to the total labor expected to satisfy the contract performance obligation. This input measure of progress is used because it best depicts the transfer of assets to the customer, which occurs as the Company incurs costs to deliver the promise in the contracts. Certain software development and service contracts include substantive customer acceptance provisions. In contracts that include substantive customer acceptance provisions, the Company recognizes revenue at a point in time upon customer acceptance. Under its software development and services contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of December 31, 2018 , the total transaction price allocated to unsatisfied performance obligations was approximately $2.8 million . Portal management revenues Portal management revenues primarily consist of revenues from providing recurring fixed fee services for the Company’s government partner in Indiana. This contract has a single performance obligation to provide a broad scope of services to manage the digital government services for the state of Indiana. The Company satisfies its performance obligation by providing services to the state over time. The contract can be terminated without a penalty by the state with a 30-day notice, and accordingly, the period over which the Company performs services is commensurate with a month to month contract. Consideration consists of a fixed-monthly fee that is recognized monthly as the performance obligation is satisfied. As of December 31, 2018 , the Company’s Indiana portal management contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. Unearned Revenues The Company records unearned revenues when cash payments are received or due in advance of the Company’s satisfaction of the performance obligation(s). At each balance sheet date, the Company determines the portion of unearned revenues that will be earned within one year and records that amount in other current liabilities in the consolidated balance sheets. The remainder, if any, is recorded in other long-term liabilities. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Unearned revenues at December 31, 2018 and 2017 were approximately $1.7 million and $1.4 million , respectively. The change in the deferred revenue balance for the year primarily reflects $5.2 million of cash payments received or due in advance of satisfying our performance obligations, offset by $4.9 million of revenues recognized that were included in the deferred revenue balance during in 2018. Stock-based compensation The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award and recognizes an expense on a straight-line basis over the employee’s requisite service period for the entire award (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense ratably over the performance period based upon the probable number of shares expected to vest. See Note 12, Stock-based Compensation and Employee Benefit Plans, for additional information. Income taxes The Company, along with its wholly owned subsidiaries, files a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company does not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable, based on its technical merits. If the recognition threshold is met, the Company recognizes a tax benefit based upon the largest amount of the tax benefit that is more likely than not probable, determined by cumulative probability, of being realized upon settlement with the taxing authority. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. Fair value of financial instruments The carrying values of the Company’s accounts receivable and accounts payable approximate fair value. Comprehensive income The Company has no components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is the same as its net income for all periods presented. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable. At December 31, 2018 and 2017 , LexisNexis Risk Solutions accounted for approximately 15% and 16% , respectively, of the Company’s total accounts receivable. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently issued accounting pronouncements Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in current U.S. Generally Accepted Accounting Principles (“GAAP”) with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The ASU will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Expenses are recognized in the statement of income in a manner similar to current accounting guidance. ASU 2016-02, as amended by ASU No. 2018-11, Targeted Improvements , requires entities to adopt the standard using one of two modified retrospective approaches. 1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company will adopt the accounting standard on January 1, 2019 using the modified retrospective approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which allows the Company to not to reassess (i) whether expired or existing contracts contain a lease under the new standard, (ii) the lease classification for expired or existing leases or (iii) whether previously-capitalized initial direct costs would qualify for capitalization under the new standard. In addition, the Company will not elect to use hindsight during transition. The standard will have a material impact on the Company's consolidated balance sheets but will not have a material impact on the consolidated statements of income. The adoption of the standard is expected to result in the recognition of ROU assets and lease liabilities of approximately $12.6 million and $13.0 million , respectively, as of January 1, 2019. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers ( “ ASC 606 ” ) , a new standard related to revenue recognition. Under this standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires expanded disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. On January 1, 2018, the Company adopted ASC 606, and all the related amendments, using the modified retrospective method for all contracts not completed as of the date of adoption. The adoption of ASC 606 represents a change in accounting principle for portal software development and services contracts that will more closely align revenue recognition with the delivery of Company’s services, which under certain contracts will result in the recognition of revenue over time as opposed to at a point in time. Upon adoption, there was not a significant cumulative adjustment to retained earnings on the Company’s balance sheet for this change in accounting principle. Under the modified retrospective method, the comparative information was not restated and continues to be reported under the accounting standards in effect for those periods. The impact to revenues for the year ended December 31, 2018 was not significant as a result of applying ASC 606. |
OUTSOURCED GOVERNMENT CONTRACTS
OUTSOURCED GOVERNMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2018 | |
Contractors [Abstract] | |
OUTSOURCED GOVERNMENT CONTRACTS | OUTSOURCED GOVERNMENT CONTRACTS State enterprise-wide contracts The Company’s outsourced state master contracts generally have an initial multi-year term with provisions for renewals for various periods at the option of the government. The Company’s primary business obligation under these contracts is generally to design, build, and operate digital government services on an enterprise-wide basis on behalf of governments to enable access to government information and to complete transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the services and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into statements of work with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These statements of work preliminarily establish the pricing of the online transactions and data access services the Company provides and the division of revenues between the Company and the government agency. The government oversight authority must approve prices and revenue sharing agreements. The Company has limited control over the level of fees it is permitted to retain. The Company is typically responsible for funding the up-front investments and ongoing operations and maintenance costs of digital government services, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the applications and digital government services built by the Company only in its own state. However, certain proprietary customer management, billing, payment processing and other software applications that the Company has developed and standardized centrally and that are utilized by the Company’s portal businesses, are being provided to a number of government partners on a SaaS basis, and thus would not be included in any royalty-free license. If the Company’s contract expires after a defined term or if its contract is terminated by a government partner for cause, the government agency would be entitled to take over the services in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. Any renewal of these contracts beyond the initial term by the government is optional and a government may terminate its contract prior to the expiration date if the Company breaches a material contractual obligation and fails to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 15 contracts under which the Company provides enterprise-wide digital government services, as well as the Company’s contract with the FMCSA can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 45% of the Company’s total consolidated revenues for the year ended December 31, 2018 . If any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay the Company a fee to continue to use the Company’s applications in its state. Under a typical state master contract, the Company is required to fully indemnify its government clients against claims that the Company’s services infringe upon the intellectual property rights of others and against claims arising from the Company’s performance or the performance of the Company’s subcontractors under the contract. At December 31, 2018 , the Company was bound by performance bond commitments totaling approximately $5.8 million on certain state enterprise-wide contracts. The following is a summary of the state contracts through which the Company generates meaningful revenue and has been contracted to provide enterprise-wide digital government services to multiple government agencies: NIC Enterprise Contract State Year Services Commenced Contract Expiration Date Renewal Options Through NICUSA, IL Division Illinois 2017 6/29/2023 6/29/2027 Louisiana Interactive, LLC Louisiana 2015 1/28/2020 Connecticut Interactive, LLC Connecticut 2014 1/9/2020 Wisconsin Interactive Network, LLC Wisconsin 2013 5/12/2021 5/13/2023 Pennsylvania Interactive, LLC Pennsylvania 2012 11/30/2019 11/30/2022 NICUSA, OR Division Oregon 2011 11/22/2021 NICUSA, MD Division Maryland 2011 8/10/2019 Mississippi Interactive, LLC Mississippi 2011 12/31/2019 12/31/2021 New Jersey Interactive, LLC New Jersey 2009 4/30/2020 4/30/2022 West Virginia Interactive, LLC West Virginia 2007 6/30/2021 6/30/2024 Vermont Information Consortium, LLC Vermont 2006 6/8/2019 Colorado Interactive, LLC Colorado 2005 4/30/2022 4/30/2023 South Carolina Interactive, LLC South Carolina 2005 7/15/2019 7/15/2021 Kentucky Interactive, LLC Kentucky 2003 8/31/2020 Alabama Interactive, LLC Alabama 2002 3/19/2020 3/19/2022 Rhode Island Interactive, LLC Rhode Island 2001 7/1/2019 Oklahoma Interactive, LLC Oklahoma 2001 3/31/2020 Montana Interactive, LLC Montana 2001 12/31/2019 12/31/2020 Hawaii Information Consortium, LLC Hawaii 2000 1/3/2020 Idaho Information Consortium, LLC Idaho 2000 6/30/2019 Utah Interactive, LLC Utah 1999 6/5/2019 Maine Information Network, LLC Maine 1999 6/30/2020 Arkansas Information Consortium, LLC Arkansas 1997 6/30/2019 Indiana Interactive, LLC Indiana 1995 10/24/2021 Nebraska Interactive, LLC Nebraska 1995 3/31/2024 3/31/2026 Kansas Information Consortium, LLC Kansas 1992 12/31/2022 12/31/2026 Outsourced federal contract The Company’s subsidiary NIC Federal has a contract with the FMCSA to develop and manage the FMCSA’s PSP for motor carriers nationwide, using the Company’s transaction-based business model. In February 2019, the FMCSA extended the current contract through August 27, 2019 , which includes three six-month renewal options. The contract can be terminated by the FMCSA without cause on a specified period of notice. Expiring contracts There are currently 10 contracts under which the Company provides enterprise-wide digital government services, as well as the Company’s contract with the FMCSA, that have expiration dates within the 12 -month period following December 31, 2018 . Collectively, revenues generated from these contracts represented approximately 31% of the Company’s total consolidated revenues for the year ended December 31, 2018 . Although certain of these contracts have renewal provisions, any renewal is at the option of the Company’s government partner. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the services in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. As previously disclosed, Texas NICUSA was selected to provide the payment processing services set forth in the Texas.gov 3.0 Procurement RFO (the "Texas RFO") but was not selected to provide enterprise-wide services to operations, maintenance and development. The legacy contract between the state of Texas and Texas NICUSA expired on August 31, 2018 . The legacy Texas contract accounted for approximately 14% , 20% and 20% of the Company's total consolidated revenues for the years ended December 31, 2018 , 2017 and 2016 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , revenues from the legacy Texas contract were approximately $49.0 million , $65.7 million and $62.2 million , respectively. In connection with the completion of the legacy Texas contract, the Company substantially reduced its workforce in Texas. Total one-time severance-related and transition costs, which have been recognized in cost of portal revenues in the consolidated statement of income in the outsourced portal segment, were approximately $1.0 million in 2018. The contract under which the Company’s subsidiary, NICUSA Inc. (“NICUSA”), managed the state of Tennessee’s enterprise-wide digital government services expired on March 31, 2017 . For the years ended December 31, 2017 and 2016 , revenues from the Tennessee contract were approximately $1.8 million and $7.5 million , respectively. The contract under which the Company’s subsidiary, Iowa Interactive, LLC, managed digital government services for the state of Iowa expired on June 30, 2016 . For the years ended December 31, 2016 , revenues from the Iowa contract were approximately $1.6 million . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to undistributed earnings that would otherwise have been available to common stockholders. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled approximately 0.7 million at December 31, 2018 and 0.6 million at December 31, 2017 and 2016 . Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (amounts in thousands except per share amounts): December 31, 2018 2017 2016 Numerator: Net income $ 58,269 $ 51,614 $ 55,833 Less: Income allocated to participating securities (629 ) (479 ) (492 ) Net income available to common stockholders $ 57,640 $ 51,135 $ 55,341 Denominator: Weighted average shares - basic 66,499 66,209 65,913 Performance-based restricted stock awards 61 57 53 Weighted average shares - diluted 66,560 66,266 65,966 Basic net income per share: $ 0.87 $ 0.77 $ 0.84 Diluted net income per share: $ 0.87 $ 0.77 $ 0.84 |
ASSET ACQUISITION
ASSET ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ASSET ACQUISITION | ASSET ACQUISITION During 2018, the Company entered into a purchase agreement to acquire certain prescription drug monitoring software technology assets of a Maryland-based, privately held company, Leap Orbit LLC ("Leap Orbit"). The purchase price consisted of cash consideration of approximately $3.6 million and potential additional consideration of approximately $3.5 million if certain conditions under the agreement are met. The transaction was accounted for as an asset acquisition, as substantially all of the value related to the prescription drug monitoring software technology acquired. The Company expects to pay the additional consideration of $3.5 million in the first half of 2019 payment, which will be included in the cost of the acquired assets. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Software development cost $ 22,190 $ (11,647 ) $ 10,543 $ 13,610 $ (8,396 ) $ 5,214 Purchased software 3,555 (494 ) 3,061 — — — Total $ 25,745 $ (12,141 ) $ 13,604 $ 13,610 $ (8,396 ) $ 5,214 During 2018, the Company recorded approximately $3.6 million of intangible asset software purchases and related costs in connection with the Leap Orbit asset acquisition, as further discussed in Note 5, Asset Acquisition. Amortization expense for intangible assets with finite lives was $3.7 million , $1.9 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The total estimated intangible asset amortization expense in future years is as follows (in thousands): Fiscal Year 2019 $ 6,003 2020 4,886 2021 2,715 $ 13,604 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at December 31 (in thousands): 2018 2017 Equipment $ 24,548 $ 30,411 Purchased software 8,971 10,028 Furniture and fixtures 5,614 5,669 Leasehold improvements 2,221 2,249 41,354 48,357 Less accumulated depreciation (31,098 ) (38,051 ) Property and equipment, net $ 10,256 $ 10,306 Depreciation expense for the years ended December 31, 2018 , 2017 and 2016 was $5.4 million , $5.0 million and $5.5 million , respectively. |
DEBT OBLIGATIONS AND COLLATERAL
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS On April 28, 2017 , the Company entered into Amendment No. 3 to Amended and Restated Credit Agreement (the “Amendment’), which amends the Amended and Restated Credit Agreement, dated as of August 6, 2014, by and between the Company and Bank of America, N.A. (the “Credit Agreement”). The Amendment extended the maturity date to May 1, 2019. The Credit Agreement provides that the interest rate on any amounts borrowed by the Company will be at an annual rate benchmarked to LIBOR with a term equivalent to such borrowing or at an annual rate adjusted daily and benchmarked to LIBOR for a one-month term, in each event plus a margin of 1.15% or 1.25% depending on the Company’s consolidated leverage ratio. The margin is 1.15% if the Company’s consolidated leverage ratio is less than 1.50 :1, or 1.25% if the Company’s consolidated leverage ratio is greater than or equal to 1.50 :1. The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default. The Credit Agreement requires the Company to maintain compliance with the following financial covenants (in each case, as defined in the Credit Agreement): • Consolidated tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the Credit Agreement); and • Consolidated maximum leverage ratio of 1.50 :1 (the ratio of total funded debt to EBITDA, as defined in the Credit Agreement). The Company was in compliance with each of these covenants at December 31, 2018 . The Company issues letters of credit mainly as collateral for an office lease, and to a much lesser extent, as collateral for performance on one of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year . In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $0.2 million at December 31, 2018 . The Company was not required to cash collateralize these letters of credit at December 31, 2018 . The Company had $4.8 million in available capacity to issue additional letters of credit and $9.8 million of unused borrowing capacity at December 31, 2018 under the Credit Agreement. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50 million , subject to securing additional commitments from the bank. At December 31, 2018 , the Company has a $1.0 million line of credit with a bank in conjunction with a corporate credit card agreement. At December 31, 2018 , the Company was bound by performance bond commitments totaling approximately $5.8 million on certain outsourced government portal contracts. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating leases The Company and its subsidiaries lease office space and certain equipment under noncancelable operating leases. Future minimum lease payments under all noncancelable operating leases at December 31, 2018 are as follows (in thousands): Fiscal Year 2019 $ 4,673 2020 3,403 2021 2,604 2022 2,082 2023 698 Thereafter 690 Total minimum lease payments $ 14,150 Rent expense for operating leases for the years ended December 31, 2018 , 2017 and 2016 was approximately $5.3 million , $5.1 million and $4.9 million , respectively. Litigation From time to time, the Company is involved in legal proceedings and litigation arising in the ordinary course of business. However, the Company is not currently a party to any material legal proceedings. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividend policy In 2016, the Company’s Board of Directors approved a dividend policy pursuant to which it plans to make, subject to subsequent declaration, regular quarterly cash dividends of $0.08 per share, beginning with the declaration and payment of a cash dividend in the first quarter of 2017. For each dividend paid, a dividend equivalent is paid simultaneously on unvested shares of service-based restricted stock. In addition, holders of performance-based restricted stock accrue dividend equivalents, for each of the dividend declared, that could be earned and become payable in the form of additional shares of common stock at the end of the respective performance period to the extent that the underlying shares of performance-based restricted stock were earned. All dividends were paid out of the Company's available cash. Dividends On January 28, 2019 , the Company's Board of Directors declared a regular quarterly cash dividend of $0.08 per share, payable to stockholders of record as of March 5, 2019 . The dividend, which is expected to total approximately $5.4 million , will be paid on March 19, 2019 . The Company's Board of Directors declared the following dividends: Declaration Date Dividend per Share Record Date Payment Date Amount (in thousands) 2018 Year-end January 29, 2018 $0.08 March 6, 2018 March 20, 2018 $5,370 May 1, 2018 0.08 June 5, 2018 June 19, 2018 5,384 July 30, 2018 0.08 September 5, 2018 September 19, 2018 5,384 October 28, 2018 0.08 December 4, 2018 December 18, 2018 5,383 2017 Year-end January 30, 2017 $0.08 March 7, 2017 March 21, 2017 $5,342 May 2, 2017 0.08 June 6, 2017 June 20, 2017 5,350 July 31, 2017 0.08 September 6, 2017 September 20, 2017 5,351 October 30, 2017 0.08 December 5, 2017 December 19, 2017 5,350 On November 1, 2016 , the Company’s Board of Directors declared a special cash dividend of $0.65 per share, payable to stockholders of record as of November 16, 2016 . The dividend, totaling approximately $43.3 million , was paid on December 9, 2016 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act, among other changes, reduced the statutory federal corporate income tax rate from 35% to 21% effective January 1, 2018. The impact of the remeasurement on the Company's net deferred tax asset as of December 31, 2017 , was an $0.3 million decrease in deferred tax assets. The Tax Act also included a number of other provisions including the elimination of net operating loss carrybacks and limitations on the use of future losses and the repeal of the domestic production activities deduction, among others. The Company has completed the assessment of the impact of the new tax legislation and no significant measurement period adjustments were recorded in 2018. The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 Current income taxes: Federal $ 13,704 $ 22,533 $ 20,433 State 2,255 2,550 2,478 Total 15,959 25,083 22,911 Deferred income taxes: Federal 1,466 1,576 (857 ) State (18 ) 64 (29 ) Total 1,448 1,640 (886 ) Total income tax provision $ 17,407 $ 26,723 $ 22,025 Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in thousands): 2018 2017 Deferred tax assets: Stock-based compensation $ 1,156 $ 997 Federal benefit of state uncertain tax positions 954 919 Accrued vacation 550 660 Deferred rent 81 119 State net operating loss carryforwards 272 266 Allowance for doubtful accounts 240 135 Other 662 316 Gross deferred tax assets 3,915 3,412 Less: Valuation allowance (367 ) (257 ) Total deferred tax assets 3,548 3,155 Deferred tax liabilities: Property and equipment (1,834 ) (1,256 ) Capitalized software development costs (2,495 ) (1,232 ) Total deferred tax liabilities $ (4,329 ) $ (2,488 ) Net deferred tax (liability) asset $ (781 ) $ 667 Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has identified certain estimated state net operating loss (“NOL”) carryforwards that it might be unable to use. Based on a review of applicable state tax statutes, the Company concluded that there is substantial doubt it would be able to realize the full amount of certain estimated NOL carryforwards in states where the Company cannot file a consolidated income tax return or where future taxable income will not be sufficient to utilize the state NOL before it expires. As a result, the Company recorded a deferred tax asset valuation allowance of $0.4 million and $0.3 million at December 31, 2018 and 2017 , respectively. The following table reconciles the statutory federal income tax rate and the effective income tax rate indicated by the consolidated statements of income: Year Ended December 31, 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % Domestic production activities deductions — % (2.6 )% (8.7 )% Federal and state tax credits (2.3 )% (2.0 )% (2.0 )% Tax deficit (benefit) from restricted stock vestings 0.3 % (0.7 )% — % State income taxes 2.3 % 1.8 % 1.4 % Uncertain tax positions 0.8 % 1.6 % 3.3 % Nondeductible expenses 0.8 % 0.7 % 0.6 % Other, net 0.1 % 0.3 % (1.3 )% Effective federal and state income tax rate 23.0 % 34.1 % 28.3 % The Company’s effective tax rate in 2018 was higher than the statutory federal income tax rate due mainly to state income taxes, uncertain tax positions, and nondeductible expenses, partially offset by favorable benefits related to the federal research and development credit. The Company's effective tax rate in 2017 was lower than the statutory federal income tax rate due mainly to favorable benefits related to the domestic production activities deduction, the federal research and development credit, and excess tax benefits from restricted stock vestings, partially offset by a one-time charge as a result of the Tax Act, described above. The Company's effective tax rate in 2016 was lower than the statutory federal income tax rate due mainly to favorable benefits related to the domestic production activities deduction, the federal research and development credit, an adjustment to certain deferred tax liabilities related to a previous acquisition of a business and the filing of the Company’s 2014 and 2013 amended federal income tax returns during the fourth quarter of 2016. During the third quarter of 2016, the Company completed its study of qualifying activities for the domestic production activities deduction and began recognizing tax benefits for the deduction upon the filing of its fiscal 2015 federal income tax return. The Company recognized tax benefits, included in its income tax provision for 2016, of approximately $1.5 million for the 2016 tax year and approximately $1.4 million for the 2015 tax year, related to the domestic production activities deduction. During the fourth quarter of 2016 , the Company amended its federal income tax returns for the 2014 and 2013 tax years and recognized tax benefits, included in its income tax provision for 2016 , of approximately $1.2 million for the 2014 tax year and $1.0 million for the 2013 tax year, related to the domestic production activities deduction. The Company recognized $0.3 million in tax deficits and $0.5 million in excess tax benefits from restricted stock vestings within income tax expense for the years ended December 31, 2018 and 2017 , respectively. Prior to the adoption of ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, excess tax benefits of $0.6 million were recognized as additional paid-in capital during 2016 . The following table provides a reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits (included in other long-term liabilities in the consolidated balance sheets) for the years ended December 31, 2018 , 2017 and 2016 (in thousands): 2018 2017 2016 Balance at January 1 $ 8,020 $ 6,599 $ 3,721 Additions for tax positions of prior years 459 576 1,754 Additions for tax positions of current years 1,248 1,646 1,589 Expiration of the statute of limitations (1,024 ) (788 ) (439 ) Reductions for tax positions of prior years (52 ) (13 ) (26 ) Balance at December 31 $ 8,651 $ 8,020 $ 6,599 The increase in the amount of the consolidated liability for unrecognized income tax benefits in 2018 was mainly due to the federal research and development credit. At December 31, 2018 , there were approximately $7.7 million of unrecognized tax benefits that if recognized would affect the Company’s annual effective tax rate. It is reasonably possible that events will occur during the next 12 months that would cause the total amount of unrecognized tax benefits to increase or decrease. However, the Company does not expect such increases or decreases to be material to its financial condition or results of operations. The Company, along with its wholly owned subsidiaries, files a consolidated U.S. federal income tax return and separate income tax returns in many states throughout the U.S. The Internal Revenue Service ("IRS") is currently examining the Company's 2016 consolidated U.S. federal income tax return. The Company remains subject to U.S. federal examination for the tax years ended on or after December 31, 2013 . State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of income tax expense in the consolidated statements of income. Accrued interest and penalty amounts were not significant at December 31, 2018 , 2017 and 2016 . |
STOCK-BASED COMPENSATION AND EM
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS The following table presents stock-based compensation expense included in the Company’s consolidated statements of income (in thousands): Year Ended December 31, 2018 2017 2016 Cost of portal revenues, exclusive of depreciation & amortization $ 1,516 $ 1,276 $ 1,390 Cost of software & services revenues, exclusive of depreciation & amortization 151 86 62 Selling & administrative 4,671 4,102 4,545 Stock-based compensation expense before income taxes $ 6,338 $ 5,464 $ 5,997 Stock option and restricted stock plans The Company has a stock compensation plan (the “NIC Plan”) to provide for the granting of restricted stock awards, incentive stock options or non-qualified stock options to encourage certain employees of the Company and its subsidiaries, and directors of the Company to participate in the ownership of the Company and to provide additional incentive for such employees and directors to promote the success of its business through sharing in the future growth of such business. The Company did not grant any stock options in 2018 , 2017 , or 2016 and has no stock options currently outstanding. Instead, the Company currently expects to continue to grant only restricted stock awards. As approved by the Company’s Board of Directors and stockholders, the Company is authorized to grant 15,825,223 common shares under the NIC Plan. The Company made non-material changes to the NIC Plan in 2016 to increase grantee tax withholding rights under new accounting rules that became effective for the Company in 2017. At December 31, 2018 , a total of 3,482,300 shares were available for future grants under the NIC Plan. Restricted stock During 2018 , the Compensation Committee of the Board of Directors of the Company (the “Committee”) granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 350,054 shares with a grant-date fair value totaling approximately $4.9 million . Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25% . In addition, non-employee directors of the Company were granted service-based restricted stock awards totaling 54,584 shares with a grant-date fair value totaling approximately $0.8 million . Such restricted stock awards vest one year from the date of grant. During the first quarter of 2018 , the Committee also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company’s executive compensation program totaling 177,730 shares with a grant-date fair value totaling approximately $2.4 million , which represents the maximum number of shares the executive officers can earn at the end of a three -year performance period ending December 31, 2020 . The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period: • Operating income growth (three-year compound annual growth rate); • Total consolidated revenue growth (three-year compound annual growth rate); and • Return on invested capital (three-year average). At the end of the three -year period, the executive officers are eligible to receive up to a specified number of shares based upon the Company’s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividends declared during the performance period, payable in the form of additional shares of Company common stock, based upon the maximum number of shares to be earned by the executive officers for each performance-based restricted stock award. Such hypothetical cash dividend payment shall be divided by the fair value of the Company’s common stock on the dividend payment date to determine the maximum number of notional shares to be awarded. At the end of the three -year performance period and on the date some or all of the shares are paid under the agreement, a pro rata number of notional dividend shares will be converted into an equivalent number of dividend shares paid and granted to the executive officers based upon the actual number of underlying shares earned during the performance period. At December 31, 2018 , the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 22, 2016 ended. Based on the Company’s actual financial results from 2016 through 2018 , 64,846 of the shares and 4,226 dividend shares were earned. The remaining 73,345 shares subject to the awards will be forfeited in the first quarter of 2019. At December 31, 2017 , the three -year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 23, 2015 ended. Based on the Company’s actual financial results from 2015 through 2017, no shares or dividend equivalent shares were earned. The 91,820 shares subject to the awards were forfeited. At December 31, 2016 , the three -year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 24, 2014 ended. Based on the Company’s actual financial results from 2014 through 2016 , 59,437 of the shares and 4,945 dividend shares were earned. The remaining 21,503 shares subject to the awards were forfeited. A summary of service-based restricted stock activity for the year ended December 31, 2018 is presented below: Service-based Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 609,886 $ 19.59 Granted 404,638 $ 14.15 Vested (264,583 ) $ 19.29 Canceled (32,862 ) $ 16.75 Outstanding at December 31, 2018 717,079 $ 16.58 Expected to vest at December 31, 2018 717,079 $ 16.58 The fair value of service-based restricted stock vested during the years ended December 31, 2018 , 2017 and 2016 was approximately $5.1 million , $4.7 million and $4.6 million , respectively. The weighted average grant date fair value per share of service-based restricted stock granted during the years ended December 31, 2018 , 2017 and 2016 was $14.15 , $21.46 and $17.67 , respectively. A summary of performance-based restricted stock activity for the year ended December 31, 2018 is presented below: Performance- based Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 340,689 $ 18.91 Granted 177,730 $ 13.70 Vested — $ 17.11 Canceled (91,820 ) $ 17.11 Outstanding at December 31, 2018 426,599 $ 17.12 Expected to vest at December 31, 2018 93,731 $ 17.39 The fair value of performance-based restricted stock vested during the years ended December 31, 2018 , 2017 and 2016 was approximately $0 million , $1.2 million and $1.6 million , respectively. The weighted average grant date fair value per share of performance-based restricted stock granted during the years ended December 31, 2018 , 2017 and 2016 was $13.70 , $22.00 and $17.62 , respectively. At December 31, 2018 , the total intrinsic value of unvested restricted stock awards expected to vest was approximately $10.1 million . At December 31, 2018 , the Company had approximately $8.2 million of total unrecognized compensation cost related to unvested restricted stock awards. The Company expects to recognize this cost over a weighted average period of approximately two years from December 31, 2018 . Employee stock purchase plan In 1999, the Company’s Board of Directors approved an employee stock purchase plan (“ESPP”) intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. A total of 2,321,688 shares of NIC common stock have been reserved for issuance under this plan. Terms of the plan permit eligible employees to purchase NIC common stock through payroll deductions up to the lesser of 15% of each employee’s compensation or $25,000 . Amounts deducted and accumulated by the participant are used to purchase shares of NIC’s common stock at 85% of the lower of the fair value of the common stock at the beginning or the end of the offering period, as defined in the plan. In the offering period commencing on April 1, 2017 and ending on March 31, 2018 , 122,152 shares were purchased at a price of $11.31 per share, resulting in total cash proceeds to the Company of approximately $1.4 million . In the offering period commencing on April 1, 2016 and ending on March 31, 2017 , 86,998 shares were purchased at a price of $15.29 per share, resulting in total cash proceeds to the Company of approximately $1.3 million . In the offering period commencing on April 1, 2015 and ending on March 31, 2016 , 74,976 shares were purchased at a price of $14.86 per share, resulting in total cash proceeds to the Company of approximately $1.1 million . The current offering period under this plan commenced on April 1, 2018 . The closing fair market value of NIC common stock on the first day of the current offering period was $13.30 per share. The fair values of the offerings were estimated on the dates of grant using the Black-Scholes model using the assumptions in the following table. March 31, 2018 Offering March 31, 2017 Offering March 31, 2016 Offering Risk-free interest rate 2.08 % 1.02 % 0.62 % Expected dividend yield 2.06 % 2.69 % 3.04 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 35.51 % 23.07 % 28.54 % Weighted average fair value of ESPP rights $ 3.75 $ 4.58 $ 4.40 The Black-Scholes option-pricing model was not developed for use in valuing employee ESPP rights but was developed for use in estimating the fair value of traded stock options that have no vesting restrictions and are fully transferable. In addition, it requires the use of subjective assumptions including expectations of future dividends and stock price volatility. Such assumptions are only used for making the required fair value estimate and should not be considered as indicators of future dividend policy or stock price appreciation or should not be used to predict the value ultimately realized by employees who receive equity awards. Because changes in the subjective assumptions can materially affect the fair value estimate and because employee stock options have characteristics significantly different from those of traded options, the use of the Black-Scholes option-pricing model may not provide a reliable estimate of the fair value of ESPP rights. Defined contribution 401(k) profit sharing plan The Company and its subsidiaries sponsor a defined contribution 401(k) profit sharing plan. In accordance with the plan, all full-time employees are eligible immediately upon employment and non full-time employees are eligible upon reaching 1,000 hours of service in the relevant period. A discretionary match by the Company of an employee’s contribution of up to 5% of base salary and a discretionary contribution may be made to the plan as determined by the Board of Directors. Expense related to Company matching contributions totaled approximately $2.7 million , $2.7 million and $2.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
REPORTABLE SEGMENTS AND RELATED
REPORTABLE SEGMENTS AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS AND RELATED INFORMATION | REPORTABLE SEGMENTS AND RELATED INFORMATION The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating digital government services on an enterprise-wide basis for state and local governments. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and digital government services, other than on an enterprise-wide basis, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and have been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all operating segments. The Company’s Chief Executive Officer has been identified as the chief operating decision maker ("CODM"). The measure of profitability by which management, including the CODM, evaluates the performance of its segments and allocates resources to them is operating income (loss). Segment assets or other segment balance sheet information is not presented to the Company’s CODM. Accordingly, the Company has not presented information relating to segment assets. The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2018 Revenues $ 320,584 $ 24,316 $ — $ 344,900 Costs & expenses 194,989 9,043 56,691 260,723 Depreciation & amortization 2,985 100 6,032 9,117 Operating income (loss) $ 122,610 $ 15,173 $ (62,723 ) $ 75,060 2017 Revenues $ 311,351 $ 25,157 $ — $ 336,508 Costs & expenses 191,572 8,890 50,780 251,242 Depreciation & amortization 2,698 97 4,134 6,929 Operating income (loss) $ 117,081 $ 16,170 $ (54,914 ) $ 78,337 2016 Revenues $ 296,998 $ 20,917 $ — $ 317,915 Costs & expenses 180,287 5,958 47,063 233,308 Depreciation & amortization 3,230 77 3,442 6,749 Operating income (loss) $ 113,481 $ 14,882 $ (50,505 ) $ 77,858 The following table identifies each type of service, consumer and state that accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31: Percentage of Total Consolidated Revenues 2018 2017 2016 Type of Service Motor Vehicle Driver History Record Retrieval 29 % 31 % 33 % Motor Vehicle Registrations 14 % 14 % 14 % Consumer LexisNexis Risk Solutions 19 % 19 % 22 % (Resells motor vehicle driver history records to the insurance industry) State Partner Texas 17 % 20 % 20 % (2018 consists of the legacy and new payment processing contracts) |
UNAUDITED QUARTERLY OPERATING R
UNAUDITED QUARTERLY OPERATING RESULTS | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY OPERATING RESULTS | UNAUDITED QUARTERLY OPERATING RESULTS The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year due to the lower number of business days in the quarter and a lower volume of business-to-government and citizen-to-government transactions during the holiday periods. For the Year Ended December 31, 2018 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: Portal revenues $ 80,791 $ 86,555 $ 80,884 $ 72,354 Software & services revenues 5,934 5,943 6,144 6,295 Total revenues 86,725 92,498 87,028 78,649 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 48,642 51,711 48,224 46,412 Cost of software & services revenues, exclusive of depreciation & amortization 2,228 2,235 2,226 2,354 Selling & administrative 13,150 14,003 14,690 14,848 Depreciation & amortization 2,065 2,145 2,441 2,466 Total operating expenses 66,085 70,094 67,581 66,080 Operating income 20,640 22,404 19,447 12,569 Other income: Interest income — 57 153 406 Income before income taxes 20,640 22,461 19,600 12,975 Income tax provision 5,132 5,450 3,698 3,127 Net income $ 15,508 $ 17,011 $ 15,902 $ 9,848 Basic net income per share $ 0.23 $ 0.25 $ 0.24 $ 0.15 Diluted net income per share $ 0.23 $ 0.25 $ 0.24 $ 0.15 Weighted average shares outstanding: Basic 66,323 66,541 66,562 66,569 Diluted 66,323 66,561 66,598 66,641 For the Year Ended December 31, 2017 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: Portal revenues $ 77,198 $ 79,374 $ 76,434 $ 78,345 Software & services revenues 5,979 5,952 8,099 5,127 Total revenues 83,177 85,326 84,533 83,472 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 47,032 49,009 47,377 48,154 Cost of software & services revenues, exclusive of depreciation & amortization 1,763 1,779 3,169 2,179 Selling & administrative 11,660 13,131 12,091 13,898 Depreciation & amortization 1,613 1,688 1,810 1,818 Total operating expenses 62,068 65,607 64,447 66,049 Operating income before income taxes 21,109 19,719 20,086 17,423 Income tax provision 7,124 6,950 6,066 6,583 Net income $ 13,985 $ 12,769 $ 14,020 $ 10,840 Basic net income per share $ 0.21 $ 0.19 $ 0.21 $ 0.16 Diluted net income per share $ 0.21 $ 0.19 $ 0.21 $ 0.16 Weighted average shares outstanding: Basic 66,046 66,248 66,267 66,270 Diluted 66,046 66,248 66,267 66,334 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT As previously disclosed, Robert Knapp stepped down as Chief Operating Officer of the Company on January 27, 2019 . In connection with Mr. Knapp's separation, he received post-termination severance payments and benefits under Section 5.2 of the Key Employee Agreement, as amended, between Mr. Knapp and the Company. As a result, the Company expects to record severance costs, including the acceleration of expense related to the vesting of certain equity awards, totaling approximately $2.6 million in the first quarter of 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating enterprise-wide digital government services on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide digital government services, other than on an enterprise-wide basis, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating digital government services on an outsourced basis including employee compensation and benefits (including stock-based compensation), payment processing fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all non-customer service related costs from the Company’s software & services businesses, including compensation and benefits, information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, and corporate-level expenses for market development and public relations. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include all the Company's direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Segment reporting | Segment reporting The Company reports segment information in accordance with authoritative accounting guidance for segment disclosures based upon the “management” approach, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company’s segments. The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating digital government services for state and local governments on an enterprise-wide basis. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers. See Note 13, Reportable Segments and Related Information, for additional information regarding our segment reporting. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily include cash on hand in the form of bank deposits. For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all non-restricted highly liquid instruments purchased with an original maturity of one month or less to be cash equivalents. |
Trade accounts receivable | Trade accounts receivable The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. |
Property and equipment | Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 8 years for furniture and fixtures, 3 - 10 years for equipment, 3 - 5 years for purchased software, and the lesser of the term of the lease or 5 years for leasehold improvements. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in results of operations for the period. The cost of maintenance and repairs is charged to expense as incurred. Significant betterments are capitalized. The Company periodically evaluates the carrying value of property and equipment to be held and used when events and circumstances indicate the carrying value may not be fully recoverable. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flow from the asset group is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined primarily using the anticipated cash flow discounted at a rate commensurate with the risk involved. Losses on assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. The Company did not record any significant impairment losses on property and equipment during the periods presented. |
Software development costs and intangible assets | ntangible assets, net The Company has finite-lived intangible assets that consist of capitalized software development costs and purchased software. In accordance with authoritative accounting guidance, intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method, unless another method of amortization is more appropriate. Such costs are included in depreciation & amortization in the consolidated statements of income. The Company carries intangible assets at cost less accumulated amortization. The estimated economic life for finite-lived intangible assets is typically 3 years from the date the software is placed in production. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any material impairment losses on intangible assets during the periods presented. |
Accrued expenses | Accrued expenses As of each balance sheet date, the Company estimates expenses which have been incurred but not yet paid or for which invoices have not yet been received. Significant components of accrued expenses consist primarily of payment processing fees, employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, and miscellaneous other accruals. |
Revenue recognition | Revenue recognition The Company accounts for revenue in accordance with ASC 606 , which the Company adopted on January 1, 2018. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales and usage-based taxes, if applicable, are excluded from revenues. Disaggregation of Revenue The Company currently earns revenues from three main sources: (i) transaction-based fees, which consist of IGS, DHR and other transaction-based revenues, (ii) software development & services and (iii) fixed fees for portal management services. The following table summarizes, by reportable and operating segment, our principal activities from which the Company generates revenue (in thousands): Reportable and Operating Segments Outsourced Portals Other Software & Services Consolidated Total December 31, 2018 IGS $ 203,247 $ — $ 203,247 DHR 100,241 — 100,241 Other — 24,316 24,316 Total transaction-based 303,488 24,316 327,804 Software development & services 12,146 — 12,146 Portal management 4,950 — 4,950 Total revenues $ 320,584 $ 24,316 $ 344,900 December 31, 2017 IGS $ 192,200 $ — $ 192,200 DHR 103,899 — 103,899 Other — 25,157 25,157 Total transaction-based 296,099 25,157 321,256 Software development & services 10,180 — 10,180 Portal management 5,072 — 5,072 Total revenues $ 311,351 $ 25,157 $ 336,508 December 31, 2016 IGS $ 174,470 $ — $ 174,470 DHR 105,463 — 105,463 Other — 20,917 20,917 Total transaction-based 279,933 20,917 300,850 Software development & services 11,965 — 11,965 Portal management 5,100 — 5,100 Total revenues $ 296,998 $ 20,917 $ 317,915 Transaction-based revenues The Company recognizes revenue from providing outsourced digital services to its government partners. Under these contracts, the Company agrees to provide continuous access to digital government services that allow consumers to complete secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The contractual promise to provide continuous access to each of these digital government services is a single stand-ready performance obligation. Transaction-based fees earned by the Company are typically usage-based and calculated based on the number of transactions processed each day at the contractual net fee earned by the Company for each transaction. These usage-based fees are deemed to be variable consideration that meets the practical expedient within ASC 606 whereby the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these arrangements, the usage-based fees are fully constrained and recognized once the uncertainties associated with the constraint are resolved, which is when the related transactions occur each day. The Company satisfies its performance obligation by providing access to applications over the contractual term, and by processing transactions as they are initiated by consumers. The performance obligation is satisfied on the day the Company provides the access and it is used by the consumer. In most of its transaction-based revenue arrangements, the Company acts as an agent and recognizes revenue on a net basis. The gross transaction fees collected by the Company from consumers on behalf of its government partners are not recognized as revenue but are accrued as accounts payable when the services are provided at the time of the transactions. The Company must remit a certain amount or a percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees from the consumer. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. Under certain contracts, the Company’s government partners may receive consideration for a portion of the transaction fee remitted to the Company. In circumstances where the Company receives a discernible benefit in the arrangement, the consideration paid to the government partner is recorded on a gross basis within costs of revenues. Otherwise, the consideration paid to the government partner is accounted for on a net basis as a reduction in the transaction-based fee recorded within revenue. Software development and services revenues The Company’s software development and services revenues primarily include revenues from providing software development and other time and materials services to our government partners. The Company identifies each performance obligation in its software development and services contracts at contract inception, which are generally combined into a single promise. The contract pricing is either at stated billing rates per hour or a fixed amount. These contracts are generally short-term in nature and not longer than one year in duration. For services provided under software development and services agreements that result in the transfer of control over time, the underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to the Company. The Company recognizes revenue on rate per hour contracts based on the amount billable to the customer, as the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. For fixed fee contracts, the Company utilizes the input method and recognizes revenue based on the labor expended to date relative to the total labor expected to satisfy the contract performance obligation. This input measure of progress is used because it best depicts the transfer of assets to the customer, which occurs as the Company incurs costs to deliver the promise in the contracts. Certain software development and service contracts include substantive customer acceptance provisions. In contracts that include substantive customer acceptance provisions, the Company recognizes revenue at a point in time upon customer acceptance. Under its software development and services contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of December 31, 2018 , the total transaction price allocated to unsatisfied performance obligations was approximately $2.8 million . Portal management revenues Portal management revenues primarily consist of revenues from providing recurring fixed fee services for the Company’s government partner in Indiana. This contract has a single performance obligation to provide a broad scope of services to manage the digital government services for the state of Indiana. The Company satisfies its performance obligation by providing services to the state over time. The contract can be terminated without a penalty by the state with a 30-day notice, and accordingly, the period over which the Company performs services is commensurate with a month to month contract. Consideration consists of a fixed-monthly fee that is recognized monthly as the performance obligation is satisfied. As of December 31, 2018 , the Company’s Indiana portal management contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. Unearned Revenues The Company records unearned revenues when cash payments are received or due in advance of the Company’s satisfaction of the performance obligation(s). At each balance sheet date, the Company determines the portion of unearned revenues that will be earned within one year and records that amount in other current liabilities in the consolidated balance sheets. The remainder, if any, is recorded in other long-term liabilities. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Unearned revenues at December 31, 2018 and 2017 were approximately $1.7 million and $1.4 million , respectively. The change in the deferred revenue balance for the year primarily reflects $5.2 million of cash payments received or due in advance of satisfying our performance obligations, offset by $4.9 million of revenues recognized that were included in the deferred revenue balance during in 2018. |
Stock-based compensation | Stock-based compensation The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award and recognizes an expense on a straight-line basis over the employee’s requisite service period for the entire award (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense ratably over the performance period based upon the probable number of shares expected to vest. See Note 12, Stock-based Compensation and Employee Benefit Plans, for additional information. |
Income taxes | Income taxes The Company, along with its wholly owned subsidiaries, files a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company does not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable, based on its technical merits. If the recognition threshold is met, the Company recognizes a tax benefit based upon the largest amount of the tax benefit that is more likely than not probable, determined by cumulative probability, of being realized upon settlement with the taxing authority. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. |
Fair value of financial instruments | Fair value of financial instruments The carrying values of the Company’s accounts receivable and accounts payable approximate fair value. |
Comprehensive income | Comprehensive income The Company has no components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is the same as its net income for all periods presented. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable. At December 31, 2018 and 2017 , LexisNexis Risk Solutions accounted for approximately 15% and 16% , respectively, of the Company’s total accounts receivable. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in current U.S. Generally Accepted Accounting Principles (“GAAP”) with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The ASU will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Expenses are recognized in the statement of income in a manner similar to current accounting guidance. ASU 2016-02, as amended by ASU No. 2018-11, Targeted Improvements , requires entities to adopt the standard using one of two modified retrospective approaches. 1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company will adopt the accounting standard on January 1, 2019 using the modified retrospective approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which allows the Company to not to reassess (i) whether expired or existing contracts contain a lease under the new standard, (ii) the lease classification for expired or existing leases or (iii) whether previously-capitalized initial direct costs would qualify for capitalization under the new standard. In addition, the Company will not elect to use hindsight during transition. The standard will have a material impact on the Company's consolidated balance sheets but will not have a material impact on the consolidated statements of income. The adoption of the standard is expected to result in the recognition of ROU assets and lease liabilities of approximately $12.6 million and $13.0 million , respectively, as of January 1, 2019. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers ( “ ASC 606 ” ) , a new standard related to revenue recognition. Under this standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires expanded disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. On January 1, 2018, the Company adopted ASC 606, and all the related amendments, using the modified retrospective method for all contracts not completed as of the date of adoption. The adoption of ASC 606 represents a change in accounting principle for portal software development and services contracts that will more closely align revenue recognition with the delivery of Company’s services, which under certain contracts will result in the recognition of revenue over time as opposed to at a point in time. Upon adoption, there was not a significant cumulative adjustment to retained earnings on the Company’s balance sheet for this change in accounting principle. Under the modified retrospective method, the comparative information was not restated and continues to be reported under the accounting standards in effect for those periods. The impact to revenues for the year ended December 31, 2018 was not significant as a result of applying ASC 606. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The Company currently earns revenues from three main sources: (i) transaction-based fees, which consist of IGS, DHR and other transaction-based revenues, (ii) software development & services and (iii) fixed fees for portal management services. The following table summarizes, by reportable and operating segment, our principal activities from which the Company generates revenue (in thousands): Reportable and Operating Segments Outsourced Portals Other Software & Services Consolidated Total December 31, 2018 IGS $ 203,247 $ — $ 203,247 DHR 100,241 — 100,241 Other — 24,316 24,316 Total transaction-based 303,488 24,316 327,804 Software development & services 12,146 — 12,146 Portal management 4,950 — 4,950 Total revenues $ 320,584 $ 24,316 $ 344,900 December 31, 2017 IGS $ 192,200 $ — $ 192,200 DHR 103,899 — 103,899 Other — 25,157 25,157 Total transaction-based 296,099 25,157 321,256 Software development & services 10,180 — 10,180 Portal management 5,072 — 5,072 Total revenues $ 311,351 $ 25,157 $ 336,508 December 31, 2016 IGS $ 174,470 $ — $ 174,470 DHR 105,463 — 105,463 Other — 20,917 20,917 Total transaction-based 279,933 20,917 300,850 Software development & services 11,965 — 11,965 Portal management 5,100 — 5,100 Total revenues $ 296,998 $ 20,917 $ 317,915 |
OUTSOURCED GOVERNMENT CONTRAC_2
OUTSOURCED GOVERNMENT CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contractors [Abstract] | |
Summary of state contracts | The following is a summary of the state contracts through which the Company generates meaningful revenue and has been contracted to provide enterprise-wide digital government services to multiple government agencies: NIC Enterprise Contract State Year Services Commenced Contract Expiration Date Renewal Options Through NICUSA, IL Division Illinois 2017 6/29/2023 6/29/2027 Louisiana Interactive, LLC Louisiana 2015 1/28/2020 Connecticut Interactive, LLC Connecticut 2014 1/9/2020 Wisconsin Interactive Network, LLC Wisconsin 2013 5/12/2021 5/13/2023 Pennsylvania Interactive, LLC Pennsylvania 2012 11/30/2019 11/30/2022 NICUSA, OR Division Oregon 2011 11/22/2021 NICUSA, MD Division Maryland 2011 8/10/2019 Mississippi Interactive, LLC Mississippi 2011 12/31/2019 12/31/2021 New Jersey Interactive, LLC New Jersey 2009 4/30/2020 4/30/2022 West Virginia Interactive, LLC West Virginia 2007 6/30/2021 6/30/2024 Vermont Information Consortium, LLC Vermont 2006 6/8/2019 Colorado Interactive, LLC Colorado 2005 4/30/2022 4/30/2023 South Carolina Interactive, LLC South Carolina 2005 7/15/2019 7/15/2021 Kentucky Interactive, LLC Kentucky 2003 8/31/2020 Alabama Interactive, LLC Alabama 2002 3/19/2020 3/19/2022 Rhode Island Interactive, LLC Rhode Island 2001 7/1/2019 Oklahoma Interactive, LLC Oklahoma 2001 3/31/2020 Montana Interactive, LLC Montana 2001 12/31/2019 12/31/2020 Hawaii Information Consortium, LLC Hawaii 2000 1/3/2020 Idaho Information Consortium, LLC Idaho 2000 6/30/2019 Utah Interactive, LLC Utah 1999 6/5/2019 Maine Information Network, LLC Maine 1999 6/30/2020 Arkansas Information Consortium, LLC Arkansas 1997 6/30/2019 Indiana Interactive, LLC Indiana 1995 10/24/2021 Nebraska Interactive, LLC Nebraska 1995 3/31/2024 3/31/2026 Kansas Information Consortium, LLC Kansas 1992 12/31/2022 12/31/2026 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (amounts in thousands except per share amounts): December 31, 2018 2017 2016 Numerator: Net income $ 58,269 $ 51,614 $ 55,833 Less: Income allocated to participating securities (629 ) (479 ) (492 ) Net income available to common stockholders $ 57,640 $ 51,135 $ 55,341 Denominator: Weighted average shares - basic 66,499 66,209 65,913 Performance-based restricted stock awards 61 57 53 Weighted average shares - diluted 66,560 66,266 65,966 Basic net income per share: $ 0.87 $ 0.77 $ 0.84 Diluted net income per share: $ 0.87 $ 0.77 $ 0.84 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Software development cost $ 22,190 $ (11,647 ) $ 10,543 $ 13,610 $ (8,396 ) $ 5,214 Purchased software 3,555 (494 ) 3,061 — — — Total $ 25,745 $ (12,141 ) $ 13,604 $ 13,610 $ (8,396 ) $ 5,214 |
Estimated Amortization Expense in Future Years | The total estimated intangible asset amortization expense in future years is as follows (in thousands): Fiscal Year 2019 $ 6,003 2020 4,886 2021 2,715 $ 13,604 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consisted of the following at December 31 (in thousands): 2018 2017 Equipment $ 24,548 $ 30,411 Purchased software 8,971 10,028 Furniture and fixtures 5,614 5,669 Leasehold improvements 2,221 2,249 41,354 48,357 Less accumulated depreciation (31,098 ) (38,051 ) Property and equipment, net $ 10,256 $ 10,306 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future lease payments | Future minimum lease payments under all noncancelable operating leases at December 31, 2018 are as follows (in thousands): Fiscal Year 2019 $ 4,673 2020 3,403 2021 2,604 2022 2,082 2023 698 Thereafter 690 Total minimum lease payments $ 14,150 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of dividends declared | The Company's Board of Directors declared the following dividends: Declaration Date Dividend per Share Record Date Payment Date Amount (in thousands) 2018 Year-end January 29, 2018 $0.08 March 6, 2018 March 20, 2018 $5,370 May 1, 2018 0.08 June 5, 2018 June 19, 2018 5,384 July 30, 2018 0.08 September 5, 2018 September 19, 2018 5,384 October 28, 2018 0.08 December 4, 2018 December 18, 2018 5,383 2017 Year-end January 30, 2017 $0.08 March 7, 2017 March 21, 2017 $5,342 May 2, 2017 0.08 June 6, 2017 June 20, 2017 5,350 July 31, 2017 0.08 September 6, 2017 September 20, 2017 5,351 October 30, 2017 0.08 December 5, 2017 December 19, 2017 5,350 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 Current income taxes: Federal $ 13,704 $ 22,533 $ 20,433 State 2,255 2,550 2,478 Total 15,959 25,083 22,911 Deferred income taxes: Federal 1,466 1,576 (857 ) State (18 ) 64 (29 ) Total 1,448 1,640 (886 ) Total income tax provision $ 17,407 $ 26,723 $ 22,025 |
Schedule of deferred income tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in thousands): 2018 2017 Deferred tax assets: Stock-based compensation $ 1,156 $ 997 Federal benefit of state uncertain tax positions 954 919 Accrued vacation 550 660 Deferred rent 81 119 State net operating loss carryforwards 272 266 Allowance for doubtful accounts 240 135 Other 662 316 Gross deferred tax assets 3,915 3,412 Less: Valuation allowance (367 ) (257 ) Total deferred tax assets 3,548 3,155 Deferred tax liabilities: Property and equipment (1,834 ) (1,256 ) Capitalized software development costs (2,495 ) (1,232 ) Total deferred tax liabilities $ (4,329 ) $ (2,488 ) Net deferred tax (liability) asset $ (781 ) $ 667 |
Schedule of effective tax rates | The following table reconciles the statutory federal income tax rate and the effective income tax rate indicated by the consolidated statements of income: Year Ended December 31, 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % Domestic production activities deductions — % (2.6 )% (8.7 )% Federal and state tax credits (2.3 )% (2.0 )% (2.0 )% Tax deficit (benefit) from restricted stock vestings 0.3 % (0.7 )% — % State income taxes 2.3 % 1.8 % 1.4 % Uncertain tax positions 0.8 % 1.6 % 3.3 % Nondeductible expenses 0.8 % 0.7 % 0.6 % Other, net 0.1 % 0.3 % (1.3 )% Effective federal and state income tax rate 23.0 % 34.1 % 28.3 % |
Schedule of unrecognized tax benefits | The following table provides a reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits (included in other long-term liabilities in the consolidated balance sheets) for the years ended December 31, 2018 , 2017 and 2016 (in thousands): 2018 2017 2016 Balance at January 1 $ 8,020 $ 6,599 $ 3,721 Additions for tax positions of prior years 459 576 1,754 Additions for tax positions of current years 1,248 1,646 1,589 Expiration of the statute of limitations (1,024 ) (788 ) (439 ) Reductions for tax positions of prior years (52 ) (13 ) (26 ) Balance at December 31 $ 8,651 $ 8,020 $ 6,599 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | The following table presents stock-based compensation expense included in the Company’s consolidated statements of income (in thousands): Year Ended December 31, 2018 2017 2016 Cost of portal revenues, exclusive of depreciation & amortization $ 1,516 $ 1,276 $ 1,390 Cost of software & services revenues, exclusive of depreciation & amortization 151 86 62 Selling & administrative 4,671 4,102 4,545 Stock-based compensation expense before income taxes $ 6,338 $ 5,464 $ 5,997 |
Schedule of service-based restricted stock activity | A summary of service-based restricted stock activity for the year ended December 31, 2018 is presented below: Service-based Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 609,886 $ 19.59 Granted 404,638 $ 14.15 Vested (264,583 ) $ 19.29 Canceled (32,862 ) $ 16.75 Outstanding at December 31, 2018 717,079 $ 16.58 Expected to vest at December 31, 2018 717,079 $ 16.58 |
Schedule of performance-based restricted stock activity | A summary of performance-based restricted stock activity for the year ended December 31, 2018 is presented below: Performance- based Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 340,689 $ 18.91 Granted 177,730 $ 13.70 Vested — $ 17.11 Canceled (91,820 ) $ 17.11 Outstanding at December 31, 2018 426,599 $ 17.12 Expected to vest at December 31, 2018 93,731 $ 17.39 |
Schedule of assumptions used to estimate fair value of offerings | The fair values of the offerings were estimated on the dates of grant using the Black-Scholes model using the assumptions in the following table. March 31, 2018 Offering March 31, 2017 Offering March 31, 2016 Offering Risk-free interest rate 2.08 % 1.02 % 0.62 % Expected dividend yield 2.06 % 2.69 % 3.04 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 35.51 % 23.07 % 28.54 % Weighted average fair value of ESPP rights $ 3.75 $ 4.58 $ 4.40 |
REPORTABLE SEGMENTS AND RELAT_2
REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of financial information for reportable and operating segments | The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2018 Revenues $ 320,584 $ 24,316 $ — $ 344,900 Costs & expenses 194,989 9,043 56,691 260,723 Depreciation & amortization 2,985 100 6,032 9,117 Operating income (loss) $ 122,610 $ 15,173 $ (62,723 ) $ 75,060 2017 Revenues $ 311,351 $ 25,157 $ — $ 336,508 Costs & expenses 191,572 8,890 50,780 251,242 Depreciation & amortization 2,698 97 4,134 6,929 Operating income (loss) $ 117,081 $ 16,170 $ (54,914 ) $ 78,337 2016 Revenues $ 296,998 $ 20,917 $ — $ 317,915 Costs & expenses 180,287 5,958 47,063 233,308 Depreciation & amortization 3,230 77 3,442 6,749 Operating income (loss) $ 113,481 $ 14,882 $ (50,505 ) $ 77,858 |
Schedule of concentration risk by total consolidated revenues | The following table identifies each type of service, consumer and state that accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31: Percentage of Total Consolidated Revenues 2018 2017 2016 Type of Service Motor Vehicle Driver History Record Retrieval 29 % 31 % 33 % Motor Vehicle Registrations 14 % 14 % 14 % Consumer LexisNexis Risk Solutions 19 % 19 % 22 % (Resells motor vehicle driver history records to the insurance industry) State Partner Texas 17 % 20 % 20 % (2018 consists of the legacy and new payment processing contracts) |
UNAUDITED QUARTERLY OPERATING_2
UNAUDITED QUARTERLY OPERATING RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly operating results | The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year due to the lower number of business days in the quarter and a lower volume of business-to-government and citizen-to-government transactions during the holiday periods. For the Year Ended December 31, 2018 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: Portal revenues $ 80,791 $ 86,555 $ 80,884 $ 72,354 Software & services revenues 5,934 5,943 6,144 6,295 Total revenues 86,725 92,498 87,028 78,649 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 48,642 51,711 48,224 46,412 Cost of software & services revenues, exclusive of depreciation & amortization 2,228 2,235 2,226 2,354 Selling & administrative 13,150 14,003 14,690 14,848 Depreciation & amortization 2,065 2,145 2,441 2,466 Total operating expenses 66,085 70,094 67,581 66,080 Operating income 20,640 22,404 19,447 12,569 Other income: Interest income — 57 153 406 Income before income taxes 20,640 22,461 19,600 12,975 Income tax provision 5,132 5,450 3,698 3,127 Net income $ 15,508 $ 17,011 $ 15,902 $ 9,848 Basic net income per share $ 0.23 $ 0.25 $ 0.24 $ 0.15 Diluted net income per share $ 0.23 $ 0.25 $ 0.24 $ 0.15 Weighted average shares outstanding: Basic 66,323 66,541 66,562 66,569 Diluted 66,323 66,561 66,598 66,641 For the Year Ended December 31, 2017 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: Portal revenues $ 77,198 $ 79,374 $ 76,434 $ 78,345 Software & services revenues 5,979 5,952 8,099 5,127 Total revenues 83,177 85,326 84,533 83,472 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 47,032 49,009 47,377 48,154 Cost of software & services revenues, exclusive of depreciation & amortization 1,763 1,779 3,169 2,179 Selling & administrative 11,660 13,131 12,091 13,898 Depreciation & amortization 1,613 1,688 1,810 1,818 Total operating expenses 62,068 65,607 64,447 66,049 Operating income before income taxes 21,109 19,719 20,086 17,423 Income tax provision 7,124 6,950 6,066 6,583 Net income $ 13,985 $ 12,769 $ 14,020 $ 10,840 Basic net income per share $ 0.21 $ 0.19 $ 0.21 $ 0.16 Diluted net income per share $ 0.21 $ 0.19 $ 0.21 $ 0.16 Weighted average shares outstanding: Basic 66,046 66,248 66,267 66,270 Diluted 66,046 66,248 66,267 66,334 |
THE COMPANY (Detail)
THE COMPANY (Detail) | Dec. 31, 2018channel |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business channels (in channels) | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)category | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of revenue and cost categories (in categories) | category | 2 | ||
Allowance for doubtful accounts | $ 1 | $ 0.6 | |
Contract period | 1 year | ||
Revenue, Remaining Performance Obligation, Amount | $ 2.8 | ||
Unearned revenue | 1.7 | $ 1.4 | |
Cash payments received | 5.2 | ||
Revenues recognized, previously included in deferred revenues | $ 4.9 | ||
Accounting Standards Update 2016-02 | Forecast | |||
Significant Accounting Policies [Line Items] | |||
Right-of-use assets | $ 12.6 | ||
Operating lease liability | $ 13 | ||
Accounts receivable | Credit concentration risk | LexisNexis Risk Solutions | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 15.00% | 16.00% | |
Software development cost | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of intangible asset | 3 years | ||
Furniture and Fixtures | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 8 years | ||
Equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Purchased Software | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Purchased Software | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years | ||
Leasehold Improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years | ||
Indiana | Portal | |||
Significant Accounting Policies [Line Items] | |||
Performance obligation, timing | 1 month |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue | |||||||||||
Transaction based revenues | $ 327,804 | $ 321,256 | $ 300,850 | ||||||||
Total revenues | $ 78,649 | $ 87,028 | $ 92,498 | $ 86,725 | $ 83,472 | $ 84,533 | $ 85,326 | $ 83,177 | 344,900 | 336,508 | 317,915 |
IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 203,247 | 192,200 | 174,470 | ||||||||
DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 100,241 | 103,899 | 105,463 | ||||||||
Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 24,316 | 25,157 | 20,917 | ||||||||
Software development & services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 12,146 | 10,180 | 11,965 | ||||||||
Portal management | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 4,950 | 5,072 | 5,100 | ||||||||
Outsourced Portals | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 303,488 | 296,099 | 279,933 | ||||||||
Total revenues | 320,584 | 311,351 | 296,998 | ||||||||
Outsourced Portals | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 203,247 | 192,200 | 174,470 | ||||||||
Outsourced Portals | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 100,241 | 103,899 | 105,463 | ||||||||
Outsourced Portals | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 0 | 0 | 0 | ||||||||
Outsourced Portals | Software development & services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 12,146 | 10,180 | 11,965 | ||||||||
Outsourced Portals | Portal management | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 4,950 | 5,072 | 5,100 | ||||||||
Other Software & Services | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 24,316 | 25,157 | 20,917 | ||||||||
Total revenues | 24,316 | 25,157 | 20,917 | ||||||||
Other Software & Services | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 0 | 0 | 0 | ||||||||
Other Software & Services | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 0 | 0 | 0 | ||||||||
Other Software & Services | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Transaction based revenues | 24,316 | 25,157 | 20,917 | ||||||||
Other Software & Services | Software development & services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Other Software & Services | Portal management | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 |
OUTSOURCED GOVERNMENT CONTRAC_3
OUTSOURCED GOVERNMENT CONTRACTS (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Contracts [Line Items] | |||
Performance bond commitments | $ 5.8 | ||
Contract period | 1 year | ||
Texas NICUSA, LLC | |||
Contracts [Line Items] | |||
Severance costs | $ 1 | ||
NICUSA, TN Division | |||
Contracts [Line Items] | |||
Portal revenues | $ 1.8 | $ 7.5 | |
Iowa Interactive, LLC | |||
Contracts [Line Items] | |||
Portal revenues | $ 1.6 | ||
Payment processing services | Government contracts concentration risk | Consolidated revenues | Texas NICUSA, LLC | |||
Contracts [Line Items] | |||
Concentration risk percentage | 14.00% | 20.00% | 20.00% |
Portal revenues | $ 49 | $ 65.7 | $ 62.2 |
Contracts that can be terminated without cause | |||
Contracts [Line Items] | |||
Number of enterprise-wide outsourced portal and digital government services (in contracts) | contract | 15 | ||
Contracts that can be terminated without cause | Government contracts concentration risk | Consolidated revenues | |||
Contracts [Line Items] | |||
Concentration risk percentage | 45.00% | ||
Expiring contracts | |||
Contracts [Line Items] | |||
Number of enterprise-wide outsourced portal and digital government services that expire within the 12-month period (in contracts) | contract | 10 | ||
Contract expiration period following year end | 12 months | ||
Expiring contracts | Government contracts concentration risk | Consolidated revenues | |||
Contracts [Line Items] | |||
Concentration risk percentage | 31.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Unvested service-based restricted stock awards included in the calculation of earnings per share (in shares) | 700 | 600 | 600 | ||||||||
Numerator: | |||||||||||
Net income | $ 9,848 | $ 15,902 | $ 17,011 | $ 15,508 | $ 10,840 | $ 14,020 | $ 12,769 | $ 13,985 | $ 58,269 | $ 51,614 | $ 55,833 |
Less: Income allocated to participating securities | (629) | (479) | (492) | ||||||||
Net income available to common stockholders | $ 57,640 | $ 51,135 | $ 55,341 | ||||||||
Denominator: | |||||||||||
Basic (in shares) | 66,569 | 66,562 | 66,541 | 66,323 | 66,270 | 66,267 | 66,248 | 66,046 | 66,499 | 66,209 | 65,913 |
Shares issuable in lieu of dividend payments on performance-based restricted stock awards (in shares) | 61 | 57 | 53 | ||||||||
Weighted average shares - diluted (in shares) | 66,641 | 66,598 | 66,561 | 66,323 | 66,334 | 66,267 | 66,248 | 66,046 | 66,560 | 66,266 | 65,966 |
Basic net income per share: | |||||||||||
Basic net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
Diluted net income per share: | |||||||||||
Diluted net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
ASSET ACQUISITION (Details)
ASSET ACQUISITION (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived intangible assets acquired | $ 3.6 |
Contingent consideration | $ 3.5 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Capitalized Software (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 25,745 | $ 13,610 |
Accumulated Amortization | (12,141) | (8,396) |
Net Book Value | 13,604 | 5,214 |
Finite-lived intangible assets acquired | 3,600 | |
Software development cost | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 22,190 | 13,610 |
Accumulated Amortization | (11,647) | (8,396) |
Net Book Value | 10,543 | 5,214 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,555 | 0 |
Accumulated Amortization | (494) | 0 |
Net Book Value | $ 3,061 | $ 0 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
2,019 | $ 6,003 | ||
2,020 | 4,886 | ||
2,021 | 2,715 | ||
Net Book Value | 13,604 | $ 5,214 | |
Software development cost | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of internal use capitalized software | 3,700 | 1,900 | $ 1,300 |
Net Book Value | $ 3,061 | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Equipment | $ 24,548 | $ 30,411 | |
Purchased software | 8,971 | 10,028 | |
Furniture and fixtures | 5,614 | 5,669 | |
Leasehold improvements | 2,221 | 2,249 | |
Property and equipment, gross | 41,354 | 48,357 | |
Less accumulated depreciation | (31,098) | (38,051) | |
Property and equipment, net | 10,256 | 10,306 | |
Depreciation expense | $ 5,400 | $ 5,000 | $ 5,500 |
DEBT OBLIGATIONS AND COLLATER_2
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS (Details) - USD ($) | Apr. 28, 2017 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Letters of credit, maximum effective in force period | 1 year | |
Performance bond commitments | $ 5,800,000 | |
Third Amended Credit Agreement | Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.15% | |
Third Amended Credit Agreement | Revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.25% | |
Third Amended Credit Agreement | Revolving credit facility | Letter of credit | Consolidated leverage ratio is less than or equal to 1.50:1 | ||
Debt Instrument [Line Items] | ||
Consolidated leverage ratio | 150.00% | |
Third Amended Credit Agreement | Revolving credit facility | Letter of credit | Consolidated leverage ratio is greater than 1.50:1 | ||
Debt Instrument [Line Items] | ||
Consolidated leverage ratio | 150.00% | |
Unsecured Credit Agreement | Covenant Requirement | ||
Debt Instrument [Line Items] | ||
Consolidated tangible net worth required | $ 36,000,000 | |
Consolidated leverage ratio | 150.00% | |
Unsecured Credit Agreement | Letter of credit | ||
Debt Instrument [Line Items] | ||
Credit facility, available borrowing capacity | 4,800,000 | |
Unsecured Credit Agreement | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Credit facility, outstanding letters of credit | 200,000 | |
Credit facility, available borrowing capacity | 9,800,000 | |
Credit facility, increase available capacity under the credit agreement | 50,000,000 | |
Credit card | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 1,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,019 | $ 4,673 | ||
2,020 | 3,403 | ||
2,021 | 2,604 | ||
2,022 | 2,082 | ||
2,023 | 698 | ||
Thereafter | 690 | ||
Total minimum lease payments | 14,150 | ||
Rent expense for operating leases | $ 5,300 | $ 5,100 | $ 4,900 |
STOCKHOLDERS' EQUITY (Detail)
STOCKHOLDERS' EQUITY (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 28, 2019 | Nov. 01, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders Equity Note [Line Items] | |||||||||||||
Quarterly cash dividends approved for subsequent declaration (in usd per share) | $ 0.08 | ||||||||||||
Dividends declared (in usd per share) | $ 0.65 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | ||||
Dividend payment | $ 43,300 | $ 5,383 | $ 5,384 | $ 5,384 | $ 5,370 | $ 5,350 | $ 5,351 | $ 5,350 | $ 5,342 | $ 21,521 | $ 21,393 | $ 43,301 | |
Subsequent event | |||||||||||||
Stockholders Equity Note [Line Items] | |||||||||||||
Dividends declared (in usd per share) | $ 0.08 | ||||||||||||
Dividend payment | $ 5,400 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income taxes: | |||||||||||
Federal | $ 13,704 | $ 22,533 | $ 20,433 | ||||||||
State | 2,255 | 2,550 | 2,478 | ||||||||
Total | 15,959 | 25,083 | 22,911 | ||||||||
Deferred income taxes: | |||||||||||
Federal | 1,466 | 1,576 | (857) | ||||||||
State | (18) | 64 | (29) | ||||||||
Total | 1,448 | 1,640 | (886) | ||||||||
Total income tax provision | $ 3,127 | $ 3,698 | $ 5,450 | $ 5,132 | $ 6,583 | $ 6,066 | $ 6,950 | $ 7,124 | $ 17,407 | $ 26,723 | $ 22,025 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Stock-based compensation | $ 1,156 | $ 997 |
Federal benefit of state uncertain tax positions | 954 | 919 |
Accrued vacation | 550 | 660 |
Deferred rent | 81 | 119 |
State net operating loss carryforwards | 272 | 266 |
Allowance for doubtful accounts | 240 | 135 |
Other | 662 | 316 |
Gross deferred tax assets | 3,915 | 3,412 |
Less: Valuation allowance | (367) | (257) |
Total deferred tax assets | 3,548 | 3,155 |
Deferred tax liabilities: | ||
Property and equipment | (1,834) | (1,256) |
Capitalized software development costs | (2,495) | (1,232) |
Total deferred tax liabilities | (4,329) | (2,488) |
Net deferred tax (liability) asset | $ (781) | |
Net deferred tax (liability) asset | $ 667 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||||||||||
Tax Cuts And Jobs Act of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense | $ 300 | ||||||||||||
Deferred tax asset valuation allowance | $ 367 | $ 257 | $ 367 | 257 | |||||||||
Income tax provision (benefit) | (3,127) | $ (3,698) | $ (5,450) | $ (5,132) | $ (6,583) | $ (6,066) | $ (6,950) | $ (7,124) | (17,407) | (26,723) | $ (22,025) | ||
Unrecognized tax benefits | $ 7,700 | 7,700 | |||||||||||
Tax deficit recognized within income tax expense | $ 300 | ||||||||||||
Excess tax benefits related to share-based compensation recognized within income tax expense | $ 500 | ||||||||||||
Excess tax benefits relating to stock-based compensation | $ 590 | ||||||||||||
State income tax returns | Minimum | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Tax examination period | 3 years | ||||||||||||
State income tax returns | Maximum | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Tax examination period | 5 years | ||||||||||||
Tax Year 2016 | Domestic Production Activity | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income tax provision (benefit) | $ 1,500 | ||||||||||||
Tax Year 2015 | Domestic Production Activity | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income tax provision (benefit) | $ 1,400 | ||||||||||||
Tax Year 2014 | Domestic Production Activity | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income tax provision (benefit) | $ 1,200 | ||||||||||||
Tax Year 2013 | Domestic Production Activity | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income tax provision (benefit) | $ 1,000 |
INCOME TAXES - Statutory Federa
INCOME TAXES - Statutory Federal Income Tax Rate and Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Domestic production activities deductions | (0.00%) | (2.60%) | (8.70%) |
Federal and state tax credits | (2.30%) | (2.00%) | (2.00%) |
Tax deficit (benefit) from restricted stock vestings | 0.30% | (0.70%) | (0.00%) |
State income taxes | 2.30% | 1.80% | 1.40% |
Uncertain tax positions | 0.80% | 1.60% | 3.30% |
Nondeductible expenses | 0.80% | 0.70% | 0.60% |
Other, net | 0.10% | 0.30% | (1.30%) |
Effective federal and state income tax rate | 23.00% | 34.10% | 28.30% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 8,020 | $ 6,599 | $ 3,721 |
Additions for tax positions of prior years | 459 | 576 | 1,754 |
Additions for tax positions of current years | 1,248 | 1,646 | 1,589 |
Expiration of the statute of limitations | (1,024) | (788) | (439) |
Reductions for tax positions of prior years | (52) | (13) | (26) |
Unrecognized tax benefits, ending balance | $ 8,651 | $ 8,020 | $ 6,599 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,338 | $ 5,464 | $ 5,997 |
Revenue | Portal | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,516 | 1,276 | 1,390 |
Revenue | Software & services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 151 | 86 | 62 |
Selling & administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,671 | $ 4,102 | $ 4,545 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Stock Option and Restricted Stock Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, shares authorized (in shares) | 15,825,223 | ||||||
Share based compensation, shares authorized for future grant (in shares) | 3,482,300 | ||||||
Intrinsic value of nonvested restricted stock awards expected to vest | $ 10,100 | ||||||
Unrecognized compensation related to non-vested awards | $ 8,200 | ||||||
Unrecognized compensation costs, weighted average period expected to be recognized (years) | 2 years | ||||||
Proceeds from employee common stock purchases | $ 1,382 | $ 1,330 | $ 1,114 | ||||
Service-based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares granted in period (in shares) | 404,638 | ||||||
Forfeited shares (in shares) | 32,862 | ||||||
Share based compensation, fair value of restricted stock vested | $ 5,100 | $ 4,700 | $ 4,600 | ||||
Granted (in usd per share) | $ 14.15 | $ 21.46 | $ 17.67 | ||||
Performance- based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares granted in period (in shares) | 177,730 | ||||||
Share based compensation, annual award vesting period from date of grant | 3 years | 3 years | 3 years | ||||
Forfeited shares (in shares) | 91,820 | ||||||
Share based compensation, fair value of restricted stock vested | $ 0 | $ 1,200 | $ 1,600 | ||||
Granted (in usd per share) | $ 13.70 | $ 22 | $ 17.62 | ||||
Performance Period 2016 to 2018 | Performance- based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares earned in period (in shares) | 64,846 | ||||||
Share based compensation, dividend earned on shares subject to the awards (in shares) | 4,226 | ||||||
Forfeited shares (in shares) | 73,345 | ||||||
Performance Period 2015 to 2017 | Performance- based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited shares (in shares) | 91,820 | ||||||
Performance period 2014 to 2016 | Performance- based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares earned in period (in shares) | 59,437 | ||||||
Share based compensation, dividend earned on shares subject to the awards (in shares) | 4,945 | ||||||
Forfeited shares (in shares) | 21,503 | ||||||
Employees and executives | Service based awards | Service-based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares granted in period (in shares) | 350,054 | ||||||
Share based compensation, award granted in period grant-date fair value | $ 4,900 | ||||||
Share based compensation, annual award vesting period from date of grant | 1 year | ||||||
Employees and executives | Service based awards | Service-based Restricted Shares | Share-based Compensation Award, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award annual installment vesting rate | 25.00% | ||||||
Employees and executives | Performance based awards | Service-based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares granted in period (in shares) | 177,730 | ||||||
Share based compensation, award granted in period grant-date fair value | $ 2,400 | ||||||
Share based compensation, annual award vesting period from date of grant | 3 years | ||||||
Non employee directors | Service based awards | Service-based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, award shares granted in period (in shares) | 54,584 | ||||||
Share based compensation, award granted in period grant-date fair value | $ 800 | ||||||
Share based compensation, annual award vesting period from date of grant | 1 year | ||||||
Employee stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, shares authorized (in shares) | 2,321,688 | ||||||
Proceeds from employee common stock purchases | $ 1,400 | $ 1,300 | $ 1,100 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Summary of Service-Based Restricted Activity (Details) - Service-based Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service-based Restricted Shares | |||
Outstanding beginning of period (in shares) | 609,886 | ||
Granted (in shares) | 404,638 | ||
Vested (in shares) | (264,583) | ||
Canceled (in shares) | (32,862) | ||
Outstanding end of period (in shares) | 717,079 | 609,886 | |
Expected to vest (in shares) | 717,079 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding beginning of period (in usd per share) | $ 19.59 | ||
Granted (in usd per share) | 14.15 | $ 21.46 | $ 17.67 |
Vested (in usd per share) | 19.29 | ||
Canceled (in usd per share) | 16.75 | ||
Outstanding end of period (in usd per share) | 16.58 | $ 19.59 | |
Expected to vest (in usd per share) | $ 16.58 |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Summary of Performance-Based Restricted Stock Activity (Details) - Performance- based Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance- based Restricted Shares | |||
Outstanding beginning of period (in shares) | 340,689 | ||
Granted (in shares) | 177,730 | ||
Vested (in shares) | 0 | ||
Canceled (in shares) | (91,820) | ||
Outstanding end of period (in shares) | 426,599 | 340,689 | |
Expected to vest (in shares) | 93,731 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding beginning of period (in usd per share) | $ 18.91 | ||
Granted (in usd per share) | 13.70 | $ 22 | $ 17.62 |
Vested (in usd per share) | 17.11 | ||
Canceled (in usd per share) | 17.11 | ||
Outstanding end of period (in usd per share) | 17.12 | $ 18.91 | |
Expected to vest (in usd per share) | $ 17.39 |
STOCK-BASED COMPENSATION AND _7
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Apr. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, shares authorized (in shares) | 15,825,223 | ||||||
Percentage of compensation eligible employees can use to purchase common stock, maximum | 15.00% | 15.00% | 15.00% | ||||
Compensation amount that eligible employees can use to purchase common stock | $ 25,000 | $ 25,000 | $ 25,000 | ||||
Percentage of fair market value eligible employees can purchase common stock as defined, minimum | 85.00% | 85.00% | 85.00% | ||||
Proceeds from employee common stock purchases | $ 1,382,000 | $ 1,330,000 | $ 1,114,000 | ||||
Employee stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, shares authorized (in shares) | 2,321,688 | ||||||
Employee stock purchase plan, shares purchased (in shares) | 122,152 | 86,998 | 74,976 | ||||
Employee stock purchase plan, per share price (in usd per share) | $ 11.31 | $ 15.29 | $ 14.86 | $ 13.30 | |||
Proceeds from employee common stock purchases | $ 1,400,000 | $ 1,300,000 | $ 1,100,000 |
STOCK-BASED COMPENSATION AND _8
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Assumptions Used to Estimate Grant Date Fair Value Using the Black-Scholes Model (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.08% | 1.02% | 0.62% |
Expected dividend yield | 2.06% | 2.69% | 3.04% |
Expected life | 1 year | 1 year | 1 year |
Expected stock price volatility | 35.51% | 23.07% | 28.54% |
Weighted average fair value of ESPP rights (usd per share) | $ 3.75 | $ 4.58 | $ 4.40 |
STOCK-BASED COMPENSATION AND _9
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Defined Contribution 401(k) Profit Sharing Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)hour | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined contribution plan, eligibility, hours of service (in hours) | hour | 1,000 | ||
Defined Contribution 401(k) Profit Sharing Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 5.00% | ||
Defined contribution plan, cost | $ | $ 2.7 | $ 2.7 | $ 2.5 |
REPORTABLE SEGMENTS AND RELAT_3
REPORTABLE SEGMENTS AND RELATED INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 1 |
REPORTABLE SEGMENTS AND RELAT_4
REPORTABLE SEGMENTS AND RELATED INFORMATION - Summary of Financial Information for Reportable and Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 78,649 | $ 87,028 | $ 92,498 | $ 86,725 | $ 83,472 | $ 84,533 | $ 85,326 | $ 83,177 | $ 344,900 | $ 336,508 | $ 317,915 |
Costs & expenses | 260,723 | 251,242 | 233,308 | ||||||||
Depreciation & amortization | 2,466 | 2,441 | 2,145 | 2,065 | 1,818 | 1,810 | 1,688 | 1,613 | 9,117 | 6,929 | 6,749 |
Operating income (loss) | $ 12,569 | $ 19,447 | $ 22,404 | $ 20,640 | $ 17,423 | $ 20,086 | $ 19,719 | $ 21,109 | 75,060 | 78,337 | 77,858 |
Outsourced Portals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 320,584 | 311,351 | 296,998 | ||||||||
Operating Segments | Outsourced Portals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 320,584 | 311,351 | 296,998 | ||||||||
Costs & expenses | 194,989 | 191,572 | 180,287 | ||||||||
Depreciation & amortization | 2,985 | 2,698 | 3,230 | ||||||||
Operating income (loss) | 122,610 | 117,081 | 113,481 | ||||||||
Operating Segments | Other Software & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 24,316 | 25,157 | 20,917 | ||||||||
Costs & expenses | 9,043 | 8,890 | 5,958 | ||||||||
Depreciation & amortization | 100 | 97 | 77 | ||||||||
Operating income (loss) | 15,173 | 16,170 | 14,882 | ||||||||
Other Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Costs & expenses | 56,691 | 50,780 | 47,063 | ||||||||
Depreciation & amortization | 6,032 | 4,134 | 3,442 | ||||||||
Operating income (loss) | $ (62,723) | $ (54,914) | $ (50,505) |
REPORTABLE SEGMENTS AND RELAT_5
REPORTABLE SEGMENTS AND RELATED INFORMATION - Summary of Concentration of Risk by Total Consolidated Revenues (Details) - Consolidated revenues | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product concentration risk | Motor Vehicle Driver History Record Retrieval | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 29.00% | 31.00% | 33.00% |
Product concentration risk | Motor Vehicle Registrations | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 14.00% | 14.00% |
Customer concentration risk | Texas NICUSA, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | 20.00% | 20.00% |
Customer concentration risk | LexisNexis Risk Solutions | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 19.00% | 22.00% |
UNAUDITED QUARTERLY OPERATING_3
UNAUDITED QUARTERLY OPERATING RESULTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 78,649 | $ 87,028 | $ 92,498 | $ 86,725 | $ 83,472 | $ 84,533 | $ 85,326 | $ 83,177 | $ 344,900 | $ 336,508 | $ 317,915 |
Operating expenses | |||||||||||
Selling & administrative | 14,848 | 14,690 | 14,003 | 13,150 | 13,898 | 12,091 | 13,131 | 11,660 | 56,691 | 50,780 | 47,063 |
Depreciation & amortization | 2,466 | 2,441 | 2,145 | 2,065 | 1,818 | 1,810 | 1,688 | 1,613 | 9,117 | 6,929 | 6,749 |
Total operating expenses | 66,080 | 67,581 | 70,094 | 66,085 | 66,049 | 64,447 | 65,607 | 62,068 | 269,840 | 258,171 | 240,057 |
Operating income (loss) | 12,569 | 19,447 | 22,404 | 20,640 | 17,423 | 20,086 | 19,719 | 21,109 | 75,060 | 78,337 | 77,858 |
Interest income | 406 | 153 | 57 | 0 | 616 | 0 | 0 | ||||
Income before income taxes | 12,975 | 19,600 | 22,461 | 20,640 | 75,676 | 78,337 | 77,858 | ||||
Income tax provision | 3,127 | 3,698 | 5,450 | 5,132 | 6,583 | 6,066 | 6,950 | 7,124 | 17,407 | 26,723 | 22,025 |
Net income | $ 9,848 | $ 15,902 | $ 17,011 | $ 15,508 | $ 10,840 | $ 14,020 | $ 12,769 | $ 13,985 | $ 58,269 | $ 51,614 | $ 55,833 |
Basic net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
Diluted net income per share (in usd per share) | $ 0.15 | $ 0.24 | $ 0.25 | $ 0.23 | $ 0.16 | $ 0.21 | $ 0.19 | $ 0.21 | $ 0.87 | $ 0.77 | $ 0.84 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 66,569 | 66,562 | 66,541 | 66,323 | 66,270 | 66,267 | 66,248 | 66,046 | 66,499 | 66,209 | 65,913 |
Diluted (in shares) | 66,641 | 66,598 | 66,561 | 66,323 | 66,334 | 66,267 | 66,248 | 66,046 | 66,560 | 66,266 | 65,966 |
Portal | |||||||||||
Revenues | $ 72,354 | $ 80,884 | $ 86,555 | $ 80,791 | $ 78,345 | $ 76,434 | $ 79,374 | $ 77,198 | $ 320,584 | $ 311,351 | $ 296,998 |
Operating expenses | |||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | 46,412 | 48,224 | 51,711 | 48,642 | 48,154 | 47,377 | 49,009 | 47,032 | 194,989 | 191,572 | 180,287 |
Software & services | |||||||||||
Revenues | 6,295 | 6,144 | 5,943 | 5,934 | 5,127 | 8,099 | 5,952 | 5,979 | 24,316 | 25,157 | 20,917 |
Operating expenses | |||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | $ 2,354 | $ 2,226 | $ 2,235 | $ 2,228 | $ 2,179 | $ 3,169 | $ 1,779 | $ 1,763 | $ 9,043 | $ 8,890 | $ 5,958 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | 2 Months Ended |
Feb. 21, 2019USD ($) | |
Subsequent event | |
Subsequent Event [Line Items] | |
Severance costs | $ 2.6 |