Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-26621 | ||
Entity Registrant Name | NIC INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-2077581 | ||
Entity Address, Address Line One | 25501 West Valley Parkway, Suite 300 | ||
Entity Address, City or Town | Olathe | ||
Entity Address, State or Province | KS | ||
Entity Address, Postal Zip Code | 66061 | ||
City Area Code | 877 | ||
Local Phone Number | 234-3468 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | EGOV | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.5 | ||
Entity Common Stock, Shares Outstanding | 67,192,898 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement to be issued in connection with its Annual Meeting of Stockholders to be held in 2021 are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001065332 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 236,513 | $ 214,380 |
Trade accounts receivable, net | 155,484 | 85,399 |
Prepaid expenses & other current assets | 23,638 | 12,944 |
Total current assets | 415,635 | 312,723 |
Property and equipment, net | 9,341 | 10,091 |
Right of use lease assets, net | 10,809 | 10,778 |
Intangible assets, net | 20,737 | 22,398 |
Goodwill | 5,965 | 5,965 |
Other assets | 1,862 | 404 |
Total assets | 464,349 | 362,359 |
Current liabilities: | ||
Accounts payable | 82,364 | 63,685 |
Accrued expenses | 61,064 | 25,940 |
Lease liabilities | 4,078 | 3,776 |
Other current liabilities | 10,491 | 7,191 |
Total current liabilities | 157,997 | 100,592 |
Deferred income taxes, net | 1,097 | 2,463 |
Lease liabilities | 7,172 | 7,373 |
Other long-term liabilities | 4,934 | 6,003 |
Total liabilities | 171,200 | 116,431 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Common stock, 0.0001 par, 200,000 shares authorized, 67,031 and 66,968 shares issued and outstanding | 7 | 7 |
Additional paid-in capital | 129,456 | 123,208 |
Retained earnings | 163,686 | 122,713 |
Total stockholders' equity | 293,149 | 245,928 |
Total liabilities and stockholders' equity | $ 464,349 | $ 362,359 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 67,031,000 | 66,968,000 |
Common stock, shares outstanding (in shares) | 67,031,000 | 66,968,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 460,454 | $ 354,205 | $ 344,900 |
Operating expenses: | |||
Selling & administrative | 34,551 | 35,200 | 32,747 |
Enterprise technology & product support | 29,491 | 26,850 | 23,944 |
Depreciation & amortization | 14,245 | 12,610 | 9,117 |
Total operating expenses | 373,021 | 291,786 | 269,840 |
Total operating expenses | 87,433 | 62,419 | 75,060 |
Other income: | |||
Interest income | 389 | 2,514 | 616 |
Income before income taxes | 87,822 | 64,933 | 75,676 |
Income tax provision | 19,228 | 14,503 | 17,407 |
Net income | $ 68,594 | $ 50,430 | $ 58,269 |
Basic net income per share (in usd per share) | $ 1.01 | $ 0.75 | $ 0.87 |
Diluted net income per share (in usd per share) | $ 1.01 | $ 0.75 | $ 0.87 |
Weighted average shares outstanding: | |||
Basic (in shares) | 67,010 | 66,884 | 66,499 |
Diluted (in shares) | 67,117 | 66,884 | 66,560 |
State enterprise revenues | |||
Revenues | $ 331,720 | $ 290,281 | $ 312,492 |
Operating expenses: | |||
State enterprise cost of revenues, exclusive of depreciation & amortization | 199,901 | 175,490 | 187,321 |
Software & services revenues | |||
Revenues | 128,734 | 63,924 | 32,408 |
Operating expenses: | |||
State enterprise cost of revenues, exclusive of depreciation & amortization | $ 94,833 | $ 41,636 | $ 16,711 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2017 | 66,271 | |||||
Beginning balance at Dec. 31, 2017 | $ 168,242 | $ 208 | $ 7 | $ 111,275 | $ 56,960 | $ 208 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
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 | |||||
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 | |||||
Ending balance at Dec. 31, 2018 | $ 211,689 | $ 7 | 117,763 | 93,919 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Net income | $ 50,430 | 50,430 | ||||
Dividends declared | (21,649) | (21,649) | ||||
Dividend equivalents on unvested performance-based restricted stock awards | 0 | 109 | (109) | |||
Dividend equivalents canceled upon forfeiture of performance-based restricted stock awards | 0 | (122) | 122 | |||
Restricted stock vestings (in shares) | 427 | |||||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (159) | |||||
Shares surrendered and canceled upon vesting of restricted stock to satisfy tax withholdings | (2,754) | (2,754) | ||||
Stock-based compensation | 6,769 | 6,769 | ||||
Shares issuable in lieu of dividend payments on performance-based restricted stock awards (in shares) | 3 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 128 | |||||
Issuance of common stock under employee stock purchase plan | $ 1,443 | 1,443 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 66,968 | 66,968 | ||||
Ending balance at Dec. 31, 2019 | $ 245,928 | $ 339 | $ 7 | 123,208 | 122,713 | $ 339 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 68,594 | 68,594 | ||||
Dividends declared | (24,398) | (24,398) | ||||
Dividend equivalents on unvested performance-based restricted stock awards | 0 | 141 | (141) | |||
Dividend equivalents canceled upon forfeiture of performance-based restricted stock awards | 0 | (84) | 84 | |||
Restricted stock vestings (in shares) | 299 | |||||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (99) | |||||
Shares surrendered and canceled upon vesting of restricted stock to satisfy tax withholdings | (2,037) | (2,037) | ||||
Repurchase of shares (in shares) | (241) | |||||
Repurchase of shares | (3,944) | (439) | (3,505) | |||
Stock-based compensation | 7,158 | 7,158 | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 104 | |||||
Issuance of common stock under employee stock purchase plan | $ 1,509 | 1,509 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 67,031 | 67,031 | ||||
Ending balance at Dec. 31, 2020 | $ 293,149 | $ 7 | $ 129,456 | $ 163,686 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 68,594 | $ 50,430 | $ 58,269 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation & amortization | 14,245 | 12,610 | 9,117 |
Stock-based compensation expense | 7,158 | 6,769 | 6,338 |
Deferred income taxes | (1,483) | 1,682 | 1,448 |
Provision for losses on accounts receivable | 1,505 | 782 | 852 |
Loss on disposal of property and equipment | 0 | 89 | 88 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (71,134) | (4,826) | 22,182 |
Prepaid expenses & other current assets | (10,694) | 789 | (887) |
Other assets | 2,940 | 4,430 | 1,810 |
Accounts payable | 18,679 | 3,593 | (28,828) |
Accrued expenses | 35,124 | 1,788 | (2,351) |
Other current liabilities | 2,084 | 1,132 | 1,262 |
Other long-term liabilities | (4,181) | (7,218) | 536 |
Net cash provided by operating activities | 62,837 | 72,050 | 69,836 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,354) | (4,253) | (5,410) |
Capitalized software development costs | (8,481) | (8,671) | (8,580) |
Business combination | 0 | (10,000) | 0 |
Asset acquisition | 0 | (3,486) | (3,555) |
Net cash used in investing activities | (11,835) | (26,410) | (17,545) |
Cash flows from financing activities: | |||
Cash dividends on common stock | (24,398) | (21,649) | (21,521) |
Proceeds from employee common stock purchases | 1,509 | 1,443 | 1,382 |
Shares surrendered upon vesting of restricted stock to satisfy tax withholdings | (2,036) | (2,754) | (1,229) |
Repurchase of shares | (3,944) | 0 | 0 |
Net cash used in financing activities | (28,869) | (22,960) | (21,368) |
Net increase in cash | 22,133 | 22,680 | 30,923 |
Cash, beginning of period | 214,380 | 191,700 | 160,777 |
Cash, end of period | 236,513 | 214,380 | 191,700 |
Non-cash activities: | |||
Contingent consideration - business combination | 0 | 960 | 0 |
Cash payments: | |||
Income taxes paid, net of refunds | $ 19,649 | $ 16,035 | $ 13,707 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
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 and payment solutions 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 state enterprise businesses and its software & services businesses. In the Company's state enterprise businesses, it generally provides services to design, build, and operate digital government services on an enterprise-wide basis on behalf of state and local governments desiring to provide access to government information and to complete secure government-based transactions through multiple online channels. These digital government services consist of websites and applications the Company has built that allow end-user consumers, such as businesses and citizens, to access government information online, complete transactions, such as applying for a permit, retrieving government records, filing a government-mandated form or report and making digital payments. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. The Company is typically responsible for funding the up-front investments and ongoing operations and maintenance costs of the digital government services. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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) state enterprise and (2) software & services. The state enterprise 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 those services provided on an enterprise-wide basis, to federal, state and local governments. The primary categories of operating expenses include: state enterprise cost of revenues, software & services cost of revenues, selling & administrative, enterprise technology & product support and depreciation & amortization. State enterprise cost of revenues consists of all direct costs associated with operating digital government services 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. Software & services cost of revenues consists of all direct project costs to provide services such as employee compensation and benefits (including stock-based compensation), payment processing fees required to process credit/debit card and automated clearinghouse transactions, 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 market development and sales, marketing, human resource management, corporate communications and public relations, administration, legal, finance and accounting, internal audit and all non-customer service-related costs. Enterprise technology & product support consist primarily of corporate-level expenses relating to information technology, product and security teams that support the centrally hosted infrastructure and platforms and SaaS payment processing and vertical platform solutions. Certain amounts in the consolidated statements of income for December 31, 2019 and 2018 were reclassified to conform to the current year presentation. In 2020, the Company began classifying the current Texas payment processing contract in the software & services category. The Company reclassified $30.4 million and $8.1 million of revenues and $28.2 million and $7.7 million of cost of revenues from this contract from the state enterprise category to the software & services category for the years ended December 31, 2019 and 2018, respectively. The reclassification had no impact on net income or cash flows for the years ended December 31, 2019 and 2018. 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. In 2019, the Company had only one reportable segment, State Enterprise. During the first quarter of 2020, the Company made a change from one to two reportable segments, State Enterprise and Payments, which was based on quantitative and qualitative considerations, and was a result of recent changes in the Company's reporting structure to reclassify the Texas payment processing contract from the state enterprise category to the software & services category. In August 2020, the Company launched TourHealth services for rapid and secure COVID-19 testing, which during the fourth quarter of 2020, based on quantitative considerations, was included as a third reportable segment. Currently, the Company operates with three reportable segments: State Enterprise, Payments and TourHealth. All prior year amounts have been restated to conform to the current year presentation. See Note 13, Reportable Segments and Related Information, for additional information regarding the Company's 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, and its relationship with, and the expected future 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, 2020 and 2019 was approximately $2.2 million and $1.2 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 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 acquired software. 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 estimated economic life for finite-lived intangible assets is typically 3 to 5 years from the date the software is placed in production. Intangible assets are recorded at cost, less accumulated amortization and are evaluated for recoverability of possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts of the asset group to the future undiscounted cash flows the assets are expected to generate. If such review indicated that the carrying amount of an intangible asset group was not recoverable, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset group exceeds its estimated fair value. The Company has not recorded any impairment losses on intangible assets during the periods presented. The majority of the costs incurred by the Company to obtain a contract, which consist primarily 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 state enterprise cost of 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. Goodwill and intangible assets In accordance with ASC 350, Intangibles - Goodwill and Other , the Company evaluates the carrying value of goodwill, at least annually or more frequently whenever events or changes in circumstances indicate that the fair value of the reporting unit may be less than its carrying amount. Impairment tests are performed annually during the fourth quarter and are performed at the reporting unit level. As of December 31, 2020, the Company did not identify any impairment of goodwill. 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, subcontractor costs, employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions) and third-party professional service fees. Revenue recognition The Company accounts for revenue in accordance with ASC 606 , Revenue from Contracts with Customers . 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) development services and (iii) fixed-fee services. The following table summarizes, by reportable segment, the principal activities from which the Company generates revenue (in thousands): Reportable Segments State Enterprise Payments TourHealth All Other Consolidated December 31, 2020 IGS $ 209,903 $ — $ — $ — $ 209,903 DHR 85,337 — — — 85,337 Other — 41,092 22,415 20,799 84,306 Total transaction-based 295,240 41,092 22,415 20,799 379,546 Development services 31,530 — — — 31,530 Fixed-fee services 4,950 — 39,219 5,209 49,378 Total revenues $ 331,720 $ 41,092 $ 61,634 $ 26,008 $ 460,454 December 31, 2019 IGS $ 183,987 $ — $ — $ — $ 183,987 DHR 91,059 — — — 91,059 Other — 37,976 — 22,019 59,995 Total transaction-based 275,046 37,976 — 22,019 335,041 Development services 10,285 — — — 10,285 Fixed-fee services 4,950 — — 3,929 8,879 Total revenues $ 290,281 $ 37,976 $ — $ 25,948 $ 354,205 December 31, 2018 IGS $ 195,155 $ — $ — $ — $ 195,155 DHR 100,241 — — — 100,241 Other — 10,936 — 19,813 30,749 Total transaction-based 295,396 10,936 — 19,813 326,145 Development services 12,146 — — — 12,146 Fixed-fee services 4,950 — — 1,659 6,609 Total revenues $ 312,492 $ 10,936 $ — $ 21,472 $ 344,900 Transaction-based Revenues The Company recognizes revenue from providing outsourced digital services to its government partners primarily utilizing the Company's internally developed proprietary applications. Under these contracts, the Company agrees to provide continuous access to digital government services that allow end-user 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. The processing of transactions is highly automated based on contractual terms with the Company's government partners. 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 digital solutions over the contractual term and by processing transactions as they are initiated by end-user consumers. The performance obligation is satisfied when the Company provides the access and it is used by the end-user 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 end-user 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 equal to or greater than the fair value of the consideration 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. Development Services Revenues The Company earns development services revenues primarily under contracts to provide software development and other time and materials services to its 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 development contracts 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 development 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 development contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of December 31, 2020, the total transaction price allocated to unsatisfied performance obligations was approximately $7.2 million. Fixed-fee Services Revenues Fixed-fee services revenues primarily consist of revenues from providing recurring fixed-fee services for the Company’s government partner in Indiana and other contracts for SaaS subscription-based services in the Company's software & services businesses. The Indiana 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, 2020, the Company’s Indiana state enterprise contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. The SaaS subscription-based service contracts in the Company's software & services businesses are a fixed-fee single performance obligation to provide government partners continuous access to digital services. The Company satisfies its performance obligation by providing access to digital services over the contractual term. The Company recognizes revenue for the fixed subscription fees ratably over the non-cancelable term of the contract, commencing on the date the customer has access to the solution. As of December 31, 2020, the unsatisfied performance obligations related to these subscription obligations was $17.3 million, which will be recognized over the term of such contracts, generally 1 - 5 years. TourHealth Services Revenues In August 2020, the Company began providing a rapid and secure COVID-19 testing solution referred to as TourHealth, featuring digital engagement, assessment and scheduling, as well as in-person clinical testing and logistics. TourHealth service contracts are either a transaction-based (per test) or fixed-fee single performance obligation to provide continuous access to COVID-19 testing services over a specified period of time. The Company satisfies its performance obligation by providing services to the government partners over time. For TourHealth transaction-based fee contracts, the fees earned by the Company are typically usage-based and calculated based on the number of tests processed each day at the contractual fee earned by the Company for each test. These usage-based fees are deemed to be variable consideration that meets the practical expedient within ASC 606, which are fully constrained and recognized once the uncertainties associated with the constraint are resolved, which is when the related testing service occurs each day. For TourHealth fixed-fee contracts, consideration consists of a fee that is recognized monthly as the performance obligation is satisfied. As of December 31, 2020, the unsatisfied performance obligations related to these fixed-fee contracts was $2.0 million which is expected to be recognized during the first quarter of 2021. Unearned and Unbilled 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, 2020 and 2019 were approximately $6.7 million and $3.8 million, respectively. The change in the deferred revenue balance for the year primarily reflects $31.4 million of cash payments received or due in advance of satisfying performance obligations, offset by $28.5 million of revenues recognized that were previously included in deferred revenue. Unbilled revenues is recorded when revenue is recognized in advance of the amounts invoiced to the customer and is recorded in other current assets in the consolidated balance sheets. Unbilled revenues at December 31, 2020 and 2019 were approximately $13.2 million and $3.4 million, respectively. The change in the unbilled revenue balance for the year primarily reflects additions to the unbilled revenue balance of $41.1 million and $31.3 million of amounts billed during the period. Contract Costs Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. For the years ended December 31, 2020 and 2019, the incremental costs incurred to obtain contracts with customers were insignificant. Costs incurred to fulfill customer contracts, are deferred and recorded within other current assets and other assets when such costs relate directly to a contract, generate or enhance resources of the Company that will be used in satisfying performance obligations in the future and the Company expects to recover those costs. Contract fulfillment costs may include software implementation costs and setup costs for certain SaaS solutions. These costs are recognized as assets and amortized over the expected term of the contract to which the implementation relates, which is the period over which services are expected to be provided to the customer. For the years ended December 31, 2020 and 2019, the costs incurred to fulfill contracts with customers were insignificant. Leases All of the Company's lease arrangements are considered operating leases and are included in right of use lease assets and lease liabilities on the consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheet and are expensed on a straight-line basis over the term of the lease. On the commencement date of a lease, the Company recognizes a lease liability and corresponding right of use lease asset based on the present value of lease payments over the lease term. Lease agreements generally do not provide an implicit rate and therefore the Company's incremental borrowing rate at the commencement date is used to determine the present value of lease payments. Accretion of the discount on the lease liability is calculated under the effective interest method and included in operating lease cost. The right of use asset also includes any initial direct costs and prepaid lease payments and excludes any lease incentives received by the lessor. The right of use asset is amortized over the lease term and is included in operating lease cost. The result is a single operating lease cost recognized on a straight-line basis over the term of the lease. Certain of the Company's leases have both lease and non-lease components. The Company has elected the practical expedient to account for these components as a single lease component for all leases. Stock-based compensation The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the fair value of the award and recognizes 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 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. Earnings per share The Company applies the two-class method of computing earnings per share as the Company's service-based restricted stock awards are entitled to non-forfeitable dividends and are therefore considered to be 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. 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. Business combinations The Company accounts for the acquisition of a business in accordance with ASC 805, Business Combinations , which requires the identifiable assets acquired, the liabilities assumed and any noncontrolling interests in an acquired business to be recorded at their fair values as of the date of acquisition. The excess of the fair value of purchase consideration over the fair values of identifiable assets and liabilities is recorded as goodwill. Fair value measurements require extensive use of estimates and assumptions, particularly with respect to intangible assets, which are based on all available information at the date of acquisition, including estimates of future cash flows to be generated by the acquired assets, useful lives and discount rates. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired and related amortization expense. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. 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, 2020, there were no customers that accounted for 10% or more of the Company's total accounts receivable. At December 31, 2019, LexisNexis Risk Solutions accounted for approximately 14% 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 FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in U.S. 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, companies 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. On January 1, 2020, the Company adopted the standard and all the related amendments, using a modified retrospective |
OUTSOURCED GOVERNMENT CONTRACTS
OUTSOURCED GOVERNMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2020 | |
Contractors [Abstract] | |
OUTSOURCED GOVERNMENT CONTRACTS | OUTSOURCED GOVERNMENT CONTRACTS State enterprise contracts The Company’s state enterprise 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 to design, build, and operate digital government services on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to digitally complete government-based transactions and payments. NIC typically markets the services and solicits end-user consumers to complete government-based transactions and to enter into subscriber contracts permitting the user to access digital applications 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 digital 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 the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term or upon termination for cause, the government partner typically receives a perpetual, royalty-free license to use the applications built by the Company only in its own state. However, certain enterprise applications, proprietary customer management, billing, payment processing and other software applications that the Company has developed and standardized centrally as platforms are provided to 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 applications 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. 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. Software & services contract The Company's software & services contracts generally consist of SaaS solutions relating to payment processing, healthcare and licensing, software development, COVID-19 testing solutions and other digital government services, other than those provided on an enterprise-wide basis, to federal, state and local governments. The Company has contracts with certain Federal agencies, including a contract with the FMCSA to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide using a transaction-based business model. The Company also has contracts with certain government and government-related entities for TourHealth rapid and secure COVID-19 testing services which launched in August 2020. Termination without cause contracts There are 14 state enterprise contracts and three software & services contracts under which the Company provides digital government services that can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 48% of the Company’s total consolidated revenues for the year ended December 31, 2020. 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. Expiring contracts There are currently 11 state enterprise contracts, as well as the Company’s contract with the FMCSA, that have expiration dates within the 12-month period following December 31, 2020. Collectively, revenues generated from these contracts represented approximately 28% of the Company’s total consolidated revenues for the year ended December 31, 2020. Although five of these contracts have renewal provisions, any renewal is at the option of the Company’s government partners. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the applications in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. In addition, TourHealth's contracts for COVID-19 testing services currently only extend into the first quarter of 2021. The contract under which the Company managed enterprise-wide digital government services for the state of Texas expired on August 31, 2018. The contract accounted for approximately 14% of the Company's total consolidated revenues for the year ended December 31, 2018. For the year ended December 31, 2018, revenues from the contract were approximately $49.0 million. 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 state enterprise cost of revenues in the consolidated statement of income in the state enterprise segment, were approximately $1.0 million in 2018. Contract developments During the fourth quarter of 2020, the Company was awarded a five-year contract with the state of Florida to provide payment processing services, which includes an option for the state to extend the contract for one five-year period. Under this transaction-funded contract, the Company has the ability to provide payment processing services to all state agencies and local governments in the state of Florida. During the fourth quarter of 2020, the Company was awarded a five-year contract with the state of Iowa to provide enterprise-wide digital government services, which includes an option for the state to extend the contract up to an additional five years. As previously discussed, during the second half 2020, the Company was awarded contracts with the state of Florida, South Carolina and Kansas, the Alabama Department of Corrections and the University of Mississippi, to provide TourHealth rapid and secure COVID-19 testing services. Performance bond commitments At December 31, 2020, the Company was bound by performance bond commitments totaling approximately $38.2 million on certain government contracts and other business relationships. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company calculates earnings per share under the two-class method, as unvested service-based restricted stock awards contain non-forfeitable rights to dividends, and thus are considered securities that participate in the earnings of the Company. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): December 31, 2020 2019 2018 Numerator: Net income $ 68,594 $ 50,430 $ 58,269 Less: Income allocated to participating securities (736) (546) (629) Net income available to common stockholders $ 67,858 $ 49,884 $ 57,640 Denominator: Weighted average shares - basic 67,010 66,884 66,499 Performance-based restricted stock awards 107 — 61 Weighted average shares - diluted 67,117 66,884 66,560 Basic net income per share: $ 1.01 $ 0.75 $ 0.87 Diluted net income per share: $ 1.01 $ 0.75 $ 0.87 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations And Asset Acquisitions [Abstract] | |
ACQUISITIONS | ACQUISITIONS Complia, LLC On May 1, 2019, the Company completed the stock acquisition of Complia, LLC ("Complia"), a regulatory licensing platform business, which the Company rebranded as NIC Licensing Solutions. The Company acquired all outstanding equity of Complia for initial consideration of $10.0 million in cash. The sellers are eligible to earn additional cash consideration up to $5.0 million, on new contracts that utilize the licensing platform through April 2022. The Company has recorded a liability of $1.0 million for the fair value of this contingent consideration at the date of acquisition as part of the consideration transferred. The fair value of the contingent consideration was determined using a scenario-based model, which includes inputs such as projected earnings-based measures, probability of achievement and a discount rate, that are not observable in the market. At each reporting period, the contingent consideration liability is recorded at fair value with any changes reflected in earnings. The total purchase consideration for this acquisition was $11.0 million. This transaction was accounted for as a business combination, and the purchase price was allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the date of acquisition. The consolidated financial statements include the results of Complia's operations from the date of acquisition. Pro-forma results of operations, assuming this acquisition was made at the beginning of the earliest period presented, have not been presented because the effect of this acquisition was not material to the Company's results. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands). As of May 1, 2019 Current assets $ 451 Software 4,200 Customer relationships 425 Non-compete agreements 250 Trade name 35 Goodwill 5,965 Other assets 11 Total assets acquired 11,337 Accrued expenses and other liabilities (377) Net assets acquired $ 10,960 The goodwill was included within the software & services category, which is further described in Note 13 , and represents future economic benefits that the Company expects to achieve as a result of the acquisition. The acquired capitalized software has an estimated amortization period of five years, the acquired customer relationships have an estimated amortization period of seven years and the non-compete and trade names each have an estimated amortization period of three years. The goodwill and intangible assets associated with this acquisition are deductible for tax purposes. Leap Orbit LLC In 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 initial cash consideration of approximately $3.6 million and potential additional consideration of approximately $3.5 million if certain conditions under the agreement were met. The transaction was accounted for as an asset acquisition, as substantially all the value related to the prescription drug monitoring software technology acquired. The Company paid the additional consideration of $3.5 million in 2019, which was included in the cost of the acquired assets in the consolidated balance sheet. The acquired software has an estimated amortization period of three years. The Company rebranded its prescription drug monitoring platform as RxGov. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Software development cost $ 39,342 $ (23,417) $ 15,925 $ 30,861 $ (16,951) $ 13,910 Acquired software 11,241 (6,880) 4,361 11,241 (3,359) 7,882 Customer relationships 425 (101) 324 425 (40) 385 Non-compete agreements 250 (139) 111 250 (56) 194 Trade name 35 (19) 16 35 (8) 27 Total $ 51,293 $ (30,556) $ 20,737 $ 42,812 $ (20,414) $ 22,398 During 2019, the Company recorded approximately $8.4 million of intangible assets in connection with the Complia and Leap Orbit acquisitions, as further discussed in Note 5, Acquisitions. Amortization expense for intangible assets with finite lives was $10.1 million, $8.3 million and $3.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total estimated intangible asset amortization expense in future years is as follows (in thousands): Fiscal Year 2021 $ 10,293 2022 6,168 2023 3,854 2024 341 2025 61 Thereafter 20 $ 20,737 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
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): 2020 2019 Equipment $ 23,808 $ 24,936 Purchased software 8,566 8,769 Furniture and fixtures 6,016 5,922 Leasehold improvements 2,071 2,181 40,461 41,808 Less accumulated depreciation (31,120) (31,717) Property and equipment, net $ 9,341 $ 10,091 Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $4.1 million, $4.3 million and $5.4 million, respectively. |
DEBT OBLIGATIONS AND COLLATERAL
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS The Company has a revolving credit facility with Bank of America, N.A. Under the Amended and Restated Credit Agreement ("Credit Agreement"), the credit facility provides $10 million of unsecured financings available to finance working capital, issue letters of credit and finance general corporate purposes. 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. The Company can obtain letters of credit in an aggregate amount of $5 million, which reduces the maximum amount available for borrowing under the Credit Agreement. On May 1, 2019, the Company entered into Amendment No. 4 to Amended and Restated Credit Agreement (the “Amendment’), which amended the Credit Agreement, dated as of August 6, 2014, as previously amended, between the Company and the bank. The Amendment extended the maturity date of the Credit Agreement to May 1, 2021, and increased the purchase price of a permitted acquisition, as well as the aggregate purchase price of all such permitted acquisitions during the term of the Credit Agreement. Additionally, the Amendment removed the previous two-tier structure on interest rates and provided that the interest rate on any amounts borrowed by the Company under the Credit Agreement will be at (i) an annual rate adjusted daily and benchmarked to one-month LIBOR, plus a margin of 1.15% per annum, or (ii) an annual rate benchmarked to LIBOR with a term equivalent to such borrowing, plus a margin of 1.15% per annum. 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, 2020. The Company has issued a letter of credit as collateral for performance on one of its state enterprise contracts. 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, 2020. The Company was not required to cash collateralize these letters of credit at December 31, 2020. 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, 2020 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. At December 31, 2020, the Company has a $1.0 million line of credit with a bank in conjunction with a corporate credit card agreement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company leases office space and certain equipment under noncancelable operating leases. Leases have terms which range from one year to nine years, some of which include options to renew the lease. The exercise of a lease renewal option is at the Company’s sole discretion and is included in the lease term when it is reasonably certain the Company will exercise the option based on economic factors. The weighted average remaining lease term for operating leases as of December 31, 2020 was 3.2 years. Operating lease costs for the years ended December 31, 2020, 2019 and 2018 was approximately $6.0 million, $5.8 million and $5.3 million, respectively. Operating lease costs include short-term and variable lease costs, which are not significant. The aggregate future lease payments for operating leases as of December 31, 2020 are as follows (in thousands): 2020 Fiscal Year 2021 $ 4,692 2022 3,638 2023 2,073 2024 1,345 2025 689 Total minimum lease payments 12,437 Less: interest (1,187) Total lease liabilities $ 11,250 Other information related to operating leases is as follows (in thousands): 2020 Weighted-average discount rate 2.4 % Supplement cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 4,328 Right of use assets obtained in exchange for new lease liabilities $ 4,429 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, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividend policy 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. For each dividend paid, a dividend equivalent is paid simultaneously on unvested shares of service-based restricted stock. All dividends on unvested shares of service-based restricted stock have been paid out of the Company's available cash. In addition, holders of performance-based restricted stock accrue dividend equivalents for each 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. Dividends The Company's Board of Directors declared and paid the following dividends during the years ended December 31, 2020 and 2019 (payment amount in millions): Declaration Date Dividend per Share Record Date Payment Date Amount October 26, 2020 $0.09 December 4, 2020 December 18, 2020 $6.1 July 27, 2020 0.09 September 8, 2020 September 22, 2020 6.1 April 23, 2020 0.09 June 11, 2020 June 25, 2020 6.1 January 27, 2020 0.09 March 4, 2020 March 18, 2020 6.1 October 28, 2019 0.08 December 4, 2019 December 18, 2019 5.4 July 29, 2019 0.08 September 6, 2019 September 20, 2019 5.4 May 7, 2019 0.08 June 11, 2019 June 25, 2019 5.4 January 28, 2019 0.08 March 5, 2019 March 19, 2019 5.4 On February 1, 2021, the Company's Board of Directors declared a regular quarterly cash dividend of $0.09 per share, payable to stockholders of record as of March 3, 2021. The dividend, which is expected to total approximately $6.1 million, will be paid on March 17, 2021. Share Repurchase In March 2018, the Company's Board of Directors authorized a stock repurchase program allowing the Company to repurchase up to $25 million of common stock. During March 2020, the Company repurchased and retired 241,180 shares at a weighted average purchase price of $16.33 for a total value of $3.9 million under the repurchase program. The Company has made no other repurchases under its share repurchase program. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2020 2019 2018 Current income taxes: Federal $ 17,150 $ 10,343 $ 13,704 State 3,561 2,478 2,255 Total 20,711 12,821 15,959 Deferred income taxes: Federal (946) 1,182 1,466 State (537) 500 (18) Total (1,483) 1,682 1,448 Total income tax provision $ 19,228 $ 14,503 $ 17,407 The tax effects of the temporary differences that gave rise to significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in thousands): 2020 2019 Deferred tax assets: Stock-based compensation $ 1,330 $ 983 Federal benefit of state uncertain tax positions 563 746 Accrued vacation 618 521 Deferred rent 112 95 Deferred payroll tax 947 — State net operating loss carryforwards 53 228 Allowance for doubtful accounts 552 311 Right of use lease liability 2,851 2,840 Other 873 465 Gross deferred tax assets 7,899 6,189 Less: Valuation allowance (4) (335) Total deferred tax assets 7,895 5,854 Deferred tax liabilities: Property and equipment (1,830) (2,027) Capitalized software development costs (4,423) (3,544) Right of use lease asset (2,739) (2,746) Total deferred tax liabilities (8,992) (8,317) Net deferred tax liability $ (1,097) $ (2,463) 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. In assessing the realizability of deferred tax assets, management determines if it is probable the Company will have sufficient taxable income in certain state jurisdictions to fully utilize available tax credits and other components. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. In 2020, the Company identified certain state net operating loss (“NOL”) carryforwards that it had previously identified as unable to use and concluded that it would be able to realize the full amount of these NOL carryforwards. As a result, the Company reduced its deferred tax asset valuation allowance by $0.3 million. 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, 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 3.5 % 5.0 % 2.3 % Federal and state tax credits (2.1) % (0.8) % (2.3) % Tax deficit (benefit) from restricted stock vestings (0.3) % (0.1) % 0.3 % Uncertain tax positions (release) (0.6) % (5.2) % 0.8 % Nondeductible expenses 0.7 % 2.2 % 0.8 % Other, net (0.3) % 0.2 % 0.1 % Effective federal and state income tax rate 21.9 % 22.3 % 23.0 % The Company’s effective tax rate in 2020 was higher than the statutory federal income tax rate due to the effect of state income taxes and nondeductible expenses, partially offset by favorable benefits related to return to the federal research and development credit and other tax adjustments recognized upon filing the Company's 2019 tax return. The Company’s effective tax rate in 2019 was higher than the statutory federal income tax rate due to the effect of state income taxes and nondeductible expenses, partially offset by the favorable impact of the release of reserves for unrecognized income tax benefits resulting from the expiration of the statutes of limitations for certain tax years and from the completion of an IRS tax examination of the Company’s 2016 consolidated U.S. federal income tax return, which resulted in no changes to the Company’s previously filed return. The effective tax rate was also impacted by approximately $2.6 million of executive severance costs, a significant portion of which was not deductible for income tax purposes. The Company’s effective tax rate in 2018 was higher than the statutory federal income tax rate due to the effect of state income taxes, uncertain tax positions, and nondeductible expenses, partially offset by favorable benefits related to the federal research and development credit. The Company recognized $0.4 million in excess tax benefits and $0.1 million and $0.3 million in tax deficits from restricted stock vestings within income tax expense for the years ended December 31, 2020, 2019 and 2018, respectively. 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, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Balance at January 1 $ 5,048 $ 8,651 $ 8,020 Additions for tax positions of prior years 247 208 459 Additions for tax positions of current years 368 393 1,248 Expiration of the statute of limitations (1,202) (3,182) (1,024) Reductions for tax positions of prior years (103) (217) (52) Settlements — (805) — Balance at December 31 $ 4,358 $ 5,048 $ 8,651 At December 31, 2020 and 2019, there were approximately $3.8 million and $4.3 million, respectively, 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 Company remains subject to U.S. federal examination for the tax years ended on or after December 31, 2017. State income tax returns are generally subject to examination for a period of three 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, 2020, 2019 and 2018. |
STOCK-BASED COMPENSATION AND EM
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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, 2020 2019 2018 State enterprise cost of revenues, exclusive of depreciation & amortization $ 1,585 $ 1,499 $ 1,516 Software & services cost of revenues, exclusive of depreciation & amortization 162 101 151 Selling & administrative 4,599 4,495 3,994 Enterprise technology & product support 812 674 677 Stock-based compensation expense before income taxes $ 7,158 $ 6,769 $ 6,338 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 2020, 2019, or 2018 and has no stock options currently outstanding. 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. At December 31, 2020, a total of 2,776,440 shares were available for future grants under the NIC Plan. Restricted stock During 2020, 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 297,410 shares with a grant-date fair value totaling approximately $6.3 million. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. During 2020, certain management-level employees were granted service-based restricted stock awards totaling 9,256 shares with a grant-date fair value totaling approximately $0.2 million, which vest over two years in 50% installments. In addition, non-employee directors of the Company were granted service-based restricted stock awards totaling 34,607 shares with a grant-date fair value totaling approximately $0.7 million. Such restricted stock awards vest one year from the date of grant. During the first quarter of 2020, 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 137,052 shares with a grant-date fair value totaling approximately $2.8 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, 2022. 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); and • Total consolidated revenue growth (three-year compound annual growth rate). 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 vest 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, 2020, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 22, 2018 ended. Based on the Company’s actual financial results from 2018 through 2020, 33,715 of the shares and 1,905 dividend shares were earned. The remaining 106,379 shares subject to the awards will be forfeited in the first quarter of 2021. At December 31, 2019, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 22, 2017 ended. Based on the Company’s actual financial results from 2017 through 2019, no shares or dividend equivalent shares were earned, and the 87,241 shares subject to the awards were forfeited. 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 were forfeited. During 2019, the Company's former Chief Operating Officer departed the Company. Pursuant to the terms of his employment agreement, the Company provided severance and other related benefits. The Company incurred a total one-time cost of $2.6 million, which consisted of a one-time cash payment of $1.5 million and $1.1 million of stock-based compensation expense associated with the accelerated vesting of certain restricted stock awards. Included in stock-based compensation expense was the acceleration of 44,507 service-based restricted stock awards and 37,463 performance-based restricted stock awards. A summary of service-based restricted stock activity for the year ended December 31, 2020 is presented below: Service-based Restricted Weighted Outstanding at January 1, 2020 712,162 $ 16.81 Granted 341,273 $ 21.12 Vested (298,479) $ 17.20 Canceled (23,830) $ 17.53 Outstanding at December 31, 2020 731,126 $ 18.64 Expected to vest at December 31, 2020 731,126 $ 18.64 The fair value of service-based restricted stock vested during the years ended December 31, 2020, 2019 and 2018 was approximately $5.1 million, $5.5 million and $5.1 million, respectively. The weighted average grant date fair value per share of service-based restricted stock granted during the years ended December 31, 2020, 2019 and 2018 was $21.12, $16.96 and $14.15, respectively. A summary of performance-based restricted stock activity for the year ended December 31, 2020 is presented below: Performance- Weighted Outstanding at January 1, 2020 338,470 $ 17.01 Granted 137,052 $ 20.55 Vested — $ 22.00 Canceled (87,241) $ 22.00 Outstanding at December 31, 2020 388,281 $ 17.14 Expected to vest at December 31, 2020 149,801 $ 18.48 During the years with performance periods ended December 31, 2020 and 2018, no shares of performance-based restricted stock awards vested. The fair value of performance-based restricted stock vested with the performance period ended December 31, 2019 was approximately $1.8 million. The weighted average grant date fair value per share of performance-based restricted stock granted during the years ended December 31, 2020, 2019 and 2018 was $20.55, $17.27 and $13.70, respectively. At December 31, 2020, the total intrinsic value of unvested restricted stock awards expected to vest was approximately $22.8 million. At December 31, 2020, the Company had approximately $10.7 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, 2020. 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. At December 31, 2020, a total of 787,353 shares were available for future grants under the ESPP. The current offering period under this plan commenced on April 1, 2020. The closing fair market value of NIC common stock on the first day of the current offering period was $21.27 per share. In the offering period commencing on April 1, 2019 and ending on March 31, 2020, 103,628 shares were purchased at a price of $14.56 per share, resulting in total cash proceeds to the Company of approximately $1.5 million. In the offering period commencing on April 1, 2018 and ending on March 31, 2019, 127,600 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, 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. 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. Offering Ending March 31, 2021 Offering Ending March 31, 2020 Offering Ending March 31, 2019 Risk-free interest rate 0.16 % 2.41 % 2.08 % Expected dividend yield 1.90 % 1.93 % 2.06 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 41.09 % 29.94 % 35.51 % Weighted average fair value of ESPP rights $ 6.37 $ 4.49 $ 3.75 The Black-Scholes option-pricing model was not developed for use in valuing 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 $3.3 million, $2.9 million and $2.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
REPORTABLE SEGMENTS AND RELATED
REPORTABLE SEGMENTS AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS AND RELATED INFORMATION | REPORTABLE SEGMENTS AND RELATED INFORMATION The Company currently operates in three reportable segments: State Enterprise, Payments and TourHealth. The State Enterprise reportable segment generally includes the Company’s subsidiaries operating digital government services on an enterprise-wide basis for state and local governments. The Payments reportable segment includes the Company's subsidiaries in the software & services category that provide certain payment processing-related, transaction-based services mainly to state and local government agencies in states where the Company does not maintain an enterprise-wide contract. The TourHealth reportable segment includes the Company's TourHealth rapid and secure COVID-19 testing solution, which commenced in August 2020. The All Other category primarily includes the Company's subsidiaries in the software & services category that provide software development and digital government services, other than those provided on an enterprise-wide basis, to federal agencies, including the Company's contract with the FMCSA to operate the Federal PSP and the Company's subcontract for the Recreation.gov outdoor recreation service, as well as to other state and local governments and government-related entities, including the Company's RxGov prescription drug monitoring business and NIC Licensing Solutions regulatory licensing business. Each of the Company’s businesses within the All Other category is an operating segment and have been grouped together to form the All Other category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. These services are not directly identifiable with the Company’s reportable operating segments. In addition, the Company accounts for non-operating activity and the costs of providing corporate and other administrative services in the Other Reconciling Items category. 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 segments for the years ended December 31 (in thousands): State Enterprise Payments TourHealth All Other Other Consolidated 2020 Revenues $ 331,720 $ 41,092 $ 61,634 $ 26,008 $ — $ 460,454 Costs & expenses 199,901 32,314 51,606 10,913 64,042 358,776 Depreciation & 2,682 6 — 4,516 7,041 14,245 Operating income (loss) $ 129,137 $ 8,772 $ 10,028 $ 10,579 $ (71,083) $ 87,433 2019 Revenues $ 290,281 $ 37,976 $ — $ 25,948 $ — $ 354,205 Costs & expenses 175,490 30,922 — 10,714 62,050 279,176 Depreciation & amortization 2,723 3 — 1,619 8,265 12,610 Operating income (loss) $ 112,068 $ 7,051 $ — $ 13,615 $ (70,315) $ 62,419 2018 Revenues $ 312,492 $ 10,936 $ — $ 21,472 $ — $ 344,900 Costs & expenses 187,321 8,536 — 8,175 56,691 260,723 Depreciation & amortization 2,985 — — 100 6,032 9,117 Operating income (loss) $ 122,186 $ 2,400 $ — $ 13,197 $ (62,723) $ 75,060 The following table identifies each type of service, end-user consumer and state government that accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31: Percentage of Total Revenues 2020 2019 2018 Type of Service Motor Vehicle Driver History Record Retrieval 19 % 26 % 29 % Motor Vehicle Registrations 11 % 11 % 14 % TourHealth COVID-19 Services 13 % N/A N/A Consumer LexisNexis Risk Solutions 11 % 15 % 19 % (provides motor vehicle driver history records to the insurance industry) State Partner Colorado N/A 10 % N/A Texas N/A N/A 17 % (2018 consists of the legacy and payment processing contracts) |
UNAUDITED QUARTERLY OPERATING R
UNAUDITED QUARTERLY OPERATING RESULTS | 12 Months Ended |
Dec. 31, 2020 | |
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 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, 2020 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: State enterprise revenues $ 74,411 $ 77,804 $ 91,475 $ 88,030 Software & services revenues 16,708 15,785 43,115 53,126 Total revenues 91,119 93,589 134,590 141,156 Operating expenses: State enterprise cost of revenues, exclusive of depreciation & amortization 46,271 45,876 53,807 53,947 Software & services cost of revenues, exclusive of depreciation & amortization 10,724 10,344 31,290 42,475 Selling & administrative 8,064 8,316 8,817 9,354 Enterprise technology & product support 7,254 7,201 7,342 7,694 Depreciation & amortization 3,482 3,473 3,528 3,762 Total operating expenses 75,795 75,210 104,784 117,232 Operating income 15,324 18,379 29,806 23,924 Other income: Interest income 389 — — — Income before income taxes 15,713 18,379 29,806 23,924 Income tax provision 3,850 4,583 4,715 6,080 Net income $ 11,863 $ 13,796 $ 25,091 $ 17,844 Basic net income per share $ 0.18 $ 0.20 $ 0.37 $ 0.26 Diluted net income per share $ 0.18 $ 0.20 $ 0.37 $ 0.26 Weighted average shares outstanding: Basic 66,987 66,999 67,025 67,030 Diluted 66,987 66,999 67,025 67,166 For the Year Ended December 31, 2019 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: State enterprise revenues $ 69,853 $ 74,871 $ 73,257 $ 72,300 Software & services revenues 15,327 16,695 17,128 14,774 Total revenues 85,180 91,566 90,385 87,074 Operating expenses: State enterprise cost of revenues, exclusive of depreciation & amortization 41,978 45,081 43,821 44,610 Software & services cost of revenues, exclusive of depreciation & amortization 9,397 10,525 10,173 11,541 Selling & administrative 9,964 8,356 8,153 8,727 Enterprise technology & product support 6,445 6,745 6,743 6,917 Depreciation & amortization 2,421 3,130 3,524 3,535 Total operating expenses 70,205 73,837 72,414 75,330 Operating income 14,975 17,729 17,971 11,744 Other income: Interest income 604 577 729 604 Income before income taxes 15,579 18,306 18,700 12,348 Income tax provision 4,077 3,846 4,190 2,390 Net income $ 11,502 $ 14,460 $ 14,510 $ 9,958 Basic net income per share $ 0.17 $ 0.21 $ 0.21 $ 0.15 Diluted net income per share $ 0.17 $ 0.21 $ 0.21 $ 0.15 Weighted average shares outstanding: Basic 66,670 66,940 66,960 66,967 Diluted 66,670 66,940 66,960 66,967 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT Merger Agreement On February 9, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Tyler Technologies, Inc., a Delaware corporation (“Tyler Technologies”), and Topos Acquisition, Inc., a Delaware corporation and a wholly-owned subsidiary of Tyler Technologies (“Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with the Company (the “Merger” and, collectively with the other transactions contemplated by the Merger Agreement, the “Transactions”), with the Company continuing as the surviving corporation and as a wholly-owned subsidiary of Tyler Technologies. Consideration to the Company's Stockholders At the effective time of the Merger (“Effective Time”), each share of common stock of the Company (the “Common Stock”), issued and outstanding immediately prior to the Effective Time (other than shares of Common Stock (i) owned by Tyler Technologies, Merger Sub or any of their respective subsidiaries, (ii) owned by the Company or any of its subsidiaries, including shares held as treasury stock, (iii) for which appraisal rights have been demanded properly in accordance with Section 262 of the General Corporation Law of the State of Delaware or (iv) that are subject to Assumed RSAs (as defined below)), shall be converted into the right to receive $34.00 per share in cash, without interest (the “Merger Consideration”). Treatment of NIC Equity Awards and NIC Employee Stock Purchase Plan Immediately prior to the Effective Time, each outstanding restricted stock award granted under the Company’s equity compensation plan (each, a “NIC Restricted Stock Award”) that is fully vested and not subject to any restrictions (or that, pursuant to its terms as in effect on the date of the Merger Agreement or the terms of the Merger Agreement, will accelerate in full and no longer be subject to any further vesting as a result of or in connection with the consummation of the Transactions), will be released to the holder of such NIC Restricted Stock Award, to the extent not previously released, and converted into the right to receive, with respect to each share of Common Stock subject to such NIC Restricted Stock Award (as determined in accordance with the applicable award agreement), the Merger Consideration, less all applicable withholding and other authorized deductions. At the Effective Time, each NIC Restricted Stock Award that is outstanding immediately prior to the Effective Time and that vests solely based on the achievement of performance goals will automatically vest in full and be cancelled and converted into the right to receive, with respect to each share of Common Stock subject to such NIC Restricted Stock Award (as determined in accordance with the applicable award agreement), the Merger Consideration, less all applicable withholding and other authorized deductions. At the Effective Time, each outstanding NIC Restricted Stock Award that vests solely based on the passage of time (other than NIC Restricted Stock Awards that are converted into the right to receive the Merger Consideration pursuant to the Merger Agreement) (each, an “Assumed RSA”), will be assumed by Tyler Technologies and converted automatically into a Tyler Technologies restricted stock award on the same terms and conditions (including any terms and conditions relating to accelerated vesting upon a termination of employment in connection with or following the Effective Time) as applicable to such Assumed RSA immediately prior to the Effective Time, except that the number of shares of Tyler Technologies common stock subject to such Assumed RSA will equal the product obtained by multiplying the total number of shares of Common Stock subject to the Assumed RSA immediately prior to the Effective Time (as determined in accordance with the applicable award agreement) by the Restricted Stock Conversion Ratio, rounded up to the nearest whole share. Each Assumed RSA shall otherwise be subject to Tyler Technologies’ equity compensation plan. For purposes of the Merger Agreement, the “Restricted Stock Conversion Ratio” means the quotient, rounded (with simple rounding) to the fourth decimal place, obtained by dividing (i) the Merger Consideration by (ii) the volume weighted average closing sale price of one share of Tyler Technologies common stock as reported on the New York Stock Exchange for the 10 consecutive trading days ending on the trading day immediately preceding the date on which the Closing occurs (as adjusted as appropriate to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications, or similar events). Pursuant to the Merger Agreement, the Company will take all actions necessary with respect to the Company's employee stock purchase plan (the “ESPP”), to provide that, among other things, participation in the ESPP after the date of the Merger Agreement will be limited to the Company's employees who participate in the offering period currently in progress as of the date of the Merger Agreement, no new offering periods under the ESPP will commence after the date of the Merger Agreement and, subject to the consummation of the Merger, the ESPP will terminate as of immediately prior to the Effective Time. Board Approval The Company's Board of Directors (the “Board”) has unanimously (i) determined that the terms of the Merger Agreement and the Transactions, including the Merger, are fair to, and in the best interests of, the Company and its stockholders, (ii) approved the execution and delivery by the Company of the Merger Agreement, the performance by the Company of its covenants and agreements contained in the Merger Agreement and the consummation of the Merger and other Transactions upon the terms and subject to the conditions set forth in the Merger Agreement, (iii) recommended that the stockholders of the Company adopt the Merger Agreement, and (iv) directed that the adoption of the Merger Agreement be submitted to a vote of the Company’s stockholders. Conditions to Closing The consummation of the Merger (the “Closing”) is subject to certain conditions, including (i) the affirmative vote of the holders of a majority of the outstanding shares of Common Stock to adopt the Merger Agreement (the “Stockholder Approval”), (ii) the expiration or termination of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder, and (iii) the absence of any order or law enjoining or otherwise prohibiting the Merger. Each of Tyler Technologies’ and the Company’s obligation to consummate the Merger is also subject to additional customary conditions, including (x) the accuracy of the representations and warranties of the other party, subject to specified materiality qualifications, and (y) performance and compliance in all material respects by the other party with its obligations, covenants and agreements under the Merger Agreement. Consummation of the Merger is not subject to a financing condition. Representations, Warranties and Covenants The Merger Agreement contains customary representations, warranties and covenants made by each of the Company, Tyler Technologies and Merger Sub, including, among others, covenants by the Company regarding the conduct of its business during the pendency of the Transactions, public disclosures and other matters. Tyler Technologies has agreed to customary covenants related to treatment of employees and their compensation and benefits after Closing, including commitments to honor compensatory arrangements in connection with the Transactions. The Company is required, among other things, not to solicit alternative business combination transactions and, subject to certain exceptions, not to engage in discussions or negotiations regarding an alternative business combination transaction. The Company is required to convene a meeting of its stockholders to vote on the adoption of the Merger Agreement. The Company and Tyler Technologies are required to (i) use their respective reasonable best efforts to take all actions to consummate the Transactions, including taking all actions necessary to obtain antitrust approval, subject to certain limitations, and (ii) cooperate in connection with their efforts to obtain antitrust approval. Termination Rights Both Tyler Technologies and the Company may terminate the Merger Agreement under certain specified circumstances, including (a) if the Merger is not consummated by June 30, 2021, subject to one three month extension in order to obtain required regulatory approvals, (b) if the approval of the the Company's stockholders is not obtained, or (c) if the Company’s Board of Directors makes an adverse recommendation change with respect to the proposed transaction or to enter into a superior acquisition proposal. In certain circumstances in connection with the termination of the Merger Agreement, including if the Company's Board of Directors changes or withdraws its recommendation of the Merger to its stockholders or terminates the Merger Agreement to enter into an agreement with respect to a “superior proposal,” the Company will be required to pay Tyler Technologies a termination fee equal to $55.0 million in cash. The Merger Agreement and the above description have been included to provide investors and security holders with information regarding the terms of the agreement. They are not intended to provide any other factual information about Tyler Technologies, the Company or their respective subsidiaries or affiliates or stockholders. The representations, warranties, and covenants of the Company contained in the Merger Agreement were made solely for the benefit of Tyler Technologies and Merger Sub. The assertions embodied in those representations and warranties were made solely for purposes of allocating risk among the Company, Tyler Technologies and Merger Sub rather than establishing matters of fact and may be subject to important qualifications and limitations agreed to by the Company, Tyler Technologies, and Merger Sub in connection with the negotiated terms. Moreover, some of those representations and warranties may not be accurate or complete as of any specified date, may be subject to a contractual standard of materiality different from those generally applicable to the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) or may have been used for purposes of allocating risk among the Company, Tyler Technologies, and Merger Sub rather than establishing matters as facts. Investors should not rely on the representations, warranties, and covenants or any description thereof as characterizations of the actual state of facts of the Company or any of its subsidiaries or affiliates. If the Merger is consummated, the Company's Common Stock will be delisted from Nasdaq and deregistered under the Securities Exchange Act of 1934. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company classifies its revenues and cost of revenues into two categories: (1) state enterprise and (2) software & services. The state enterprise 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 those services provided on an enterprise-wide basis, to federal, state and local governments. The primary categories of operating expenses include: state enterprise cost of revenues, software & services cost of revenues, selling & administrative, enterprise technology & product support and depreciation & amortization. State enterprise cost of revenues consists of all direct costs associated with operating digital government services 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. Software & services cost of revenues consists of all direct project costs to provide services such as employee compensation and benefits (including stock-based compensation), payment processing fees required to process credit/debit card and automated clearinghouse transactions, 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 market development and sales, marketing, human resource management, corporate communications and public relations, administration, legal, finance and accounting, internal audit and all non-customer service-related costs. Enterprise technology & product support consist primarily of corporate-level expenses relating to information technology, product and security teams that support the centrally hosted infrastructure and platforms and SaaS payment processing and vertical platform solutions. Certain amounts in the consolidated statements of income for December 31, 2019 and 2018 were reclassified to conform to the current year presentation. In 2020, the Company began classifying the current Texas payment processing contract in the software & services category. The Company reclassified $30.4 million and $8.1 million of revenues and $28.2 million and $7.7 million of cost of revenues from this contract from the state enterprise category to the software & services category for the years ended December 31, 2019 and 2018, respectively. The reclassification had no impact on net income or cash flows for the years ended December 31, 2019 and 2018. |
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. In 2019, the Company had only one reportable segment, State Enterprise. During the first quarter of 2020, the Company made a change from one to two reportable segments, State Enterprise and Payments, which was based on quantitative and qualitative considerations, and was a result of recent changes in the Company's reporting structure to reclassify the Texas payment processing contract from the state enterprise category to the software & services category. In August 2020, the Company launched TourHealth services for rapid and secure COVID-19 testing, which during the fourth quarter of 2020, based on quantitative considerations, was included as a third reportable segment. Currently, the Company operates with three reportable segments: State Enterprise, Payments and TourHealth. All prior year amounts have been restated to conform to the current year presentation. See Note 13, Reportable Segments and Related Information, for additional information regarding the Company's 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 receivableThe 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, and its relationship with, and the expected future 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 impairment losses on property and equipment during the periods presented. |
Software development costs and intangible assets | Software development costs and intangible assets, net The Company has finite-lived intangible assets that consist of capitalized software development costs and acquired software. 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 estimated economic life for finite-lived intangible assets is typically 3 to 5 years from the date the software is placed in production. Intangible assets are recorded at cost, less accumulated amortization and are evaluated for recoverability of possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts of the asset group to the future undiscounted cash flows the assets are expected to generate. If such review indicated that the carrying amount of an intangible asset group was not recoverable, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset group exceeds its estimated fair value. The Company has not recorded any impairment losses on intangible assets during the periods presented. The majority of the costs incurred by the Company to obtain a contract, which consist primarily 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 state enterprise cost of 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. |
Goodwill and intangible assets | Goodwill and intangible assets In accordance with ASC 350, Intangibles - Goodwill and Other |
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, subcontractor costs, employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions) and third-party professional service fees. |
Revenue recognition | Revenue recognition The Company accounts for revenue in accordance with ASC 606 , Revenue from Contracts with Customers . 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) development services and (iii) fixed-fee services. The following table summarizes, by reportable segment, the principal activities from which the Company generates revenue (in thousands): Reportable Segments State Enterprise Payments TourHealth All Other Consolidated December 31, 2020 IGS $ 209,903 $ — $ — $ — $ 209,903 DHR 85,337 — — — 85,337 Other — 41,092 22,415 20,799 84,306 Total transaction-based 295,240 41,092 22,415 20,799 379,546 Development services 31,530 — — — 31,530 Fixed-fee services 4,950 — 39,219 5,209 49,378 Total revenues $ 331,720 $ 41,092 $ 61,634 $ 26,008 $ 460,454 December 31, 2019 IGS $ 183,987 $ — $ — $ — $ 183,987 DHR 91,059 — — — 91,059 Other — 37,976 — 22,019 59,995 Total transaction-based 275,046 37,976 — 22,019 335,041 Development services 10,285 — — — 10,285 Fixed-fee services 4,950 — — 3,929 8,879 Total revenues $ 290,281 $ 37,976 $ — $ 25,948 $ 354,205 December 31, 2018 IGS $ 195,155 $ — $ — $ — $ 195,155 DHR 100,241 — — — 100,241 Other — 10,936 — 19,813 30,749 Total transaction-based 295,396 10,936 — 19,813 326,145 Development services 12,146 — — — 12,146 Fixed-fee services 4,950 — — 1,659 6,609 Total revenues $ 312,492 $ 10,936 $ — $ 21,472 $ 344,900 Transaction-based Revenues The Company recognizes revenue from providing outsourced digital services to its government partners primarily utilizing the Company's internally developed proprietary applications. Under these contracts, the Company agrees to provide continuous access to digital government services that allow end-user 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. The processing of transactions is highly automated based on contractual terms with the Company's government partners. 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 digital solutions over the contractual term and by processing transactions as they are initiated by end-user consumers. The performance obligation is satisfied when the Company provides the access and it is used by the end-user 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 end-user 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 equal to or greater than the fair value of the consideration 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. Development Services Revenues The Company earns development services revenues primarily under contracts to provide software development and other time and materials services to its 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 development contracts 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 development 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 development contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of December 31, 2020, the total transaction price allocated to unsatisfied performance obligations was approximately $7.2 million. Fixed-fee Services Revenues Fixed-fee services revenues primarily consist of revenues from providing recurring fixed-fee services for the Company’s government partner in Indiana and other contracts for SaaS subscription-based services in the Company's software & services businesses. The Indiana 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, 2020, the Company’s Indiana state enterprise contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. The SaaS subscription-based service contracts in the Company's software & services businesses are a fixed-fee single performance obligation to provide government partners continuous access to digital services. The Company satisfies its performance obligation by providing access to digital services over the contractual term. The Company recognizes revenue for the fixed subscription fees ratably over the non-cancelable term of the contract, commencing on the date the customer has access to the solution. As of December 31, 2020, the unsatisfied performance obligations related to these subscription obligations was $17.3 million, which will be recognized over the term of such contracts, generally 1 - 5 years. TourHealth Services Revenues In August 2020, the Company began providing a rapid and secure COVID-19 testing solution referred to as TourHealth, featuring digital engagement, assessment and scheduling, as well as in-person clinical testing and logistics. TourHealth service contracts are either a transaction-based (per test) or fixed-fee single performance obligation to provide continuous access to COVID-19 testing services over a specified period of time. The Company satisfies its performance obligation by providing services to the government partners over time. For TourHealth transaction-based fee contracts, the fees earned by the Company are typically usage-based and calculated based on the number of tests processed each day at the contractual fee earned by the Company for each test. These usage-based fees are deemed to be variable consideration that meets the practical expedient within ASC 606, which are fully constrained and recognized once the uncertainties associated with the constraint are resolved, which is when the related testing service occurs each day. For TourHealth fixed-fee contracts, consideration consists of a fee that is recognized monthly as the performance obligation is satisfied. As of December 31, 2020, the unsatisfied performance obligations related to these fixed-fee contracts was $2.0 million which is expected to be recognized during the first quarter of 2021. Unearned and Unbilled 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, 2020 and 2019 were approximately $6.7 million and $3.8 million, respectively. The change in the deferred revenue balance for the year primarily reflects $31.4 million of cash payments received or due in advance of satisfying performance obligations, offset by $28.5 million of revenues recognized that were previously included in deferred revenue. Unbilled revenues is recorded when revenue is recognized in advance of the amounts invoiced to the customer and is recorded in other current assets in the consolidated balance sheets. Unbilled revenues at December 31, 2020 and 2019 were approximately $13.2 million and $3.4 million, respectively. The change in the unbilled revenue balance for the year primarily reflects additions to the unbilled revenue balance of $41.1 million and $31.3 million of amounts billed during the period. Contract Costs Costs incurred to obtain customer contracts, such as sales commissions, are deferred and recorded within other current assets and other assets when such costs are determined to be incremental to obtaining a contract, would not have been incurred otherwise and the Company expects to recover those costs. For the years ended December 31, 2020 and 2019, the incremental costs incurred to obtain contracts with customers were insignificant. |
Leases | Leases All of the Company's lease arrangements are considered operating leases and are included in right of use lease assets and lease liabilities on the consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheet and are expensed on a straight-line basis over the term of the lease. On the commencement date of a lease, the Company recognizes a lease liability and corresponding right of use lease asset based on the present value of lease payments over the lease term. Lease agreements generally do not provide an implicit rate and therefore the Company's incremental borrowing rate at the commencement date is used to determine the present value of lease payments. Accretion of the discount on the lease liability is calculated under the effective interest method and included in operating lease cost. The right of use asset also includes any initial direct costs and prepaid lease payments and excludes any lease incentives received by the lessor. The right of use asset is amortized over the lease term and is included in operating lease cost. The result is a single operating lease cost recognized on a straight-line basis over the term of the lease. |
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 fair value of the award and recognizes 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 expense ratably over the performance period based upon the probable number of shares expected to vest. See Note 12 |
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. |
Earnings per share | Earnings per share The Company applies the two-class method of computing earnings per share as the Company's service-based restricted stock awards are entitled to non-forfeitable dividends and are therefore considered to be participating securities. The two- |
Business combinations | Business combinations The Company accounts for the acquisition of a business in accordance with ASC 805, Business Combinations , which requires the identifiable assets acquired, the liabilities assumed and any noncontrolling interests in an acquired business to be recorded at their fair values as of the date of acquisition. The excess of the fair value of purchase consideration over the fair values of identifiable assets and liabilities is recorded as goodwill. Fair value measurements require extensive use of estimates and assumptions, particularly with respect to intangible assets, which are based on all available information at the date of acquisition, including estimates of future cash flows to be generated by the acquired assets, useful lives and discount rates. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired and related amortization expense. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. |
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, 2020, there were no customers that accounted for 10% or more of the Company's total accounts receivable. At December 31, 2019, LexisNexis Risk Solutions accounted for approximately 14% 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 FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in U.S. 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, companies 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. On January 1, 2020, the Company adopted the standard and all the related amendments, using a modified retrospective |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) development services and (iii) fixed-fee services. The following table summarizes, by reportable segment, the principal activities from which the Company generates revenue (in thousands): Reportable Segments State Enterprise Payments TourHealth All Other Consolidated December 31, 2020 IGS $ 209,903 $ — $ — $ — $ 209,903 DHR 85,337 — — — 85,337 Other — 41,092 22,415 20,799 84,306 Total transaction-based 295,240 41,092 22,415 20,799 379,546 Development services 31,530 — — — 31,530 Fixed-fee services 4,950 — 39,219 5,209 49,378 Total revenues $ 331,720 $ 41,092 $ 61,634 $ 26,008 $ 460,454 December 31, 2019 IGS $ 183,987 $ — $ — $ — $ 183,987 DHR 91,059 — — — 91,059 Other — 37,976 — 22,019 59,995 Total transaction-based 275,046 37,976 — 22,019 335,041 Development services 10,285 — — — 10,285 Fixed-fee services 4,950 — — 3,929 8,879 Total revenues $ 290,281 $ 37,976 $ — $ 25,948 $ 354,205 December 31, 2018 IGS $ 195,155 $ — $ — $ — $ 195,155 DHR 100,241 — — — 100,241 Other — 10,936 — 19,813 30,749 Total transaction-based 295,396 10,936 — 19,813 326,145 Development services 12,146 — — — 12,146 Fixed-fee services 4,950 — — 1,659 6,609 Total revenues $ 312,492 $ 10,936 $ — $ 21,472 $ 344,900 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (in thousands, except per share amounts): December 31, 2020 2019 2018 Numerator: Net income $ 68,594 $ 50,430 $ 58,269 Less: Income allocated to participating securities (736) (546) (629) Net income available to common stockholders $ 67,858 $ 49,884 $ 57,640 Denominator: Weighted average shares - basic 67,010 66,884 66,499 Performance-based restricted stock awards 107 — 61 Weighted average shares - diluted 67,117 66,884 66,560 Basic net income per share: $ 1.01 $ 0.75 $ 0.87 Diluted net income per share: $ 1.01 $ 0.75 $ 0.87 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations And Asset Acquisitions [Abstract] | |
Schedule of fair value of acquisition | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands). As of May 1, 2019 Current assets $ 451 Software 4,200 Customer relationships 425 Non-compete agreements 250 Trade name 35 Goodwill 5,965 Other assets 11 Total assets acquired 11,337 Accrued expenses and other liabilities (377) Net assets acquired $ 10,960 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible assets, net | Intangible assets, net consisted of the following (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Software development cost $ 39,342 $ (23,417) $ 15,925 $ 30,861 $ (16,951) $ 13,910 Acquired software 11,241 (6,880) 4,361 11,241 (3,359) 7,882 Customer relationships 425 (101) 324 425 (40) 385 Non-compete agreements 250 (139) 111 250 (56) 194 Trade name 35 (19) 16 35 (8) 27 Total $ 51,293 $ (30,556) $ 20,737 $ 42,812 $ (20,414) $ 22,398 |
Estimated amortization expense in future years | The total estimated intangible asset amortization expense in future years is as follows (in thousands): Fiscal Year 2021 $ 10,293 2022 6,168 2023 3,854 2024 341 2025 61 Thereafter 20 $ 20,737 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consisted of the following at December 31 (in thousands): 2020 2019 Equipment $ 23,808 $ 24,936 Purchased software 8,566 8,769 Furniture and fixtures 6,016 5,922 Leasehold improvements 2,071 2,181 40,461 41,808 Less accumulated depreciation (31,120) (31,717) Property and equipment, net $ 9,341 $ 10,091 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future lease payments | The aggregate future lease payments for operating leases as of December 31, 2020 are as follows (in thousands): 2020 Fiscal Year 2021 $ 4,692 2022 3,638 2023 2,073 2024 1,345 2025 689 Total minimum lease payments 12,437 Less: interest (1,187) Total lease liabilities $ 11,250 |
Schedule of other lease information | Other information related to operating leases is as follows (in thousands): 2020 Weighted-average discount rate 2.4 % Supplement cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 4,328 Right of use assets obtained in exchange for new lease liabilities $ 4,429 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of dividends declared | The Company's Board of Directors declared and paid the following dividends during the years ended December 31, 2020 and 2019 (payment amount in millions): Declaration Date Dividend per Share Record Date Payment Date Amount October 26, 2020 $0.09 December 4, 2020 December 18, 2020 $6.1 July 27, 2020 0.09 September 8, 2020 September 22, 2020 6.1 April 23, 2020 0.09 June 11, 2020 June 25, 2020 6.1 January 27, 2020 0.09 March 4, 2020 March 18, 2020 6.1 October 28, 2019 0.08 December 4, 2019 December 18, 2019 5.4 July 29, 2019 0.08 September 6, 2019 September 20, 2019 5.4 May 7, 2019 0.08 June 11, 2019 June 25, 2019 5.4 January 28, 2019 0.08 March 5, 2019 March 19, 2019 5.4 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Current income taxes: Federal $ 17,150 $ 10,343 $ 13,704 State 3,561 2,478 2,255 Total 20,711 12,821 15,959 Deferred income taxes: Federal (946) 1,182 1,466 State (537) 500 (18) Total (1,483) 1,682 1,448 Total income tax provision $ 19,228 $ 14,503 $ 17,407 |
Schedule of deferred income tax assets and liabilities | The tax effects of the temporary differences that gave rise to significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in thousands): 2020 2019 Deferred tax assets: Stock-based compensation $ 1,330 $ 983 Federal benefit of state uncertain tax positions 563 746 Accrued vacation 618 521 Deferred rent 112 95 Deferred payroll tax 947 — State net operating loss carryforwards 53 228 Allowance for doubtful accounts 552 311 Right of use lease liability 2,851 2,840 Other 873 465 Gross deferred tax assets 7,899 6,189 Less: Valuation allowance (4) (335) Total deferred tax assets 7,895 5,854 Deferred tax liabilities: Property and equipment (1,830) (2,027) Capitalized software development costs (4,423) (3,544) Right of use lease asset (2,739) (2,746) Total deferred tax liabilities (8,992) (8,317) Net deferred tax liability $ (1,097) $ (2,463) |
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, 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 3.5 % 5.0 % 2.3 % Federal and state tax credits (2.1) % (0.8) % (2.3) % Tax deficit (benefit) from restricted stock vestings (0.3) % (0.1) % 0.3 % Uncertain tax positions (release) (0.6) % (5.2) % 0.8 % Nondeductible expenses 0.7 % 2.2 % 0.8 % Other, net (0.3) % 0.2 % 0.1 % Effective federal and state income tax rate 21.9 % 22.3 % 23.0 % |
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, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Balance at January 1 $ 5,048 $ 8,651 $ 8,020 Additions for tax positions of prior years 247 208 459 Additions for tax positions of current years 368 393 1,248 Expiration of the statute of limitations (1,202) (3,182) (1,024) Reductions for tax positions of prior years (103) (217) (52) Settlements — (805) — Balance at December 31 $ 4,358 $ 5,048 $ 8,651 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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, 2020 2019 2018 State enterprise cost of revenues, exclusive of depreciation & amortization $ 1,585 $ 1,499 $ 1,516 Software & services cost of revenues, exclusive of depreciation & amortization 162 101 151 Selling & administrative 4,599 4,495 3,994 Enterprise technology & product support 812 674 677 Stock-based compensation expense before income taxes $ 7,158 $ 6,769 $ 6,338 |
Schedule of service-based restricted stock activity | A summary of service-based restricted stock activity for the year ended December 31, 2020 is presented below: Service-based Restricted Weighted Outstanding at January 1, 2020 712,162 $ 16.81 Granted 341,273 $ 21.12 Vested (298,479) $ 17.20 Canceled (23,830) $ 17.53 Outstanding at December 31, 2020 731,126 $ 18.64 Expected to vest at December 31, 2020 731,126 $ 18.64 |
Schedule of performance-based restricted stock activity | A summary of performance-based restricted stock activity for the year ended December 31, 2020 is presented below: Performance- Weighted Outstanding at January 1, 2020 338,470 $ 17.01 Granted 137,052 $ 20.55 Vested — $ 22.00 Canceled (87,241) $ 22.00 Outstanding at December 31, 2020 388,281 $ 17.14 Expected to vest at December 31, 2020 149,801 $ 18.48 |
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. Offering Ending March 31, 2021 Offering Ending March 31, 2020 Offering Ending March 31, 2019 Risk-free interest rate 0.16 % 2.41 % 2.08 % Expected dividend yield 1.90 % 1.93 % 2.06 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 41.09 % 29.94 % 35.51 % Weighted average fair value of ESPP rights $ 6.37 $ 4.49 $ 3.75 |
REPORTABLE SEGMENTS AND RELAT_2
REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial information for reportable and segments | The table below reflects summarized financial information for the Company’s reportable segments for the years ended December 31 (in thousands): State Enterprise Payments TourHealth All Other Other Consolidated 2020 Revenues $ 331,720 $ 41,092 $ 61,634 $ 26,008 $ — $ 460,454 Costs & expenses 199,901 32,314 51,606 10,913 64,042 358,776 Depreciation & 2,682 6 — 4,516 7,041 14,245 Operating income (loss) $ 129,137 $ 8,772 $ 10,028 $ 10,579 $ (71,083) $ 87,433 2019 Revenues $ 290,281 $ 37,976 $ — $ 25,948 $ — $ 354,205 Costs & expenses 175,490 30,922 — 10,714 62,050 279,176 Depreciation & amortization 2,723 3 — 1,619 8,265 12,610 Operating income (loss) $ 112,068 $ 7,051 $ — $ 13,615 $ (70,315) $ 62,419 2018 Revenues $ 312,492 $ 10,936 $ — $ 21,472 $ — $ 344,900 Costs & expenses 187,321 8,536 — 8,175 56,691 260,723 Depreciation & amortization 2,985 — — 100 6,032 9,117 Operating income (loss) $ 122,186 $ 2,400 $ — $ 13,197 $ (62,723) $ 75,060 |
Schedule of concentration risk by total consolidated revenues | The following table identifies each type of service, end-user consumer and state government that accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31: Percentage of Total Revenues 2020 2019 2018 Type of Service Motor Vehicle Driver History Record Retrieval 19 % 26 % 29 % Motor Vehicle Registrations 11 % 11 % 14 % TourHealth COVID-19 Services 13 % N/A N/A Consumer LexisNexis Risk Solutions 11 % 15 % 19 % (provides motor vehicle driver history records to the insurance industry) State Partner Colorado N/A 10 % N/A Texas N/A N/A 17 % (2018 consists of the legacy and payment processing contracts) |
UNAUDITED QUARTERLY OPERATING_2
UNAUDITED QUARTERLY OPERATING RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly operating results | The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower 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, 2020 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: State enterprise revenues $ 74,411 $ 77,804 $ 91,475 $ 88,030 Software & services revenues 16,708 15,785 43,115 53,126 Total revenues 91,119 93,589 134,590 141,156 Operating expenses: State enterprise cost of revenues, exclusive of depreciation & amortization 46,271 45,876 53,807 53,947 Software & services cost of revenues, exclusive of depreciation & amortization 10,724 10,344 31,290 42,475 Selling & administrative 8,064 8,316 8,817 9,354 Enterprise technology & product support 7,254 7,201 7,342 7,694 Depreciation & amortization 3,482 3,473 3,528 3,762 Total operating expenses 75,795 75,210 104,784 117,232 Operating income 15,324 18,379 29,806 23,924 Other income: Interest income 389 — — — Income before income taxes 15,713 18,379 29,806 23,924 Income tax provision 3,850 4,583 4,715 6,080 Net income $ 11,863 $ 13,796 $ 25,091 $ 17,844 Basic net income per share $ 0.18 $ 0.20 $ 0.37 $ 0.26 Diluted net income per share $ 0.18 $ 0.20 $ 0.37 $ 0.26 Weighted average shares outstanding: Basic 66,987 66,999 67,025 67,030 Diluted 66,987 66,999 67,025 67,166 For the Year Ended December 31, 2019 (in thousands, except per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues: State enterprise revenues $ 69,853 $ 74,871 $ 73,257 $ 72,300 Software & services revenues 15,327 16,695 17,128 14,774 Total revenues 85,180 91,566 90,385 87,074 Operating expenses: State enterprise cost of revenues, exclusive of depreciation & amortization 41,978 45,081 43,821 44,610 Software & services cost of revenues, exclusive of depreciation & amortization 9,397 10,525 10,173 11,541 Selling & administrative 9,964 8,356 8,153 8,727 Enterprise technology & product support 6,445 6,745 6,743 6,917 Depreciation & amortization 2,421 3,130 3,524 3,535 Total operating expenses 70,205 73,837 72,414 75,330 Operating income 14,975 17,729 17,971 11,744 Other income: Interest income 604 577 729 604 Income before income taxes 15,579 18,306 18,700 12,348 Income tax provision 4,077 3,846 4,190 2,390 Net income $ 11,502 $ 14,460 $ 14,510 $ 9,958 Basic net income per share $ 0.17 $ 0.21 $ 0.21 $ 0.15 Diluted net income per share $ 0.17 $ 0.21 $ 0.21 $ 0.15 Weighted average shares outstanding: Basic 66,670 66,940 66,960 66,967 Diluted 66,670 66,940 66,960 66,967 |
THE COMPANY (Details)
THE COMPANY (Details) | Dec. 31, 2020channel |
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 Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020USD ($)segmentcategory | Mar. 31, 2020segment | Dec. 31, 2020USD ($)category | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Number of revenue and cost categories (in categories) | category | 2 | 2 | ||||
Number of reportable segments | segment | 3 | 2 | 1 | |||
Allowance for doubtful accounts | $ 2,200 | $ 2,200 | $ 1,200 | |||
Revenue termination of contract | 30 days | |||||
Unearned revenue | 6,700 | $ 6,700 | 3,800 | |||
Cash payments received | 31,400 | |||||
Revenues recognized | 28,500 | |||||
Unbilled revenues | 13,200 | 13,200 | 3,400 | |||
Retained earnings | 163,686 | 163,686 | $ 122,713 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Retained earnings | $ 300 | |||||
Accounts receivable | Credit concentration risk | LexisNexis risk solutions | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 14.00% | |||||
Development services | Time-and-materials Contract | ||||||
Significant Accounting Policies [Line Items] | ||||||
Remaining performance obligation | $ 7,200 | $ 7,200 | ||||
Development services | Time-and-materials Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Performance obligation, timing | 1 year | 1 year | ||||
State enterprise revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Indiana | ||||||
Significant Accounting Policies [Line Items] | ||||||
Performance obligation, timing | 1 month | 1 month | ||||
Subscriptions | Fixed-price contract | ||||||
Significant Accounting Policies [Line Items] | ||||||
Remaining performance obligation | $ 17,300 | $ 17,300 | ||||
TourHealth services | ||||||
Significant Accounting Policies [Line Items] | ||||||
Unbilled revenues, revenue recognized in advance of billings | 41,100 | |||||
TourHealth services | Transaction-based fee contract | ||||||
Significant Accounting Policies [Line Items] | ||||||
Remaining performance obligation | $ 2,000 | 2,000 | ||||
Other government-partners | ||||||
Significant Accounting Policies [Line Items] | ||||||
Unbilled revenues, revenue recognized in advance of billings | $ 31,300 | |||||
Furniture and fixtures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 8 years | |||||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of intangible asset | 3 years | |||||
Minimum | Subscriptions | Fixed-price contract | ||||||
Significant Accounting Policies [Line Items] | ||||||
Performance obligation, timing | 1 year | 1 year | ||||
Minimum | Equipment | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
Minimum | Purchased software | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of intangible asset | 5 years | |||||
Maximum | Subscriptions | Fixed-price contract | ||||||
Significant Accounting Policies [Line Items] | ||||||
Performance obligation, timing | 5 years | 5 years | ||||
Maximum | Equipment | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 10 years | |||||
Maximum | Purchased software | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 5 years | |||||
Maximum | Leasehold improvements | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 5 years | |||||
Revenue | Software & services revenues | ||||||
Significant Accounting Policies [Line Items] | ||||||
Prior period reclassification adjustment | $ 30,400 | $ 8,100 | ||||
Revenue | State enterprise contracts | ||||||
Significant Accounting Policies [Line Items] | ||||||
Prior period reclassification adjustment | (30,400) | (8,100) | ||||
Cost of revenues | Software & services revenues | ||||||
Significant Accounting Policies [Line Items] | ||||||
Prior period reclassification adjustment | 28,200 | 7,700 | ||||
Cost of revenues | State enterprise contracts | ||||||
Significant Accounting Policies [Line Items] | ||||||
Prior period reclassification adjustment | $ (28,200) | $ (7,700) |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||||||||||
Total revenues | $ 141,156 | $ 134,590 | $ 93,589 | $ 91,119 | $ 87,074 | $ 90,385 | $ 91,566 | $ 85,180 | $ 460,454 | $ 354,205 | $ 344,900 |
IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 209,903 | 183,987 | 195,155 | ||||||||
DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 85,337 | 91,059 | 100,241 | ||||||||
Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 84,306 | 59,995 | 30,749 | ||||||||
Total transaction-based | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 379,546 | 335,041 | 326,145 | ||||||||
Development services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 31,530 | 10,285 | 12,146 | ||||||||
Fixed-fee services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 49,378 | 8,879 | 6,609 | ||||||||
State Enterprise | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 331,720 | 290,281 | 312,492 | ||||||||
State Enterprise | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 209,903 | 183,987 | 195,155 | ||||||||
State Enterprise | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 85,337 | 91,059 | 100,241 | ||||||||
State Enterprise | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
State Enterprise | Total transaction-based | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 295,240 | 275,046 | 295,396 | ||||||||
State Enterprise | Development services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 31,530 | 10,285 | 12,146 | ||||||||
State Enterprise | Fixed-fee services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 4,950 | 4,950 | 4,950 | ||||||||
Payments | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 41,092 | 37,976 | 10,936 | ||||||||
Payments | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Payments | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Payments | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 41,092 | 37,976 | 10,936 | ||||||||
Payments | Total transaction-based | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 41,092 | 37,976 | 10,936 | ||||||||
Payments | Development services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Payments | Fixed-fee services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
TourHealth | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 61,634 | 0 | 0 | ||||||||
TourHealth | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
TourHealth | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
TourHealth | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 22,415 | 0 | 0 | ||||||||
TourHealth | Total transaction-based | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 22,415 | 0 | 0 | ||||||||
TourHealth | Development services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
TourHealth | Fixed-fee services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 39,219 | 0 | 0 | ||||||||
All Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 26,008 | 25,948 | 21,472 | ||||||||
All Other | IGS | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
All Other | DHR | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
All Other | Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 20,799 | 22,019 | 19,813 | ||||||||
All Other | Total transaction-based | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 20,799 | 22,019 | 19,813 | ||||||||
All Other | Development services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
All Other | Fixed-fee services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | $ 5,209 | $ 3,929 | $ 1,659 |
OUTSOURCED GOVERNMENT CONTRAC_2
OUTSOURCED GOVERNMENT CONTRACTS (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($)renewal_optioncontract | Dec. 31, 2020USD ($)contract | Dec. 31, 2018USD ($) | |
Contracts [Line Items] | |||
Performance bond commitments | $ | $ 38.2 | $ 38.2 | |
Termination without cause contracts | State enterprise contracts | |||
Contracts [Line Items] | |||
Number of contracts that can be terminated | 14 | 14 | |
Termination without cause contracts | Software & services revenues | |||
Contracts [Line Items] | |||
Number of contracts that can be terminated | 3 | 3 | |
Termination without cause contracts | Government contracts concentration risk | Consolidated revenues | |||
Contracts [Line Items] | |||
Concentration risk percentage | 48.00% | ||
Expiring contracts | |||
Contracts [Line Items] | |||
Number of contracts that expire within the 12-month period | 11 | 11 | |
Contract expiration period following year end | 12 months | ||
Number of contracts with renewal provisions | 5 | ||
Expiring contracts | Government contracts concentration risk | Consolidated revenues | |||
Contracts [Line Items] | |||
Concentration risk percentage | 28.00% | ||
Texas legacy contract | |||
Contracts [Line Items] | |||
Severance costs | $ | $ 1 | ||
Texas legacy contract | Government contracts concentration risk | Consolidated revenues | |||
Contracts [Line Items] | |||
Concentration risk percentage | 14.00% | ||
State enterprise revenue | $ | $ 49 | ||
Payment processing service contracts | State of Florida | |||
Contracts [Line Items] | |||
Term of contract | 5 years | ||
Number of options to extend | renewal_option | 1 | ||
Term of contract extension | 5 years | ||
Enterprise-wide digital government service contracts | State of Iowa | |||
Contracts [Line Items] | |||
Term of contract | 5 years | ||
Term of contract extension | 5 years |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income | $ 17,844 | $ 25,091 | $ 13,796 | $ 11,863 | $ 9,958 | $ 14,510 | $ 14,460 | $ 11,502 | $ 68,594 | $ 50,430 | $ 58,269 |
Less: Income allocated to participating securities | (736) | (546) | (629) | ||||||||
Net income available to common stockholders | $ 67,858 | $ 49,884 | $ 57,640 | ||||||||
Denominator: | |||||||||||
Basic (in shares) | 67,030 | 67,025 | 66,999 | 66,987 | 66,967 | 66,960 | 66,940 | 66,670 | 67,010 | 66,884 | 66,499 |
Shares issuable in lieu of dividend payments on performance-based restricted stock awards (in shares) | 107 | 0 | 61 | ||||||||
Weighted average shares - diluted (in shares) | 67,166 | 67,025 | 66,999 | 66,987 | 66,967 | 66,960 | 66,940 | 66,670 | 67,117 | 66,884 | 66,560 |
Basic net income per share: | |||||||||||
Basic net income per share (in usd per share) | $ 0.26 | $ 0.37 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.21 | $ 0.21 | $ 0.17 | $ 1.01 | $ 0.75 | $ 0.87 |
Diluted net income per share: | |||||||||||
Diluted net income per share (in usd per share) | $ 0.26 | $ 0.37 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.21 | $ 0.21 | $ 0.17 | $ 1.01 | $ 0.75 | $ 0.87 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) $ in Thousands | May 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Cash consideration transferred | $ 0 | $ 10,000 | $ 0 | |
Leap Orbit LLC | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 3,600 | |||
Contingent consideration | $ 3,500 | |||
Contingent consideration decrease from payment | $ 3,500 | |||
Software | Leap Orbit LLC | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 3 years | |||
Complia LLC | ||||
Business Acquisition [Line Items] | ||||
Cash consideration transferred | $ 10,000 | |||
Potential max payout for earn-out | 5,000 | |||
Contingent consideration liability | 1,000 | |||
Consideration transferred | $ 11,000 | |||
Complia LLC | Software | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 5 years | |||
Complia LLC | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 7 years | |||
Complia LLC | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 3 years |
ACQUISITIONS - Net Assets Acqui
ACQUISITIONS - Net Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | May 01, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,965 | $ 5,965 | |
Complia LLC | |||
Business Acquisition [Line Items] | |||
Current assets | $ 451 | ||
Other assets | 11 | ||
Total assets acquired | 11,337 | ||
Accrued expenses and other liabilities | (377) | ||
Net assets acquired | 10,960 | ||
Complia LLC | Software & services revenues | |||
Business Acquisition [Line Items] | |||
Goodwill | 5,965 | ||
Complia LLC | Software | |||
Business Acquisition [Line Items] | |||
Intangible assets | 4,200 | ||
Complia LLC | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | 425 | ||
Complia LLC | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Intangible assets | 250 | ||
Complia LLC | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 35 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 42,812 | $ 51,293 |
Accumulated Amortization | (20,414) | (30,556) |
Net Book Value | 22,398 | 20,737 |
Complia and Leap Orbit Acquisitions | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | 8,400 | |
Software development cost | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 30,861 | 39,342 |
Accumulated Amortization | (16,951) | (23,417) |
Net Book Value | 13,910 | 15,925 |
Acquired software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 11,241 | 11,241 |
Accumulated Amortization | (3,359) | (6,880) |
Net Book Value | 7,882 | 4,361 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 425 | 425 |
Accumulated Amortization | (40) | (101) |
Net Book Value | 385 | 324 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 250 | 250 |
Accumulated Amortization | (56) | (139) |
Net Book Value | 194 | 111 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 35 | 35 |
Accumulated Amortization | (8) | (19) |
Net Book Value | $ 27 | $ 16 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization of intangible assets | $ 10,100 | $ 8,300 | $ 3,700 |
2021 | 10,293 | ||
2022 | 6,168 | ||
2023 | 3,854 | ||
2024 | 341 | ||
2025 | 61 | ||
Thereafter | 20 | ||
Net Book Value | $ 20,737 | $ 22,398 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Equipment | $ 23,808 | $ 24,936 | |
Purchased software | 8,566 | 8,769 | |
Furniture and fixtures | 6,016 | 5,922 | |
Leasehold improvements | 2,071 | 2,181 | |
Property and equipment, gross | 40,461 | 41,808 | |
Less accumulated depreciation | (31,120) | (31,717) | |
Property and equipment, net | 9,341 | 10,091 | |
Depreciation expense | $ 4,100 | $ 4,300 | $ 5,400 |
DEBT OBLIGATIONS AND COLLATER_2
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS (Details) - USD ($) | May 01, 2019 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 10,000,000 | |
Option to increase borrowing capacity | $ 50,000,000 | |
Letters of credit, maximum effective in force period | 1 year | |
Unsecured Credit Agreement | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility, available borrowing capacity | $ 4,800,000 | |
Expiration term | 1 year | |
Unsecured Credit Agreement | Covenant Requirement | ||
Debt Instrument [Line Items] | ||
Consolidated tangible net worth required | $ 36,000,000 | |
Consolidated leverage ratio | 150.00% | |
Credit Card | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 1,000,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | 5,000,000 | |
Revolving Credit Facility | Forth Amended Credit Agreement | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.15% | |
Revolving Credit Facility | Unsecured Credit Agreement | ||
Debt Instrument [Line Items] | ||
Credit facility, outstanding letters of credit | 200,000 | |
Credit facility, available borrowing capacity | $ 9,800,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 3 years 2 months 12 days | ||
Lease cost | $ 6 | $ 5.8 | $ 5.3 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 9 years |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Lease Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 4,692 |
2022 | 3,638 |
2023 | 2,073 |
2024 | 1,345 |
2025 | 689 |
Total minimum lease payments | 12,437 |
Less: interest | (1,187) |
Total lease liabilities | $ 11,250 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Other Lease Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted-average discount rate | 2.40% |
Cash paid for amounts included in the measurement of lease liabilities | $ 4,328 |
Right of use assets obtained in exchange for new lease liabilities | $ 4,429 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Mar. 17, 2021 | Feb. 01, 2021 | Dec. 18, 2020 | Oct. 06, 2020 | Sep. 22, 2020 | Jul. 27, 2020 | Jun. 25, 2020 | Apr. 23, 2020 | Mar. 18, 2020 | Jan. 27, 2020 | Dec. 18, 2019 | Oct. 28, 2019 | Sep. 20, 2019 | Jul. 29, 2019 | Jun. 25, 2019 | May 07, 2019 | Mar. 19, 2019 | Jan. 28, 2019 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividends declared (in usd per share) | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | |||||||||||||||
Dividend payments | $ 6,100,000 | $ 6,100,000 | $ 6,100,000 | $ 6,100,000 | $ 5,400,000 | $ 5,400,000 | $ 5,400,000 | $ 5,400,000 | $ 24,398,000 | $ 21,649,000 | $ 21,521,000 | ||||||||||||
Stock repurchase program, authorized amount | $ 25,000,000 | ||||||||||||||||||||||
Shares repurchased (in shares) | 241,180 | ||||||||||||||||||||||
Shares repurchased, weighted average purchase price (in usd per share) | $ 16.33 | ||||||||||||||||||||||
Shares repurchased, value | $ 3,900,000 | ||||||||||||||||||||||
Forecast | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividend payments | $ 6,100,000 | ||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividends declared (in usd per share) | $ 0.09 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income taxes: | |||||||||||
Federal | $ 17,150 | $ 10,343 | $ 13,704 | ||||||||
State | 3,561 | 2,478 | 2,255 | ||||||||
Total | 20,711 | 12,821 | 15,959 | ||||||||
Deferred income taxes: | |||||||||||
Federal | (946) | 1,182 | 1,466 | ||||||||
State | (537) | 500 | (18) | ||||||||
Total | (1,483) | 1,682 | 1,448 | ||||||||
Total income tax provision | $ 6,080 | $ 4,715 | $ 4,583 | $ 3,850 | $ 2,390 | $ 4,190 | $ 3,846 | $ 4,077 | $ 19,228 | $ 14,503 | $ 17,407 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Stock-based compensation | $ 1,330 | $ 983 |
Federal benefit of state uncertain tax positions | 563 | 746 |
Accrued vacation | 618 | 521 |
Deferred rent | 112 | 95 |
Deferred payroll tax | 947 | 0 |
State net operating loss carryforwards | 53 | 228 |
Allowance for doubtful accounts | 552 | 311 |
Right of use lease liability | 2,851 | 2,840 |
Other | 873 | 465 |
Gross deferred tax assets | 7,899 | 6,189 |
Less: Valuation allowance | (4) | (335) |
Total deferred tax assets | 7,895 | 5,854 |
Deferred tax liabilities: | ||
Property and equipment | (1,830) | (2,027) |
Capitalized software development costs | (4,423) | (3,544) |
Right of use lease asset | (2,739) | (2,746) |
Total deferred tax liabilities | (8,992) | (8,317) |
Net deferred tax liability | $ (1,097) | $ (2,463) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Reduction of deferred tax asset valuation allowance | $ 0.3 | ||
Tax benefit (deficit) recognized within income tax expense | 0.4 | $ (0.1) | $ (0.3) |
Unrecognized tax benefits | $ 3.8 | $ 4.3 | |
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 |
INCOME TAXES - Statutory Federa
INCOME TAXES - Statutory Federal Income Tax Rate and Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes | 3.50% | 5.00% | 2.30% |
Federal and state tax credits | (2.10%) | (0.80%) | (2.30%) |
Tax deficit (benefit) from restricted stock vestings | (0.30%) | (0.10%) | 0.30% |
Uncertain tax positions (release) | (0.60%) | (5.20%) | 0.80% |
Nondeductible expenses | 0.70% | 2.20% | 0.80% |
Other, net | (0.30%) | 0.20% | 0.10% |
Effective federal and state income tax rate | 21.90% | 22.30% | 23.00% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 5,048 | $ 8,651 | $ 8,020 |
Additions for tax positions of prior years | 247 | 208 | 459 |
Additions for tax positions of current years | 368 | 393 | 1,248 |
Expiration of the statute of limitations | (1,202) | (3,182) | (1,024) |
Reductions for tax positions of prior years | (103) | (217) | (52) |
Settlements | 0 | (805) | 0 |
Unrecognized tax benefits, ending balance | $ 4,358 | $ 5,048 | $ 8,651 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 7,158 | $ 6,769 | $ 6,338 |
Cost of revenues | State enterprise cost of revenues, exclusive of depreciation & amortization | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,585 | 1,499 | 1,516 |
Cost of revenues | Software & services cost of revenues, exclusive of depreciation & amortization | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 162 | 101 | 151 |
Selling & administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,599 | 4,495 | 3,994 |
Enterprise technology & product support | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 812 | $ 674 | $ 677 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)hour$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Apr. 01, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding (in shares) | 0 | 0 | 0 | |||||
Share based compensation, shares authorized (in shares) | 15,825,223 | |||||||
Share based compensation, shares authorized for future grant (in shares) | 2,776,440 | |||||||
Intrinsic value of nonvested restricted stock awards expected to vest | $ | $ 22,800,000 | |||||||
Unrecognized compensation related to non-vested awards | $ | $ 10,700,000 | |||||||
Unrecognized compensation costs, weighted average period expected to be recognized | 2 years | |||||||
Proceeds from employee common stock purchases | $ | $ 1,509,000 | $ 1,443,000 | $ 1,382,000 | |||||
Defined Contribution 401(k) Profit Sharing Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Defined contribution plan, eligibility, hours of service | hour | 1,000 | |||||||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 5.00% | |||||||
Defined contribution plan, cost | $ | $ 3,300,000 | 2,900,000 | 2,700,000 | |||||
Employee stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, shares authorized (in shares) | 2,321,688 | |||||||
Share based compensation, shares authorized for future grant (in shares) | 787,353 | |||||||
Percentage of compensation eligible employees can use to purchase common stock, maximum | 15.00% | |||||||
Compensation amount that eligible employees can use to purchase common stock | $ | $ 25,000 | |||||||
Percentage of fair market value eligible employees can purchase common stock as defined, minimum | 85.00% | |||||||
Employee stock purchase plan, per share price (in usd per share) | $ / shares | $ 14.56 | $ 14.56 | $ 11.31 | $ 11.31 | $ 21.27 | |||
Employee stock purchase plan, shares purchased (in shares) | 103,628 | 127,600 | 122,152 | |||||
Proceeds from employee common stock purchases | $ | $ 1,500,000 | $ 1,400,000 | $ 1,400,000 | |||||
One-time termination benefits | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Severance costs | $ | 2,600,000 | |||||||
One time cash payment | $ | 1,500,000 | |||||||
Stock based compensation expense | $ | 1,100,000 | |||||||
Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 341,273 | |||||||
Forfeited shares (in shares) | 23,830 | |||||||
Vested (in shares) | 298,479 | |||||||
Share based compensation, fair value of restricted stock vested | $ | $ 5,100,000 | $ 5,500,000 | $ 5,100,000 | |||||
Granted (in usd per share) | $ / shares | $ 21.12 | $ 16.96 | $ 14.15 | |||||
Restricted stock | One-time termination benefits | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested (in shares) | 44,507 | |||||||
Performance shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 137,052 | |||||||
Share based compensation, annual award vesting period from date of grant | 3 years | 3 years | 3 years | |||||
Forfeited shares (in shares) | 87,241 | |||||||
Vested (in shares) | 0 | |||||||
Share based compensation, fair value of restricted stock vested | $ | $ 1,800,000 | |||||||
Granted (in usd per share) | $ / shares | $ 20.55 | $ 17.27 | $ 13.70 | |||||
Share-based compensation arrangement by share-based payment award vested (in shares) | 0 | 0 | ||||||
Performance shares | One-time termination benefits | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested (in shares) | 37,463 | |||||||
Service based awards | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 9,256 | |||||||
Share based compensation, award granted | $ | $ 200,000 | |||||||
Share based compensation, annual award vesting period from date of grant | 2 years | |||||||
Share based compensation, award annual installment vesting rate | 50.00% | |||||||
Performance Period 2018 to 2020 | Performance shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares earned in period (in shares) | 33,715 | |||||||
Share based compensation, dividend earned on shares subject to the awards (in shares) | 1,905 | |||||||
Forfeited shares (in shares) | 106,379 | |||||||
Performance Period 2017 to 2019 | Performance shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares earned in period (in shares) | 0 | |||||||
Share based compensation, dividend earned on shares subject to the awards (in shares) | 0 | |||||||
Forfeited shares (in shares) | 87,241 | |||||||
Performance Period 2016 to 2018 | Performance 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 | |||||||
Employees and executives | Service based awards | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 297,410 | |||||||
Share based compensation, award granted | $ | $ 6,300,000 | |||||||
Share based compensation, annual award vesting period from date of grant | 1 year | |||||||
Share based compensation, award annual installment vesting rate | 25.00% | |||||||
Non employee directors | Service based awards | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 34,607 | |||||||
Share based compensation, award granted | $ | $ 700,000 | |||||||
Share based compensation, annual award vesting period from date of grant | 1 year | |||||||
Executives | Performance based awards | Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, award shares granted in period (in shares) | 137,052 | |||||||
Share based compensation, award granted | $ | $ 2,800,000 | |||||||
Share based compensation, annual award vesting period from date of grant | 3 years | 3 years |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares | |||
Outstanding beginning of period (in shares) | 712,162 | ||
Granted (in shares) | 341,273 | ||
Vested (in shares) | (298,479) | ||
Canceled (in shares) | (23,830) | ||
Outstanding end of period (in shares) | 731,126 | 712,162 | |
Expected to vest (in shares) | 731,126 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding beginning of period (in usd per share) | $ 16.81 | ||
Granted (in usd per share) | 21.12 | $ 16.96 | $ 14.15 |
Vested (in usd per share) | 17.20 | ||
Canceled (in usd per share) | 17.53 | ||
Outstanding end of period (in usd per share) | 18.64 | $ 16.81 | |
Expected to vest (in usd per share) | $ 18.64 |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Summary of Performance-Based Restricted Stock Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares | |||
Outstanding beginning of period (in shares) | 338,470 | ||
Granted (in shares) | 137,052 | ||
Vested (in shares) | 0 | ||
Canceled (in shares) | (87,241) | ||
Outstanding end of period (in shares) | 388,281 | 338,470 | |
Expected to vest (in shares) | 149,801 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding beginning of period (in usd per share) | $ 17.01 | ||
Granted (in usd per share) | 20.55 | $ 17.27 | $ 13.70 |
Vested (in usd per share) | 22 | ||
Canceled (in usd per share) | 22 | ||
Outstanding end of period (in usd per share) | 17.14 | $ 17.01 | |
Expected to vest (in usd per share) | $ 18.48 |
STOCK-BASED COMPENSATION AND _7
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS - Assumptions Used to Estimate Grant Date Fair Value Using the Black-Scholes Model (Details) - Employee stock | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Offering Ending March 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.16% |
Expected dividend yield | 1.90% |
Expected life | 1 year |
Expected stock price volatility | 41.09% |
Weighted average fair value of ESPP rights (usd per share) | $ 6.37 |
Offering Ending March 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.41% |
Expected dividend yield | 1.93% |
Expected life | 1 year |
Expected stock price volatility | 29.94% |
Weighted average fair value of ESPP rights (usd per share) | $ 4.49 |
Offering Ending March 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.08% |
Expected dividend yield | 2.06% |
Expected life | 1 year |
Expected stock price volatility | 35.51% |
Weighted average fair value of ESPP rights (usd per share) | $ 3.75 |
REPORTABLE SEGMENTS AND RELAT_3
REPORTABLE SEGMENTS AND RELATED INFORMATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
REPORTABLE SEGMENTS AND RELAT_4
REPORTABLE SEGMENTS AND RELATED INFORMATION - Summary of Financial Information for Reportable and Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 141,156 | $ 134,590 | $ 93,589 | $ 91,119 | $ 87,074 | $ 90,385 | $ 91,566 | $ 85,180 | $ 460,454 | $ 354,205 | $ 344,900 |
Costs & expenses | 358,776 | 279,176 | 260,723 | ||||||||
Depreciation & amortization | 3,762 | 3,528 | 3,473 | 3,482 | 3,535 | 3,524 | 3,130 | 2,421 | 14,245 | 12,610 | 9,117 |
Total operating expenses | $ 23,924 | $ 29,806 | $ 18,379 | $ 15,324 | $ 11,744 | $ 17,971 | $ 17,729 | $ 14,975 | 87,433 | 62,419 | 75,060 |
State Enterprise | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 331,720 | 290,281 | 312,492 | ||||||||
Payments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,092 | 37,976 | 10,936 | ||||||||
TourHealth | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 61,634 | 0 | 0 | ||||||||
Operating Segments | State Enterprise | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 331,720 | 290,281 | 312,492 | ||||||||
Costs & expenses | 199,901 | 175,490 | 187,321 | ||||||||
Depreciation & amortization | 2,682 | 2,723 | 2,985 | ||||||||
Total operating expenses | 129,137 | 112,068 | 122,186 | ||||||||
Operating Segments | Payments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,092 | 37,976 | 10,936 | ||||||||
Costs & expenses | 32,314 | 30,922 | 8,536 | ||||||||
Depreciation & amortization | 6 | 3 | 0 | ||||||||
Total operating expenses | 8,772 | 7,051 | 2,400 | ||||||||
Operating Segments | TourHealth | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 61,634 | 0 | 0 | ||||||||
Costs & expenses | 51,606 | 0 | 0 | ||||||||
Depreciation & amortization | 0 | 0 | 0 | ||||||||
Total operating expenses | 10,028 | 0 | 0 | ||||||||
Operating Segments | All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 26,008 | 25,948 | 21,472 | ||||||||
Costs & expenses | 10,913 | 10,714 | 8,175 | ||||||||
Depreciation & amortization | 4,516 | 1,619 | 100 | ||||||||
Total operating expenses | 10,579 | 13,615 | 13,197 | ||||||||
Other Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Costs & expenses | 64,042 | 62,050 | 56,691 | ||||||||
Depreciation & amortization | 7,041 | 8,265 | 6,032 | ||||||||
Total operating expenses | $ (71,083) | $ (70,315) | $ (62,723) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Concentration Risk | Motor Vehicle Driver History Record Retrieval | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 26.00% | 29.00% |
Product Concentration Risk | Motor Vehicle Registrations | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 11.00% | 14.00% |
Product Concentration Risk | TourHealth COVID-19 Services | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | ||
Customer Concentration Risk | Colorado | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | Texas | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | ||
Customer Concentration Risk | LexisNexis Risk Solutions | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 15.00% | 19.00% |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 141,156 | $ 134,590 | $ 93,589 | $ 91,119 | $ 87,074 | $ 90,385 | $ 91,566 | $ 85,180 | $ 460,454 | $ 354,205 | $ 344,900 |
Operating expenses | |||||||||||
Selling & administrative | 9,354 | 8,817 | 8,316 | 8,064 | 8,727 | 8,153 | 8,356 | 9,964 | 34,551 | 35,200 | 32,747 |
Enterprise technology & product support | 7,694 | 7,342 | 7,201 | 7,254 | 6,917 | 6,743 | 6,745 | 6,445 | |||
Depreciation & amortization | 3,762 | 3,528 | 3,473 | 3,482 | 3,535 | 3,524 | 3,130 | 2,421 | 14,245 | 12,610 | 9,117 |
Total operating expenses | 117,232 | 104,784 | 75,210 | 75,795 | 75,330 | 72,414 | 73,837 | 70,205 | 373,021 | 291,786 | 269,840 |
Total operating expenses | 23,924 | 29,806 | 18,379 | 15,324 | 11,744 | 17,971 | 17,729 | 14,975 | 87,433 | 62,419 | 75,060 |
Interest income | 0 | 0 | 0 | 389 | 604 | 729 | 577 | 604 | 389 | 2,514 | 616 |
Income before income taxes | 23,924 | 29,806 | 18,379 | 15,713 | 12,348 | 18,700 | 18,306 | 15,579 | 87,822 | 64,933 | 75,676 |
Income tax provision | 6,080 | 4,715 | 4,583 | 3,850 | 2,390 | 4,190 | 3,846 | 4,077 | 19,228 | 14,503 | 17,407 |
Net income | $ 17,844 | $ 25,091 | $ 13,796 | $ 11,863 | $ 9,958 | $ 14,510 | $ 14,460 | $ 11,502 | $ 68,594 | $ 50,430 | $ 58,269 |
Basic net income per share (in usd per share) | $ 0.26 | $ 0.37 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.21 | $ 0.21 | $ 0.17 | $ 1.01 | $ 0.75 | $ 0.87 |
Diluted net income per share (in usd per share) | $ 0.26 | $ 0.37 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.21 | $ 0.21 | $ 0.17 | $ 1.01 | $ 0.75 | $ 0.87 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 67,030 | 67,025 | 66,999 | 66,987 | 66,967 | 66,960 | 66,940 | 66,670 | 67,010 | 66,884 | 66,499 |
Diluted (in shares) | 67,166 | 67,025 | 66,999 | 66,987 | 66,967 | 66,960 | 66,940 | 66,670 | 67,117 | 66,884 | 66,560 |
State enterprise revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 88,030 | $ 91,475 | $ 77,804 | $ 74,411 | $ 72,300 | $ 73,257 | $ 74,871 | $ 69,853 | $ 331,720 | $ 290,281 | $ 312,492 |
Operating expenses | |||||||||||
Cost of Revenue | 53,947 | 53,807 | 45,876 | 46,271 | 44,610 | 43,821 | 45,081 | 41,978 | 199,901 | 175,490 | 187,321 |
Software & services revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 53,126 | 43,115 | 15,785 | 16,708 | 14,774 | 17,128 | 16,695 | 15,327 | 128,734 | 63,924 | 32,408 |
Operating expenses | |||||||||||
Cost of Revenue | $ 42,475 | $ 31,290 | $ 10,344 | $ 10,724 | $ 11,541 | $ 10,173 | $ 10,525 | $ 9,397 | $ 94,833 | $ 41,636 | $ 16,711 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event - Merger Agreement $ / shares in Units, $ in Millions | Feb. 09, 2021USD ($)extension$ / sharesshares |
Subsequent Event [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 34 |
Restricted stock conversion ratio, number of shares (in shares) | shares | 1 |
Restricted stock conversion ratio, period | 10 days |
Number of extensions | extension | 1 |
Extension term | 3 months |
Fee required upon termination | $ | $ 55 |
Uncategorized Items - egov-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |