Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 12, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'EGOV | ' | ' |
Entity Registrant Name | 'NIC INC | ' | ' |
Entity Central Index Key | '0001065332 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 65,035,010 | ' |
Entity Public Float | ' | ' | $991,897,097 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash | $74,245,467 | $62,358,266 |
Cash restricted for payment of dividend | 22,982,447 | ' |
Trade accounts receivable, net (Note 2) | 52,818,352 | 55,261,023 |
Deferred income taxes, net | 1,037,888 | 886,969 |
Prepaid expenses & other current assets | 11,568,395 | 9,340,344 |
Total current assets | 162,652,549 | 127,846,602 |
Property and equipment, net | 15,167,051 | 16,024,724 |
Intangible assets, net | 1,864,297 | 1,015,846 |
Other assets | 289,968 | 252,765 |
Total assets | 179,973,865 | 145,139,937 |
Current liabilities: | ' | ' |
Accounts payable | 39,111,916 | 43,663,847 |
Accrued expenses | 20,822,443 | 18,948,077 |
Dividend payable | 22,982,447 | ' |
Other current liabilities | 347,743 | 207,577 |
Total current liabilities | 83,264,549 | 62,819,501 |
Deferred income taxes, net | 2,431,568 | 2,050,230 |
Other long-term liabilities | 2,341,461 | 1,345,836 |
Total liabilities | 88,037,578 | 66,215,567 |
Commitments and contingencies (Notes 2, 3, 6, 7 and 9) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.0001 par, 200,000,000 shares authorized, 64,992,587 and 64,628,105 shares issued and outstanding | 6,500 | 6,463 |
Additional paid-in capital | 88,396,700 | 84,308,249 |
Retained earnings (accumulated deficit) | 3,533,087 | -5,390,342 |
Total stockholders' equity | 91,936,287 | 78,924,370 |
Total liabilities and stockholders' equity | $179,973,865 | $145,139,937 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 64,992,587 | 64,628,105 |
Common stock, shares outstanding | 64,992,587 | 64,628,105 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Portal revenues | $57,325,900 | $57,721,350 | $62,093,296 | $58,042,459 | $53,462,690 | $50,197,700 | $49,042,468 | $45,711,804 | $235,183,005 | $198,414,662 | $170,276,434 | ||
Software & services revenues | 3,460,925 | 3,608,409 | 3,844,035 | 3,182,291 | 2,778,391 | 3,008,474 | 2,939,332 | 3,031,317 | 14,095,660 | 11,757,514 | 10,622,737 | ||
Total revenues | 60,786,825 | 61,329,759 | 65,937,331 | 61,224,750 | 56,241,081 | 53,206,174 | 51,981,800 | 48,743,121 | 249,278,665 | 210,172,176 | 180,899,171 | ||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cost of portal revenues, exclusive of depreciation & amortization (Note 2) | 35,638,094 | 39,755,133 | 34,899,128 | 32,761,919 | 32,473,629 | 31,794,232 | 30,549,948 | 28,750,896 | 143,054,274 | 123,568,705 | 104,729,936 | ||
Cost of software & services revenues, exclusive of depreciation & amortization | 1,136,347 | 928,301 | 1,188,765 | 1,103,195 | 996,262 | 1,079,460 | 1,008,078 | 957,423 | 4,356,608 | 4,041,223 | 4,030,917 | ||
Selling & administrative | 10,870,263 | 10,387,621 | 10,057,707 | 9,609,051 | 8,315,285 | 8,218,715 | 8,382,643 | 7,935,303 | 40,924,642 | 32,851,946 | 28,731,758 | ||
Depreciation & amortization | 2,112,435 | 2,144,842 | 2,049,189 | 2,026,623 | 2,069,118 | 1,657,607 | 1,400,470 | 1,391,337 | 8,333,089 | 6,518,532 | 4,898,488 | ||
Total operating expenses | 49,757,139 | 53,215,897 | 48,194,789 | 45,500,788 | 43,854,294 | 42,750,014 | 41,341,139 | 39,034,959 | 196,668,613 | 166,980,406 | 142,391,099 | ||
Operating income | 11,029,686 | 8,113,862 | 17,742,542 | 15,723,962 | 12,386,787 | 10,456,160 | 10,640,661 | 9,708,162 | 52,610,052 | 43,191,770 | 38,508,072 | ||
Other expense, net | -34,781 | 4,362 | -1,649 | -19,233 | -15,321 | ' | ' | -890 | -51,301 | -16,211 | -34,820 | ||
Income before income taxes | 10,994,905 | 8,118,224 | 17,740,893 | 15,704,729 | 12,371,466 | 10,456,160 | 10,640,661 | 9,707,272 | 52,558,751 | 43,175,559 | 38,473,252 | ||
Income tax provision | 4,814,225 | [1] | 3,025,500 | 6,933,086 | 5,747,849 | 3,748,853 | [2] | 4,461,320 | 4,546,917 | 4,079,721 | 20,520,660 | 16,836,811 | 15,530,770 |
Net income | $6,180,680 | $5,092,724 | $10,807,807 | $9,956,880 | $8,622,613 | $5,994,840 | $6,093,744 | $5,627,551 | $32,038,091 | $26,338,748 | $22,942,482 | ||
Basic net income per share (Note 2) | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 | ||
Diluted net income per share (Note 2) | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 | ||
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic | 64,991,597 | 64,961,138 | 64,889,767 | 64,709,515 | 64,627,150 | 64,585,659 | 64,488,837 | 64,296,996 | 64,888,978 | 64,500,244 | 64,017,813 | ||
Diluted | 65,060,718 | 64,968,858 | 64,889,767 | 64,709,515 | 64,696,246 | 64,603,817 | 64,488,837 | 64,296,996 | 64,954,366 | 64,564,664 | 64,156,669 | ||
[1] | The Company's higher effective tax rate in the fourth quarter of 2013 (44%) was driven primarily by changes in state taxes, including true-ups upon the filing of state returns in the fourth quarter of 2013, which lowered earnings per share by approximately $0.01. | ||||||||||||
[2] | The Company's lower effective tax rate (30%) in the fourth quarter of 2012 was due to several factors, including the favorable outcome of an IRS examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes, which increased earnings per share between $0.01 and $0.02. |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning Balance at Dec. 31, 2010 | $53,269,709 | $6,371 | $107,934,910 | ($54,671,572) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 63,705,851 | ' | ' |
Net income | 22,942,482 | ' | ' | 22,942,482 |
Dividends declared | -16,230,966 | ' | -16,230,966 | ' |
Dividend equivalents on performance-based restricted stock awards | -109,610 | ' | -109,610 | ' |
Restricted stock vestings (in shares) | ' | 532,870 | ' | ' |
Restricted stock vestings | 119,957 | 53 | 119,904 | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | ' | -164,213 | ' | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | -1,921,580 | -16 | -1,921,564 | ' |
Stock-based compensation | 4,509,727 | ' | 4,509,727 | ' |
Tax deductions relating to stock-based compensation | 1,509,039 | ' | 1,509,039 | ' |
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards | 336,404 | ' | 336,404 | ' |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 103,593 | ' | ' |
Issuance of common stock under employee stock purchase plan | 651,600 | 10 | 651,590 | ' |
Ending Balance at Dec. 31, 2011 | 65,076,762 | 6,418 | 96,799,434 | -31,729,090 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 64,178,101 | ' | ' |
Net income | 26,338,748 | ' | ' | 26,338,748 |
Dividends declared | -16,337,681 | ' | -16,337,681 | ' |
Dividend equivalents on performance-based restricted stock awards | -97,070 | ' | -97,070 | ' |
Restricted stock vestings (in shares) | ' | 539,936 | ' | ' |
Restricted stock vestings | 203,659 | 54 | 203,605 | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | ' | -167,977 | ' | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | -2,113,156 | -17 | -2,113,139 | ' |
Stock-based compensation | 3,802,572 | ' | 3,802,572 | ' |
Tax deductions relating to stock-based compensation | 1,351,115 | ' | 1,351,115 | ' |
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards | -106,589 | ' | -106,589 | ' |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 78,045 | ' | ' |
Issuance of common stock under employee stock purchase plan | 806,010 | 8 | 806,002 | ' |
Ending Balance at Dec. 31, 2012 | 78,924,370 | 6,463 | 84,308,249 | -5,390,342 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 64,628,105 | ' | ' |
Net income | 32,038,091 | ' | ' | 32,038,091 |
Dividends declared | -22,982,447 | ' | ' | -22,982,447 |
Dividend equivalents on performance-based restricted stock awards | -132,215 | ' | ' | -132,215 |
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards | 49,909 | ' | 49,909 | ' |
Restricted stock vestings (in shares) | ' | 401,794 | ' | ' |
Restricted stock vestings | 82,620 | 40 | 82,580 | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | ' | -124,890 | ' | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | -2,276,163 | -12 | -2,276,151 | ' |
Stock-based compensation | 4,025,960 | ' | 4,025,960 | ' |
Tax deductions relating to stock-based compensation | 1,302,005 | ' | 1,302,005 | ' |
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards | -314 | ' | -314 | ' |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 87,578 | ' | ' |
Issuance of common stock under employee stock purchase plan | 904,471 | 9 | 904,462 | ' |
Ending Balance at Dec. 31, 2013 | $91,936,287 | $6,500 | $88,396,700 | $3,533,087 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 64,992,587 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities: | ' | ' | ' |
Net income | $32,038,091 | $26,338,748 | $22,942,482 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation & amortization | 8,333,089 | 6,518,532 | 4,898,488 |
Provision for losses on accounts receivable (Note 2) | 5,229,277 | 259,630 | 313,378 |
Stock-based compensation expense | 4,025,960 | 3,802,572 | 4,509,727 |
Deferred income taxes | -1,069,988 | 734,208 | 788,258 |
Loss on disposal of property and equipment | 51,301 | 16,219 | 37,857 |
Changes in operating assets and liabilities: | ' | ' | ' |
(Increase) in trade accounts receivable, net | -2,786,606 | -6,214,772 | -7,560,160 |
(Increase) decrease in prepaid expenses & other current assets | -927,644 | -1,918,230 | 1,308,384 |
(Increase) in other assets | -37,203 | -8,992 | -358 |
Increase (decrease) in accounts payable | -4,502,022 | -1,374,212 | 3,439,367 |
Increase (decrease) in accrued expenses | -586,798 | 397,072 | -92,038 |
Increase (decrease) in other current liabilities | 222,786 | 101,795 | -265,026 |
Increase (decrease) in other long-term liabilities | 863,096 | -262,995 | 282,254 |
Net cash provided by operating activities | 40,853,339 | 28,389,575 | 30,602,613 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -6,717,034 | -12,776,316 | -6,136,666 |
Proceeds from sale of property and equipment | 16,153 | ' | 7,711 |
Capitalized internal use software development costs | -1,489,286 | -713,501 | -450,770 |
Net cash used in investing activities | -8,190,167 | -13,489,817 | -6,579,725 |
Cash flows from financing activities: | ' | ' | ' |
Cash dividends on common stock | ' | -16,337,681 | ' |
Cash restricted for payment of dividend | -22,982,447 | ' | -16,230,966 |
Proceeds from employee common stock purchases | 904,471 | 806,010 | 651,600 |
Tax deductions related to stock-based compensation | 1,302,005 | 1,351,115 | 1,509,039 |
Net cash used in financing activities | -20,775,971 | -14,180,556 | -14,070,327 |
Net increase in cash and cash equivalents | 11,887,201 | 719,202 | 9,952,561 |
Cash and cash equivalents, beginning of period | 62,358,266 | 61,639,064 | 51,686,503 |
Cash and cash equivalents, end of period | 74,245,467 | 62,358,266 | 61,639,064 |
Non-cash investing activities: | ' | ' | ' |
Capital expenditures accrued but not yet paid | 185,001 | 144,559 | ' |
Cash payments: | ' | ' | ' |
Income taxes paid | 15,939,214 | 14,107,555 | 11,726,661 |
Cash dividends on common stock previously restricted for payment of dividend | ' | $16,230,966 | ' |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2013 | |
The Company | ' |
1. THE COMPANY | |
NIC Inc. (the “Company” or “NIC”) is a leading provider of eGovernment services that helps governments use the Internet to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software & services businesses. | |
In its primary outsourced portal businesses, the Company generally designs, builds, and operates Internet-based portals 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, including mobile devices. These portals consist of websites and applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts (see Note 3), NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC’s self-funded business model allows the Company to generate revenues by sharing in the fees the Company collects from eGovernment transactions. The Company’s government partners benefit through reducing their financial and technology risks, increasing their operational efficiencies, and gaining a centralized, customer-focused presence on the Internet, while businesses and citizens receive a faster, more convenient, and more cost-effective means to interact with governments. The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the outsourced government portals. | |
The Company’s software & services businesses primarily include its subsidiaries that provide software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies (see Note 3). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Basis of presentation | |||||||||||||
The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating enterprise-wide outsourced portals 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 software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative, and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. For the year ended December 31, 2013, cost of portal revenues also includes a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) to write-off accounts receivable due from the Commonwealth of Pennsylvania for eGovernment services provided from January 1, 2013 through June 30, 2013, as further discussed below. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative costs consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company’s software & services businesses, including information systems and office rent. Selling & administrative costs also consist of stock-based compensation and corporate-level expenses for market development and public relations. In addition, selling & administrative costs include legal fees and other third-party costs, net of directors’ and officers’ liability insurance reimbursements received, incurred in connection with the previously disclosed SEC matter, which concluded in December 2013 (see Note 7). | |||||||||||||
Certain income statement amounts for the year ended December 31, 2012 have been reclassified, resulting in a reduction in both portal revenues and cost of portal revenues by approximately $1.0 million. The reclassification had no effect on prior year operating income, net income or earnings per share. Certain other prior year amounts have been reclassified to conform to the 2013 presentation. | |||||||||||||
Basis of consolidation | |||||||||||||
The accompanying consolidated financial statements consolidate the Company together with all of its direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||
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. | |||||||||||||
Cash restricted for payment of dividend | |||||||||||||
Restricted cash represents cash which is restricted for use by NIC. On October 28, 2013, the Company’s Board of Directors declared a special cash dividend of $0.35 per share, payable to stockholders of record as of November 8, 2013. The dividend, totaling approximately $23.0 million, was paid on January 2, 2014. Cash used to pay the special dividend was classified as restricted at December 31, 2013. | |||||||||||||
Trade accounts receivable | |||||||||||||
The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. | |||||||||||||
As previously disclosed in prior filings with the Securities and Exchange Commission (“SEC”), the Company had not collected amounts due from the Commonwealth of Pennsylvania (the “Commonwealth”) totaling approximately $5.1 million for eGovernment services provided by the Company’s subsidiary, Pennsylvania Interactive, LLC, from January 1, 2013 to June 30, 2013. At June 30, 2013, the Company believed these amounts were fully collectible based upon legal review and preliminary discussions with Commonwealth administration officials. Due to the preliminary nature of those discussions, the Company was unable to estimate the amount or range of amounts, if any, that it would not be able to collect from the Commonwealth, as of June 30, 2013. On September 9, 2013, the Company filed a Form 8-K with the SEC disclosing that, due to certain developments, including further discussions with Commonwealth officials, on September 6, 2013, the Company elected not to pursue collection of outstanding accounts receivable from the Commonwealth and recorded a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) in the third quarter of 2013 to write-off amounts due from the Commonwealth through June 30, 2013. The charge is included in cost of portal revenues of the Company’s consolidated statements of income for the year ended December 31, 2013. The Company continued to provide eGovernment services under the contract with the Commonwealth, but did not recognize revenues under the contract subsequent to June 30, 2013 until the contract became self-funded in October 2013. | |||||||||||||
The Company’s allowance for doubtful accounts at both December 31, 2013 and 2012 was $0.6 million. | |||||||||||||
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 warrant such a review. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flows from the asset is separately identifiable and 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 flows 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 material impairment losses on property and equipment during the periods presented. | |||||||||||||
Software development costs and intangible assets | |||||||||||||
The Company expenses as incurred all employee costs to start up, operate, and maintain government portals on an outsourced basis as costs of performance under the contracts because, after the completion of a defined contract term, the government entity with which the Company contracts typically receives a perpetual, royalty-free license to the applications the Company developed, excluding applications provided on a SaaS basis. Such costs are included in cost of portal revenues in the consolidated statements of income. | |||||||||||||
The Company accounts for the costs of developing internal use computer software in accordance with authoritative accounting guidance for internal use computer software, whereby certain costs of developing internal use computer software are capitalized and amortized over their estimated useful life. For internal use computer software, the estimated economic life is typically 36 months from the date the software is placed in production. At December 31, 2013 and 2012, such costs are included in intangible assets in the consolidated balance sheets. | |||||||||||||
The Company carries intangible assets at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over estimated economic lives of the respective assets. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any impairment losses on intangible assets during the periods presented. | |||||||||||||
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 employee compensation and benefits (including bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, payment processing fees, and miscellaneous other accruals. | |||||||||||||
Revenue recognition | |||||||||||||
Portal revenues | |||||||||||||
The Company recognizes revenue from providing enterprise-wide outsourced government portal services (primarily transaction-based information access fees and filing fees) net of the transaction fees due to the government when the services are provided. The fees that the Company must remit to state agencies for data access and other statutory fees are accrued as accounts payable at the time services are provided. The Company must remit a certain amount or percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. | |||||||||||||
Revenue from service contracts to provide portal consulting, application development, and management services to governments is recognized as the services are provided at rates provided for in the contract. | |||||||||||||
Amounts received prior to providing services are recorded as unearned revenue. At each balance sheet date, the Company makes a determination as to the portion of unearned revenue 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. Unearned revenues at December 31, 2013 and 2012 were approximately $0.3 million and $0.2 million, respectively, and were recorded in other current liabilities in the consolidated balance sheets. | |||||||||||||
Software & services revenues | |||||||||||||
The Company’s software & services revenues primarily include revenues from subsidiaries that provide software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. NIC Technologies currently earns a significant portion of its revenues from its contract with the U.S. Department of Transportation, Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a self-funded, transaction-based business model. NIC Technologies recognizes revenue from its contract with the FMCSA (primarily transaction-based information access fees) when the services are provided. NIC Technologies also earns a portion of its revenues from fixed fee and time and materials application development and outsourced maintenance contracts with other government agencies and recognizes revenues as the services are provided. Its contract with the state of Michigan contains a general fiscal funding clause. The Company recognizes revenue under this contract if the probability of cancellation is determined to be a remote contingency. | |||||||||||||
Stock-based compensation | |||||||||||||
The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award, and recognizes an expense over the employee’s requisite service period (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. See Note 10 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 greater than 50% likely to be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. | |||||||||||||
Fair value of financial instruments | |||||||||||||
The carrying values of the Company’s accounts receivable and accounts payable approximate fair value. | |||||||||||||
Comprehensive income | |||||||||||||
The Company has no material components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is approximately the same as its net income for all periods presented. | |||||||||||||
Earnings per share | |||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. 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. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered participating securities. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled approximately 0.7 million at December 31, 2013, 2012, and 2011. Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 32,038,091 | $ | 26,338,748 | $ | 22,942,482 | |||||||
Less: Income allocated to participating securities | (325,182 | ) | (299,518 | ) | (294,022 | ) | |||||||
Net income available to common stockholders | $ | 31,712,909 | $ | 26,039,230 | $ | 22,648,460 | |||||||
Denominator: | |||||||||||||
Weighted average shares - basic | 64,888,978 | 64,500,244 | 64,017,813 | ||||||||||
Performance-based restricted stock awards | 65,388 | 64,420 | 138,856 | ||||||||||
Weighted average shares - diluted | 64,954,366 | 64,564,664 | 64,156,669 | ||||||||||
Basic net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 | |||||||
Diluted net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 | |||||||
Concentration of credit risk | |||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At December 31, 2013, the amount of cash covered by FDIC deposit insurance was approximately $10.1 million, and approximately $64.1 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable. | |||||||||||||
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. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers. See Note 11. | |||||||||||||
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. | |||||||||||||
Recent accounting pronouncements | |||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding the financial statement presentation of an unrecognized tax benefit (“UTB”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance requires that an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when certain conditions exist. The new guidance is effective for the Company beginning January 1, 2014. The guidance must be applied to all UTBs that exist as of the effective date and may be applied retrospectively to prior reporting periods presented. The Company has evaluated the requirements of this new guidance and does not believe there will be a material impact on its consolidated financial statements. |
Outsourced_Government_Contract
Outsourced Government Contracts | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Outsourced Government Contracts | ' | |||
3. OUTSOURCED GOVERNMENT CONTRACTS | ||||
Outsourced Portal Contracts | ||||
The Company’s outsourced government portal contracts generally have an initial multi-year term with provisions for renewals for various periods at the option of the government. The Company’s primary business obligation under these contracts is generally to design, build, and operate Internet-based portals on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to complete government-based transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the electronic 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. Any changes made to the amount or percentage of fees retained by NIC, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract to NIC. | ||||
The Company is typically responsible for funding the up-front investment and ongoing operations and maintenance costs of the government portals, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that the Company has developed and standardized centrally and that are utilized by the Company’s portal businesses, are being provided to an increasing number of government partners on a software-as-a-service, or “SaaS,” basis, and thus would not be included in any royalty-free license. If the Company’s contract were not to be renewed after a defined term or if our contract was terminated by our government partner for cause, the government agency would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for services provided by the Company on a SaaS basis, which would be available to the partners on a fee-for-service basis. | ||||
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 we breach a material contractual obligation and fail to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in our contract. In addition, 15 contracts under which the Company provides enterprise-wide outsourced state portal services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented 57% of the Company’s total consolidated revenues for the year ended December 31, 2013. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay a fee to the Company in order to continue to use the Company’s software in its portal. In addition, the loss of one or more of the Company’s larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Montana, New Jersey, Pennsylvania, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce the Company’s revenues and profitability. See the discussion below under “Expiring Contracts” regarding the expiration of the Company’s contracts with the Commonwealth of Virginia and the state of Arizona. | ||||
At December 31, 2013, the Company was bound by performance bond commitments totaling approximately $6.1 million on certain outsourced portal contracts. Under a typical portal 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. The Company has never had any defaults resulting in draws on performance bonds. See also Note 6. | ||||
The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of December 31, 2013: | ||||
Year Services | Contract Expiration Date | |||
NIC Portal Entity | Portal Website (State) | Commenced | (Renewal Options Through) | |
Wisconsin Interactive Network, LLC | www.wisconsin.gov (Wisconsin) | 2013 | 5/13/2018 (5/13/2023) | |
Pennsylvania Interactive, LLC* | www.pa.gov (Pennsylvania) | 2012 | 11/30/2017 (11/30/2022) | |
NICUSA, OR Division | www.oregon.gov (Oregon) | 2011 | 11/22/21 | |
NICUSA, MD Division | www.maryland.gov (Maryland) | 2011 | 8/10/2016 (8/10/2019) | |
Delaware Interactive, LLC | www.delaware.gov (Delaware) | 2011 | 9/25/2014 (9/25/2017) | |
Mississippi Interactive, LLC | www.ms.gov (Mississippi) | 2011 | 12/31/2015 (12/31/2021) | |
New Jersey Interactive, LLC | www.nj.gov (New Jersey) | 2009 | 6/30/14 | |
Texas NICUSA, LLC | www.Texas.gov (Texas) | 2009 | 8/31/2016 (8/31/2018) | |
West Virginia Interactive, LLC | www.WV.gov (West Virginia) | 2007 | 6/30/14 | |
NICUSA, AZ Division | www.AZ.gov (Arizona) | 2007 | In transition period – 3/26/2014 | |
(6/26/2014) | ||||
Vermont Information Consortium, LLC | www.Vermont.gov (Vermont) | 2006 | 6/8/2016 (6/8/2019) | |
Colorado Interactive, LLC | www.Colorado.gov (Colorado) | 2005 | 5/18/14 | |
South Carolina Interactive, LLC | www.SC.gov (South Carolina) | 2005 | 7/15/14 | |
Kentucky Interactive, LLC | www.Kentucky.gov (Kentucky) | 2003 | 8/31/2014 (8/31/2015) | |
Alabama Interactive, LLC | www.Alabama.gov (Alabama) | 2002 | 2/28/2015 (2/28/2017) | |
Rhode Island Interactive, LLC | www.RI.gov (Rhode Island) | 2001 | 2/28/14 | |
Oklahoma Interactive, LLC | www.OK.gov (Oklahoma) | 2001 | 12/31/14 | |
Montana Interactive, LLC | www.MT.gov (Montana) | 2001 | 12/31/2015 (12/31/2020) | |
NICUSA, TN Division | www.TN.gov (Tennessee) | 2000 | 9/30/2014 (3/30/2016) | |
Hawaii Information Consortium, LLC | www.eHawaii.gov (Hawaii) | 2000 | 1/3/2016 (unlimited 3-year | |
renewal options) | ||||
Idaho Information Consortium, LLC | www.Idaho.gov (Idaho) | 2000 | 6/30/15 | |
Utah Interactive, LLC | www.Utah.gov (Utah) | 1999 | 6/5/2016 (6/5/2019) | |
Maine Information Network, LLC | www.Maine.gov (Maine) | 1999 | 7/1/2016 (3/14/2018) | |
Arkansas Information Consortium, LLC | www.Arkansas.gov (Arkansas) | 1997 | 6/30/18 | |
Iowa Interactive, LLC | www.Iowa.gov (Iowa) | 1997 | 3/31/14 | |
Indiana Interactive, LLC | www.IN.gov (Indiana) | 1995 | 7/1/14 | |
Nebraska Interactive, LLC | www.Nebraska.gov (Nebraska) | 1995 | 1/31/16 | |
Kansas Information Consortium, Inc. | www.Kansas.gov (Kansas) | 1992 | 12/31/2014 (12/31/2017) | |
*See Note 2 for discussion of the Pennsylvania contract. | ||||
During the first quarter of 2013, the Company received a one-year contract extension from the state of Kansas, a two-year contract extension from the state of Nebraska and a four-month contract extension from the state of Vermont. Additionally, the Company received a five-month contract extension from the state of Rhode Island. | ||||
During the second quarter of 2013, the Company was awarded a five-year contract by the state of Wisconsin to manage its government portal, which includes an option for the government to extend the contract up to an additional five years. In addition, the Company was awarded a new three-year contract from the state of Vermont, which includes an option for the government to extend the contract for one additional three-year period. The Company also received a two-year contract extension from the state of Idaho, one-year contract extensions from the Commonwealth of Kentucky and the state of New Jersey, and six-month contract extensions from the state of Iowa and the state of Arizona with respect to the expiring Arizona portal contract. | ||||
During the third quarter of 2013, the Company received a two-year contract extension from the state of Maine. In addition, the Company received a six-month contract extension from the state of West Virginia and a three-month contract extension from the state of Iowa. | ||||
During the fourth quarter of 2013, the Company received a one-year contract extension from the state of Oklahoma, a six-month contract extension from the state of West Virginia and a three-month contract extension from the state of Arizona with respect to the expiring Arizona portal contract. | ||||
During the first quarter of 2014, the Company was awarded a three-year contract with the state of Connecticut to manage its government portal, which includes renewal options for the government to extend the contract up to an additional three years. In addition, the Company received a three-month contract extension from the state of Iowa and a two-month contract extension from the state of Rhode Island. | ||||
Other Outsourced State Contracts | ||||
The Company’s subsidiary, New Mexico Interactive, LLC, has a contract to manage eGovernment services for the New Mexico Motor Vehicle Division (“MVD”) and its parent, the New Mexico Taxation and Revenue Department. During the second quarter of 2013, the Company received a one-year contract extension from the MVD to manage the state’s driver history database through June 30, 2014. | ||||
During the second quarter of 2013, the Company’s subsidiary, Virginia Interactive, signed an agreement with the Department of Game and Inland Fisheries to provide eGovernment services from September 1, 2013 through February 28, 2015, which includes an option for the agency to extend the contract for one additional six-month period through August 31, 2015. During the third quarter of 2013, VI signed an agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide eGovernment services from September 1, 2013 through August 31, 2014, which includes an option for the agency to extend the contract for one additional 12-month period through August 31, 2015. | ||||
Outsourced Federal Contracts | ||||
NIC Technologies has a contract with the FMCSA to develop and manage the FMCSA’s PSP for motor carriers nationwide, using the self-funded, transaction-based business model. During the first quarter of 2014, the FMCSA exercised a one-year renewal option for the PSP contract, extending its term through February 16, 2015. As previously disclosed, the Company’s contract with the Federal Election Commission (“FEC”) to design and develop online federal campaign expenditure and ethics compliance systems expired on June 30, 2013. For the year ended December 31, 2013, revenues from the FEC contract accounted for less than 1% of the Company’s total consolidated revenues. | ||||
Any renewal of the contract with the FMCSA beyond the initial term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce the Company’s revenues and profitability. In addition, the Company has limited control over the level of fees it is permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by the Company, or to the amounts charged for the services offered, could materially affect the profitability of this contract. | ||||
Expiring Contracts | ||||
As of December 31, 2013, there were 15 contracts under which the Company provides enterprise-wide outsourced portal services or software development and services that have expiration dates within the 12-month period following December 31, 2013. Collectively, revenues generated from these contracts represented 38% of the Company’s total consolidated revenues for the year ended December 31, 2013. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for the services the Company provides on a SaaS basis, which would be available to the government agency on a fee-for-service basis. | ||||
The contract under which the Company’s subsidiary, Virginia Interactive, provided outsourced portal services to agencies of the Commonwealth of Virginia expired on August 31, 2012. As more fully disclosed in a Form 8-K filed by the Company with the SEC on April 18, 2012, VI chose not to agree to terms mandated by the Commonwealth of Virginia for a new contract. VI provided transition services as required by the contract through August 31, 2013. The costs incurred in transitioning out of VI’s contract with the Commonwealth of Virginia, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the year ended December 31, 2013, revenues from the legacy Virginia portal contract accounted for approximately 2% of the Company’s total consolidated revenues. The Company continues to provide eGovernment services to two agencies of the Commonwealth of Virginia, as further discussed above under Other Outsourced State Contracts. | ||||
During the first quarter of 2013, the Company’s subsidiary, NICUSA, Inc. (“NICUSA”), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. The contract under which NICUSA provided outsourced portal services to agencies of the state of Arizona expired on June 26, 2013. However, during the second quarter of 2013, the Company received a six-month contract extension from the state of Arizona to provide transition services through December 26, 2013, which included options for the government to extend the contract for two additional three-month periods. During the fourth quarter of 2013, the state of Arizona exercised a three-month renewal option, extending its contract term through March 26, 2014.The Company has evaluated the costs which may be incurred in transitioning out of NICUSA’s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, which are not expected to have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the year ended December 31, 2013, revenues from the Arizona portal contract accounted for approximately 1% of the Company’s total consolidated revenues. |
Intangible_Assets_Net
Intangible Assets, Net | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||||||||||
4. INTANGIBLE ASSETS, NET | |||||||||||||||||||||||||
Intangible assets, net consisted of the following at December 31: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Internal use capitalized | |||||||||||||||||||||||||
software | $ | 5,187,674 | $ | (3,323,377 | ) | $ | 1,864,297 | $ | 3,698,387 | $ | (2,682,541 | ) | $ | 1,015,846 | |||||||||||
Amortization expense for internal use capitalized software totaling approximately $0.6 million for each of the years ended December 31, 2013, 2012, and 2011 is included in depreciation & amortization in the consolidated statements of income. The total estimated intangible asset amortization expense in future years related to assets that have been released into production is as follows: | |||||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||||
2014 | $ | 764,378 | |||||||||||||||||||||||
2015 | 582,831 | ||||||||||||||||||||||||
2016 | 266,053 | ||||||||||||||||||||||||
$ | 1,613,262 |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, Net | ' | ||||||||
5. PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment, net consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 26,917,914 | $ | 23,745,101 | |||||
Purchased software | 9,782,079 | 8,706,287 | |||||||
Furniture and fixtures | 4,410,355 | 3,916,476 | |||||||
Leasehold improvements | 1,170,354 | 1,096,717 | |||||||
42,280,702 | 37,464,581 | ||||||||
Less accumulated depreciation | (27,113,651 | ) | (21,439,857 | ) | |||||
Property and equipment, net | $ | 15,167,051 | $ | 16,024,724 | |||||
Depreciation expense for the years ended December 31, 2013, 2012, and 2011 was $7.7 million, $5.7 million, and $4.0 million, respectively. |
Debt_Obligations_and_Collatera
Debt Obligations and Collateral Requirements | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Obligations and Collateral Requirements | ' | |
6. DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | ||
On June 28, 2013, the Company entered into an amendment to extend its $10.0 million unsecured revolving credit agreement with a bank to May 1, 2015. This revolving credit facility is available to finance working capital, issue letters of credit, and finance general corporate purposes. The Company can obtain letters of credit in an aggregate amount of $5.0 million, which reduces the maximum amount available for borrowing under the facility. Interest on amounts borrowed is payable at a base rate or a Eurodollar rate, in each case as defined in the agreement. The base rate is equal to the higher of the Federal Funds Rate plus 0.50% or the bank’s prime rate. Fees on outstanding letters of credit are either 1.50% (if the Company’s consolidated leverage ratio is less than or equal to 1.25:1) or 1.75% (if the Company’s consolidated leverage ratio is greater than 1.25:1) of face value per annum. | ||
The terms of the agreement provide for customary representations and warranties, affirmative and negative covenants and events of default. The amendment also continues to require the Company to maintain compliance with the following financial covenants (in each case, as defined in the agreement): | ||
● | Consolidated minimum annual EBITDA of at least $12.0 million, computed quarterly on a rolling 12-month basis; | |
● | Consolidated tangible net worth of at least $36.0 million; and | |
● | Consolidated maximum leverage ratio of 1.5:1. | |
The Company was in compliance with each of the covenants listed above at December 31, 2013. The Company issues letters of credit as collateral for certain office leases, and to a lesser extent, as collateral for performance on certain of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $1.6 million at December 31, 2013. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.4 million in available capacity to issue additional letters of credit and $8.4 million of unused borrowing capacity at December 31, 2013 under the facility. Letters of credit may have an expiration date of up to one year beyond the expiration date of the credit agreement. | ||
The Company has a $1.0 million line of credit with a bank in conjunction with a corporate credit card agreement. | ||
At December 31, 2013, the Company was bound by performance bond commitments totaling approximately $6.1 million on certain outsourced government portal contracts. The Company has never had any defaults resulting in draws on performance bonds. Had the Company been required to post 100% cash collateral at December 31, 2013 for the face value of all performance bonds, letters of credit and its line of credit in conjunction with a corporate credit card agreement, unrestricted cash would have decreased by approximately $8.7 million and would have been classified as restricted cash. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
7. COMMITMENTS AND CONTINGENCIES | |||||
Operating leases | |||||
The Company and its subsidiaries lease office space and certain equipment under noncancellable operating leases. Future minimum lease payments under all noncancellable operating leases at December 31, 2013 are as follows: | |||||
Fiscal Year | |||||
2014 | $ | 4,078,149 | |||
2015 | 3,529,052 | ||||
2016 | 2,288,001 | ||||
2017 | 1,617,494 | ||||
2018 | 1,413,079 | ||||
Thereafter | 304,354 | ||||
Rent expense for operating leases for the years ended December 31, 2013, 2012, and 2011 was approximately $4.2 million, $3.8 million, and $3.4 million, respectively. | |||||
SEC Matter | |||||
On January 12, 2011, the Company and its Chairman of the Board and Chief Executive Officer, Harry Herington, reached a settlement with the SEC resolving the previously disclosed SEC matter relating to the reimbursement and disclosure of expenses to Jeffery S. Fraser, the Company’s former Chairman of the Board and Chief Executive Officer. NIC and Mr. Herington agreed to the settlement without admitting or denying the allegations in the SEC complaint. The settlements were approved by the U.S. District Court for the District of Kansas. | |||||
Stephen M. Kovzan, NIC’s Chief Financial Officer, informed the Company that he was unable to reach a settlement with the SEC on terms that he felt were acceptable. The SEC filed a civil complaint against him in the U.S. District Court for the District of Kansas on January 12, 2011, alleging violations of certain provisions of the federal securities laws detailed in that complaint relating to the reporting and disclosure of expenses by Mr. Fraser. On December 2, 2013, a federal jury of seven persons in Kansas City, Kansas, cleared Mr. Kovzan of any liability in connection with all alleged violations brought by the SEC against him. The SEC’s right to appeal the outcome of the trial has expired and the civil action against Mr. Kovzan is concluded. | |||||
During 2013, the Company continued to incur obligations to advance legal fees and other expenses to Mr. Kovzan in connection with the civil action by the SEC against him. The Company was not a party to the civil action, but was obligated to provide indemnification in certain circumstances (including advancing certain defense costs) to Mr. Kovzan in accordance with the Company’s certificate of incorporation and bylaws and its indemnification agreement with him. The Company’s directors’ and officers’ liability insurance carrier agreed to reimburse the Company for certain reasonable costs of defense advanced by the Company to Mr. Kovzan in the SEC civil action, subject to the policy limits of the applicable insurance policy. During the fourth quarter of 2013, the policy limits of the Company’s directors’ and officers’ liability insurance were reached for claims related to the SEC matter and, therefore, the Company will not be entitled to any further reimbursements from its insurance carrier in excess of the limits. The Company does not currently expect to incur any additional costs related to the SEC matter in 2014. | |||||
Selling & administrative expenses for the year ended December 31, 2013 include approximately $12.8 million of legal fees and other third-party costs related to the SEC matter. These expenses were reduced by approximately $8.8 million of reimbursement from the Company’s directors’ and officers’ liability insurance carrier, a portion of which is expected to be collected subsequent to December 31, 2013, resulting in a net expense of approximately $4.0 million related to the SEC matter in 2013. Selling & administrative expenses for the year ended December 31, 2012 include approximately $4.5 million of legal fees and other third-party costs related to the SEC matter. These expenses were reduced by approximately $4.0 million of reimbursement from the Company’s directors’ and officers’ liability insurance carrier, resulting in a net expense of approximately $0.5 million related to the SEC matter in 2012. Selling & administrative expenses for the year ended December 31, 2011 include approximately $4.2 million of legal fees and other third-party costs related to the SEC matter and derivative action discussed below. These expenses were reduced by approximately $4.5 million of reimbursement from the Company’s directors’ and officers’ liability insurance carrier and approximately $0.2 million of reimbursement from Mr. Fraser as part of the derivative action settlement, resulting in a net decrease in expense of approximately $0.5 million in 2011. | |||||
Derivative Action | |||||
As previously disclosed, the parties to the derivative lawsuit (Gene Sidore, derivatively on behalf of NIC Inc. vs. William F. Bradley, Jr., John L. Bunce, Jr., Art N. Burtscher, Daniel J. Evans, Jeffery S. Fraser, Ross C. Hartley, Harry H. Herington, Alexander C. Kemper, Stephen M. Kovzan, William M. Lyons, Pete Wilson, and NIC Inc. (as nominal defendant), case No. 2:10-cv-02466 (U.S. District Court for the District of Kansas)) agreed to a settlement. On October 11, 2011, the court granted final approval of the settlement, which can no longer be appealed. Under the settlement, the Company agreed to (i) implement or maintain certain agreed governance procedures relating to, among other things, enhanced Audit Committee responsibilities, Director nomination procedures, Director stock ownership guidelines, executive compensation and expense review and oversight, and the process for certain public disclosures, and (ii) pay plaintiff $5,000 as a case contribution and award, and the plaintiff’s counsel $495,000 in attorney’s fees and costs. Both amounts were reimbursed by the Company’s directors’ and officers’ liability insurance carrier. The Company also agreed not to oppose any efforts by plaintiff and his counsel to recover for the benefit of the stockholders the sums paid to the SEC in connection with the enforcement action SEC v. NIC Inc., et al., No 2:11-cv-02016 (D. Kan.). In exchange, plaintiff and the Company generally released all individual defendants from any and all claims made against them, or that could have been made against them, in the derivative lawsuit. In conjunction with the settlement negotiations in the derivative lawsuit, the Company and the derivative plaintiff Mr. Sidore reached a comprehensive settlement with its former CEO and Chairman, Jeffery S. Fraser, for expenses paid by the Company to Mr. Fraser from 1999 through 2003. The parties, including derivative plaintiff Mr. Sidore, agreed to resolve the matter through payment from Mr. Fraser to the Company in the amount of $225,000, as well as a comprehensive mutual release of claims as between the Company and Mr. Fraser, including a release by Mr. Fraser of any further claims for indemnification, under the Company’s bylaws or otherwise, for future matters arising out of or related to the facts alleged in the derivative lawsuit or the SEC matter, which was settled by the Company and Mr. Herington as described above. In October 2011, the Company received the $225,000 reimbursement from Mr. Fraser and the Audit Committee review of expenses paid by the Company to Mr. Fraser was concluded. | |||||
NIC Technologies, LLC Complaint | |||||
As previously disclosed, the Company’s subsidiary, NIC Technologies, LLC was a defendant in a lawsuit filed in the U.S. District Court for the District of Maryland by Micro Focus (US), Inc. and Micro Focus (IP) Limited (collectively, “Micro Focus”), alleging: (i) breach of contract regarding the software license for software used to compile code running on two NIC Technologies’ internal servers to deliver FEC services; and (ii) copyright infringement of the software covered by the licenses. The complaint in the lawsuit sought damages of at least $3,487,500 and a declaratory judgment. On July 29, 2011, the parties finalized a settlement of $195,000, which was paid by NIC Technologies, LLC to Micro Focus, in exchange for an appropriate release of all liability, no admissions of liability by either party, and dismissal with prejudice. | |||||
Litigation | |||||
The Company is involved from time to time 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, 2013 | |
Stockholders' Equity | ' |
8. STOCKHOLDERS’ EQUITY | |
On October 28, 2013, the Company’s Board of Directors declared a special cash dividend of $0.35 per share, payable to stockholders of record as of November 8, 2013. The dividend, totaling approximately $23.0 million, was paid on January 2, 2014 on 64,987,854 outstanding shares of common stock. A dividend equivalent of $0.35 per share was also paid simultaneously on 676,281 unvested shares of service-based restricted stock granted under the Company’s 2006 Amended and Restated Stock Option and Incentive Plan. The dividend was paid out of the Company’s available cash. | |
On November 5, 2012, the Company’s Board of Directors declared a special cash dividend of $0.25 per share, payable to stockholders of record as of November 23, 2012. The dividend, totaling approximately $16.3 million, was paid on December 5, 2012 on 64,623,372 outstanding shares of common stock. A dividend equivalent of $0.25 per share was also paid simultaneously on 727,354 unvested shares of service-based restricted stock granted under the Company’s 2006 Amended and Restated Stock Option and Incentive Plan. The dividend was paid out of the Company’s available cash. | |
On October 24, 2011, the Company’s Board of Directors declared a special cash dividend of $0.25 per share, payable to stockholders of record as of December 19, 2011. The dividend, totaling approximately $16.2 million, was paid on January 3, 2012 on 64,173,368 outstanding shares of common stock. A dividend equivalent of $0.25 per share was also paid simultaneously on 750,497 unvested shares of service-based restricted stock granted under the Company’s 2006 Amended and Restated Stock Option and Incentive Plan. The dividend was paid out of the Company’s available cash. | |
In addition, holders of performance-based restricted stock granted under the Company’s 2006 Amended and Restated Stock Option and Incentive Plan accrued dividend equivalents, for each of the dividends declared noted above, that could be earned and become payable in the form of shares of common stock at the end of the respective performance period to the extent that the underlying shares of restricted stock were earned. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
9. INCOME TAXES | |||||||||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income taxes: | |||||||||||||
Federal | $ | 18,436,209 | $ | 14,891,245 | $ | 12,655,924 | |||||||
State | 3,154,439 | 1,211,358 | 2,086,588 | ||||||||||
Total | 21,590,648 | 16,102,603 | 14,742,512 | ||||||||||
Deferred income taxes: | |||||||||||||
Federal | (1,111,536 | ) | 691,961 | 449,566 | |||||||||
State | 41,548 | 42,247 | 338,692 | ||||||||||
Total | (1,069,988 | ) | 734,208 | 788,258 | |||||||||
Total income tax provision | $ | 20,520,660 | $ | 16,836,811 | $ | 15,530,770 | |||||||
Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Amortization of internal use software development costs | $ | 1,461,246 | $ | 1,231,729 | |||||||||
Stock-based compensation | 1,289,584 | 1,270,998 | |||||||||||
Accrued vacation | 762,293 | 576,187 | |||||||||||
Amortization of software intangibles | 638,894 | 1,493,102 | |||||||||||
Federal benefit of state uncertain tax positions | 431,387 | - | |||||||||||
State net operating loss carryforwards | 326,586 | 401,591 | |||||||||||
Deferred rent | 233,923 | 274,857 | |||||||||||
Allowance for doubtful accounts | 226,359 | 236,494 | |||||||||||
Other | 59,912 | 194,556 | |||||||||||
5,430,184 | 5,679,514 | ||||||||||||
Less: Valuation allowance | (310,369 | ) | (291,249 | ) | |||||||||
Total | 5,119,815 | 5,388,265 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation & capitalized internal use software and development costs | (5,382,498 | ) | (5,410,640 | ) | |||||||||
Nonrecurring gain on acquisition of business | (1,130,997 | ) | (1,140,886 | ) | |||||||||
Total | (6,513,495 | ) | (6,551,526 | ) | |||||||||
Net deferred tax liability | $ | (1,393,680 | ) | $ | (1,163,261 | ) | |||||||
The Company has identified certain estimated state net operating loss (“NOL”) carryforwards that it might be unable to use. Based on a review of applicable state tax statutes, the Company concluded that there is substantial doubt it would be able to realize the full amount of certain estimated NOL carryforwards in states where the Company cannot file a consolidated income tax return or where future taxable income will not be sufficient to utilize the state NOL before it expires. As a result, the Company recorded a deferred tax asset valuation allowance totaling $0.3 million at both December 31, 2013 and 2012. | |||||||||||||
The Company’s net deferred tax liability at December 31, 2013 is primarily attributable to differences between book and tax depreciation on property and equipment purchased during 2013 and 2012. The portion of the Company’s deferred tax liability related to the nonrecurring gain on acquisition of business for certain assets acquired through the Company’s wholly-owned subsidiary Texas NICUSA, LLC in 2009 was approximately $1.1 million at both December 31, 2013 and 2012. | |||||||||||||
See Note 10 for discussion of the accounting for income tax deductions relating to the vesting of restricted stock. | |||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 3.2 | 1 | 4.4 | ||||||||||
Nondeductible expenses | 1.4 | 2.5 | 2 | ||||||||||
Uncertain tax positions | 1.2 | 0.3 | 0.4 | ||||||||||
Federal and state tax credits | (2.0 | ) | - | (1.7 | ) | ||||||||
Other | 0.2 | 0.2 | 0.3 | ||||||||||
Effective federal and state income tax rate | 39 | % | 39 | % | 40.4 | % | |||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012 (the “Act”) was signed into law. The Act retroactively extended the federal research and development credit under Internal Revenue Code Section 41 (which previously expired at the end of 2011) through the end of 2013. In accordance with authoritative accounting guidance, the Company recognized the impact of this legislation for the 2012 tax year in 2013, when the Act was signed into law. For the 2013 tax year, the Company recognized a favorable benefit related to the federal research and development tax credit totaling approximately $0.5 million for the year ended December 31, 2012, which was recognized in 2013, and approximately $0.3 million for the year ended December 31, 2013. | |||||||||||||
The Company’s effective tax rate for 2012 was lower than the rate in 2011 due to several factors, including the favorable outcome of an Internal Revenue Service (“IRS”) examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes primarily due to a change in apportionment methodology for certain states. | |||||||||||||
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, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at January 1 | $ | 688,575 | $ | 586,606 | $ | 397,825 | |||||||
Additions for tax positions of prior years | 439,550 | 262,865 | 247,429 | ||||||||||
Reductions for tax positions of prior years | - | (347,492 | ) | - | |||||||||
Additions for tax positions of current years | 632,309 | 186,596 | - | ||||||||||
Settlements | - | - | (48,218 | ) | |||||||||
Expiration of the statute of limitations | - | - | (10,430 | ) | |||||||||
Balance at December 31 | $ | 1,760,434 | $ | 688,575 | $ | 586,606 | |||||||
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, 2010. Additionally, any net operating losses that were generated in prior years and utilized through 2010 may also be subject to examination by the IRS. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. | |||||||||||||
The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of income tax expense in the consolidated statements of income. At December 31, 2013, 2012 and 2011, accrued interest and penalty amounts were not material. |
StockBased_Compensation_and_Em
Stock-Based Compensation and Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock-Based Compensation and Employee Benefit Plans | ' | ||||||||||||
10. STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | |||||||||||||
The Company accounts for equity instruments exchanged for employee services pursuant to authoritative accounting guidance for share-based payments, whereby stock-based compensation cost for service-based restricted stock awards is measured at the grant date based on the calculated fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the grant). Stock-based compensation cost for performance-based restricted stock awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, and is recognized as expense over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. | |||||||||||||
The following table presents stock-based compensation expense included in the Company’s consolidated statements of income: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of portal revenues, exclusive of | |||||||||||||
depreciation & amortization | $ | 1,100,396 | $ | 997,340 | $ | 907,684 | |||||||
Cost of software & services revenues, | |||||||||||||
exclusive of depreciation & amortization | 48,128 | 61,845 | 63,099 | ||||||||||
Selling & administrative | 2,877,436 | 2,743,387 | 3,538,944 | ||||||||||
Stock-based compensation expense | |||||||||||||
before income taxes | 4,025,960 | 3,802,572 | 4,509,727 | ||||||||||
Income tax benefit | (1,571,867 | ) | (1,482,857 | ) | (1,820,473 | ) | |||||||
Net stock-based compensation expense | $ | 2,454,093 | $ | 2,319,715 | $ | 2,689,254 | |||||||
Stock option and restricted stock plans | |||||||||||||
The Company has a formal stock-option and incentive plan (the “NIC plan”) to provide for the granting of incentive stock options, non-qualified stock options, or restricted stock awards 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. | |||||||||||||
At December 31, 2013, a total of 3,746,926 shares were available for future grants under the NIC plan. There have been no option repricings under the NIC plan, and all then-outstanding stock options were exercised or expired in 2010. The Company did not grant any stock options in 2013, 2012, or 2011, and does not currently anticipate granting stock options in the future. Instead, the Company currently expects to grant only restricted stock awards. | |||||||||||||
Restricted stock | |||||||||||||
Grants of service-based restricted stock generally vest beginning one year from the date of grant in cumulative annual installments of 25%. During 2013, the Board of Directors of the Company granted certain management-level employees, executive officers, and non-employee directors service-based restricted stock awards totaling 289,333 shares with a grant-date fair value totaling approximately $4.8 million. | |||||||||||||
During 2013, the Board of Directors of the Company also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company’s executive compensation program totaling 115,696 shares, with a grant date fair value of $16.24 per share, totaling approximately $1.9 million, which represents the maximum number of shares able to be earned by the executive officers at the end of a three-year performance period ending December 31, 2015. The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period: | |||||||||||||
● | Operating income growth (three-year compound annual growth rate); | ||||||||||||
● | Total consolidated revenue growth (three-year compound annual growth rate); and | ||||||||||||
● | Cash flow return on invested capital (three-year average). | ||||||||||||
At the end of the three-year period, the executive officers are eligible to receive up to a specified number of shares based upon the Company’s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividend declared during the performance period, payable in the form of shares of Company common stock, based upon the maximum number of shares to be earned by the executive officers for each performance-based restricted stock award. Such hypothetical cash dividend payment shall be divided by the fair value of the Company’s common stock on the dividend payment date to determine the maximum number of notional shares to be awarded. At the end of the three-year performance period and on the date some or all of the shares are paid under the agreement, a pro rata number of notional dividend shares will be converted into an equivalent number of dividend shares paid and granted to the executive officers based upon the actual number of underlying shares earned during the performance period. | |||||||||||||
At December 31, 2013, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on March 7, 2011 ended. Based on the Company’s actual financial results from 2011 through 2013, 85,365 of the shares subject to the awards and 4,350 dividend shares were earned and will vest on March 7, 2014. | |||||||||||||
At December 31, 2012, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 1, 2010 ended. Based on the Company’s actual financial results from 2010 through 2012, 78,747 of the shares subject to the awards and 8,013 dividend shares were earned and vested on February 1, 2013. | |||||||||||||
At December 31, 2011, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 3, 2009 ended. Based on the Company’s actual financial results from 2009 through 2011, 172,751 of the shares subject to the awards and 25,008 dividend shares were earned and vested on February 3, 2012. | |||||||||||||
A summary of restricted stock activity for the year ended December 31, 2013 is presented below: | |||||||||||||
Restricted | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding at January 1, 2013 | 1,113,868 | $ | 10.41 | ||||||||||
Granted | 405,029 | 16.54 | |||||||||||
Vested | (401,794 | ) | 8.8 | ||||||||||
Canceled | (73,287 | ) | 10.22 | ||||||||||
Outstanding at December 31, 2013 | 1,043,816 | 13.42 | |||||||||||
The fair value of restricted stock vested during the years ended December 31, 2013, 2012, and 2011 was approximately $3.5 million, $3.6 million, and $3.6 million, respectively. The weighted average grant date fair value per share of restricted stock granted during the years ended December 31, 2013, 2012, and 2011 was $16.54, $11.83, and $10.61, respectively. At December 31, 2013, the Company had approximately $6.7 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock awards. The Company expects to recognize this cost over the next 2.5 years from December 31, 2013. | |||||||||||||
Income taxes | |||||||||||||
The Company is permitted to recognize a credit to additional paid-in capital for federal income tax deductions, or windfall tax benefits, resulting from the vesting of restricted stock if such windfall tax benefits reduce income taxes payable. Following the with-and-without approach for utilization of tax attributes, the Company increased additional paid-in capital for windfall tax benefits totaling approximately $1.3 million, $1.4 million, and $1.5 million, respectively, during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||
Earnings per share | |||||||||||||
In calculating diluted earnings per share, the assumed proceeds in the treasury stock calculation are adjusted for any stock option windfall tax benefits or shortfalls that would be credited or debited, respectively, to additional paid-in capital. Upon adoption of authoritative accounting guidance for share-based payments, the Company elected to exclude the impact of pro forma deferred tax assets (i.e., the windfall or shortfall that would be recognized in the financial statements upon exercise of an award) when calculating diluted earnings per share. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
In 1999, the Company’s Board of Directors approved an employee stock purchase plan (“ESPP”) intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. A total of 2,321,688 shares of NIC common stock have been reserved for issuance under this plan. Terms of the plan permit eligible employees to purchase NIC common stock through payroll deductions up to the lesser of 15% of each employee’s compensation or $25,000. Amounts deducted and accumulated by the participant are used to purchase shares of NIC’s common stock at 85% of the lower of the fair value of the common stock at the beginning or the end of the offering period, as defined in the plan. | |||||||||||||
In the offering period commencing on April 1, 2012 and ending on March 31, 2013, 87,578 shares were purchased at a price of $10.33 per share, resulting in total cash proceeds to the Company of approximately $904,000. In the offering period commencing on April 1, 2011 and ending on March 31, 2012, 78,045 shares were purchased at a price of $10.33 per share, resulting in total cash proceeds to the Company of approximately $806,000. In the offering period commencing on April 1, 2010 and ending on March 31, 2011, 103,593 shares were purchased at a price of $6.29 per share, resulting in total cash proceeds to the Company of approximately $652,000. The next offering period under this plan commenced on April 1, 2013. The closing fair market value of NIC common stock on the first day of the current offering period was $19.12 per share. | |||||||||||||
The fair values of the offerings were estimated on the dates of grant using the Black-Scholes model using the assumptions in the following table. | |||||||||||||
31-Mar-14 | 31-Mar-13 | 31-Mar-12 | |||||||||||
Offering | Offering | Offering | |||||||||||
Risk-free interest rate | 0.14% | 0.19% | 0.27% | ||||||||||
Expected dividend yield | 3.73% | 4.34% | 5.29% | ||||||||||
Expected life | 1.0 year | 1.0 year | 1.0 year | ||||||||||
Expected stock price volatility | 28.84% | 37.30% | 31.26% | ||||||||||
Weighted average fair value of ESPP rights | $ | 4.59 | $ | 3.27 | $ | 3 | |||||||
The Black-Scholes option-pricing model was not developed for use in valuing employee stock options, but was developed for use in estimating the fair value of traded 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 employee stock options. | |||||||||||||
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 $1.8 million, $1.7 million, and $1.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
Reportable_Segments_and_Relate
Reportable Segments and Related Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Reportable Segments and Related Information | ' | ||||||||||||||||
11. REPORTABLE SEGMENTS AND RELATED INFORMATION | |||||||||||||||||
The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating enterprise-wide outsourced state and local government portals and the corporate divisions that directly support portal operations. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and has been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Unallocated corporate-level expenses are reported in the reconciliation of the segment totals to the related consolidated totals as “Other Reconciling Items.” There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and operating segments. | |||||||||||||||||
The measure of profitability by which management, including the Company’s chief operating decision maker, 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 chief operating decision maker. Accordingly, the Company has not presented information relating to segment assets. | |||||||||||||||||
The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31: | |||||||||||||||||
Outsourced | Other Software & | Other | Consolidated | ||||||||||||||
Portals | Services | Reconciling | Total | ||||||||||||||
Items | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 235,183,005 | $ | 14,095,660 | $ | - | $ | 249,278,665 | |||||||||
Costs & expenses | 153,204,265 | 4,665,185 | 30,466,074 | 188,335,524 | |||||||||||||
Depreciation & amortization | 8,001,597 | 53,475 | 278,017 | 8,333,089 | |||||||||||||
Operating income (loss) | $ | 73,977,143 | $ | 9,377,000 | $ | (30,744,091 | ) | $ | 52,610,052 | ||||||||
2012 | |||||||||||||||||
Revenues | $ | 198,414,662 | $ | 11,757,514 | $ | - | $ | 210,172,176 | |||||||||
Costs & expenses | 131,559,290 | 4,397,608 | 24,504,976 | 160,461,874 | |||||||||||||
Depreciation & amortization | 6,225,114 | 60,557 | 232,861 | 6,518,532 | |||||||||||||
Operating income (loss) | $ | 60,630,258 | $ | 7,299,349 | $ | (24,737,837 | ) | $ | 43,191,770 | ||||||||
2011 | |||||||||||||||||
Revenues | $ | 170,276,434 | $ | 10,622,737 | $ | - | $ | 180,899,171 | |||||||||
Costs & expenses | 110,994,019 | 4,362,317 | 22,136,275 | 137,492,611 | |||||||||||||
Depreciation & amortization | 4,571,950 | 58,108 | 268,430 | 4,898,488 | |||||||||||||
Operating income (loss) | $ | 54,710,465 | $ | 6,202,312 | $ | (22,404,705 | ) | $ | 38,508,072 | ||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total segment operating income | $ | 83,354,143 | $ | 67,929,607 | $ | 60,912,777 | |||||||||||
Other reconciling items | (30,744,091 | ) | (24,737,837 | ) | (22,404,705 | ) | |||||||||||
Other expense, net | (51,301 | ) | (16,211 | ) | (34,820 | ) | |||||||||||
Consolidated income before income taxes | $ | 52,558,751 | $ | 43,175,559 | $ | 38,473,252 | |||||||||||
The highest volume, most commercially valuable service the Company offers is access to motor vehicle driver history records through the Company’s outsourced government portals, referred to as DMV records. This service accounted for approximately 34%, 34%, and 36% of the Company’s total consolidated revenues in 2013, 2012, and 2011, respectively. In addition, the Company offers a service in several states for online motor vehicle registration and licensing. This service accounted for approximately 13% and 10% of the Company’s total consolidated revenues in 2013 and 2012, respectively. No other services accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31, 2013, 2012, or 2011. | |||||||||||||||||
A primary source of revenue is derived from data resellers, who use the Company’s government portals to access DMV records for sale to the auto insurance industry. For the years ended December 31, 2013, 2012, and 2011, one of these data resellers accounted for approximately 22%, 23%, and 28% of the Company’s total consolidated revenues, respectively. At December 31, 2013 and 2012, this one data reseller accounted for approximately 23% and 21%, respectively, of the Company’s accounts receivable. | |||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, the Company’s Texas portal accounted for approximately 23%, 21%, and 21% of the Company’s total consolidated revenues, respectively. No other state portal contract accounted for more than 10% of the Company’s total consolidated revenues for the years ended December 31, 2013, 2012, or 2011. |
Unaudited_Quarterly_Operating_
Unaudited Quarterly Operating Results | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Unaudited Quarterly Operating Results | ' | ||||||||||||||||||||
12. UNAUDITED QUARTERLY OPERATING RESULTS | |||||||||||||||||||||
The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year (on an individual portal basis, and excluding revenues from new outsourced government portal contracts awarded or acquired during the 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. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | 31-Dec-13 | |||||||||||||||||
Revenues: | -1 | ||||||||||||||||||||
Portal revenues | $ | 58,042,459 | $ | 62,093,296 | $ | 57,721,350 | $ | 57,325,900 | $ | 235,183,005 | |||||||||||
Software & services revenues | 3,182,291 | 3,844,035 | 3,608,409 | 3,460,925 | 14,095,660 | ||||||||||||||||
Total revenues | 61,224,750 | 65,937,331 | 61,329,759 | 60,786,825 | 249,278,665 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of portal revenues, exclusive of | |||||||||||||||||||||
depreciation & amortization | 32,761,919 | 34,899,128 | 39,755,133 | 35,638,094 | 143,054,274 | ||||||||||||||||
Cost of software & services revenues, | |||||||||||||||||||||
exclusive of depreciation & | |||||||||||||||||||||
amortization | 1,103,195 | 1,188,765 | 928,301 | 1,136,347 | 4,356,608 | ||||||||||||||||
Selling & administrative | 9,609,051 | 10,057,707 | 10,387,621 | 10,870,263 | 40,924,642 | ||||||||||||||||
Depreciation & amortization | 2,026,623 | 2,049,189 | 2,144,842 | 2,112,435 | 8,333,089 | ||||||||||||||||
Total operating expenses | 45,500,788 | 48,194,789 | 53,215,897 | 49,757,139 | 196,668,613 | ||||||||||||||||
Operating income | 15,723,962 | 17,742,542 | 8,113,862 | 11,029,686 | 52,610,052 | ||||||||||||||||
Other income (expense), net | (19,233 | ) | (1,649 | ) | 4,362 | (34,781 | ) | (51,301 | ) | ||||||||||||
Income before income taxes | 15,704,729 | 17,740,893 | 8,118,224 | 10,994,905 | 52,558,751 | ||||||||||||||||
Income tax provision | 5,747,849 | 6,933,086 | 3,025,500 | 4,814,225 | 20,520,660 | ||||||||||||||||
Net income | $ | 9,956,880 | $ | 10,807,807 | $ | 5,092,724 | $ | 6,180,680 | $ | 32,038,091 | |||||||||||
Basic net income per share | $ | 0.15 | $ | 0.16 | $ | 0.08 | $ | 0.09 | $ | 0.49 | |||||||||||
Diluted net income per share | $ | 0.15 | $ | 0.16 | $ | 0.08 | $ | 0.09 | $ | 0.49 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 64,709,515 | 64,889,767 | 64,961,138 | 64,991,597 | 64,888,978 | ||||||||||||||||
Diluted | 64,709,515 | 64,889,767 | 64,968,858 | 65,060,718 | 64,954,366 | ||||||||||||||||
(1) | The Company’s higher effective tax rate in the fourth quarter of 2013 (44%) was driven primarily by changes in state taxes, including true-ups upon the filing of state returns in the fourth quarter of 2013, which lowered earnings per share by approximately $0.01. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | 31-Dec-12 | |||||||||||||||||
Revenues: | -1 | ||||||||||||||||||||
Portal revenues | $ | 45,711,804 | $ | 49,042,468 | $ | 50,197,700 | $ | 53,462,690 | $ | 198,414,662 | |||||||||||
Software & services revenues | 3,031,317 | 2,939,332 | 3,008,474 | 2,778,391 | 11,757,514 | ||||||||||||||||
Total revenues | 48,743,121 | 51,981,800 | 53,206,174 | 56,241,081 | 210,172,176 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of portal revenues, exclusive of | |||||||||||||||||||||
depreciation & amortization | 28,750,896 | 30,549,948 | 31,794,232 | 32,473,629 | 123,568,705 | ||||||||||||||||
Cost of software & services revenues, | |||||||||||||||||||||
exclusive of depreciation & | |||||||||||||||||||||
amortization | 957,423 | 1,008,078 | 1,079,460 | 996,262 | 4,041,223 | ||||||||||||||||
Selling & administrative | 7,935,303 | 8,382,643 | 8,218,715 | 8,315,285 | 32,851,946 | ||||||||||||||||
Depreciation & amortization | 1,391,337 | 1,400,470 | 1,657,607 | 2,069,118 | 6,518,532 | ||||||||||||||||
Total operating expenses | 39,034,959 | 41,341,139 | 42,750,014 | 43,854,294 | 166,980,406 | ||||||||||||||||
Operating income | 9,708,162 | 10,640,661 | 10,456,160 | 12,386,787 | 43,191,770 | ||||||||||||||||
Other expense, net | (890 | ) | - | - | (15,321 | ) | (16,211 | ) | |||||||||||||
Income before income taxes | 9,707,272 | 10,640,661 | 10,456,160 | 12,371,466 | 43,175,559 | ||||||||||||||||
Income tax provision | 4,079,721 | 4,546,917 | 4,461,320 | 3,748,853 | 16,836,811 | ||||||||||||||||
Net income | $ | 5,627,551 | $ | 6,093,744 | $ | 5,994,840 | $ | 8,622,613 | $ | 26,338,748 | |||||||||||
Basic net income per share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.13 | $ | 0.4 | |||||||||||
Diluted net income per share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.13 | $ | 0.4 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 64,296,996 | 64,488,837 | 64,585,659 | 64,627,150 | 64,500,244 | ||||||||||||||||
Diluted | 64,296,996 | 64,488,837 | 64,603,817 | 64,696,246 | 64,564,664 | ||||||||||||||||
(1) | The Company’s lower effective tax rate (30%) in the fourth quarter of 2012 was due to several factors, including the favorable outcome of an IRS examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes, which increased earnings per share between $0.01 and $0.02. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating enterprise-wide outsourced portals 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 software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative, and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. For the year ended December 31, 2013, cost of portal revenues also includes a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) to write-off accounts receivable due from the Commonwealth of Pennsylvania for eGovernment services provided from January 1, 2013 through June 30, 2013, as further discussed below. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative costs consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company’s software & services businesses, including information systems and office rent. Selling & administrative costs also consist of stock-based compensation and corporate-level expenses for market development and public relations. In addition, selling & administrative costs include legal fees and other third-party costs, net of directors’ and officers’ liability insurance reimbursements received, incurred in connection with the previously disclosed SEC matter, which concluded in December 2013 (see Note 7). | |||||||||||||
Certain income statement amounts for the year ended December 31, 2012 have been reclassified, resulting in a reduction in both portal revenues and cost of portal revenues by approximately $1.0 million. The reclassification had no effect on prior year operating income, net income or earnings per share. Certain other prior year amounts have been reclassified to conform to the 2013 presentation. | |||||||||||||
Basis of consolidation | ' | ||||||||||||
Basis of consolidation | |||||||||||||
The accompanying consolidated financial statements consolidate the Company together with all of its direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||
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. | |||||||||||||
Cash restricted for payment of dividend | ' | ||||||||||||
Cash restricted for payment of dividend | |||||||||||||
Restricted cash represents cash which is restricted for use by NIC. On October 28, 2013, the Company’s Board of Directors declared a special cash dividend of $0.35 per share, payable to stockholders of record as of November 8, 2013. The dividend, totaling approximately $23.0 million, was paid on January 2, 2014. Cash used to pay the special dividend was classified as restricted at December 31, 2013. | |||||||||||||
Trade accounts receivable | ' | ||||||||||||
Trade accounts receivable | |||||||||||||
The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. | |||||||||||||
As previously disclosed in prior filings with the Securities and Exchange Commission (“SEC”), the Company had not collected amounts due from the Commonwealth of Pennsylvania (the “Commonwealth”) totaling approximately $5.1 million for eGovernment services provided by the Company’s subsidiary, Pennsylvania Interactive, LLC, from January 1, 2013 to June 30, 2013. At June 30, 2013, the Company believed these amounts were fully collectible based upon legal review and preliminary discussions with Commonwealth administration officials. Due to the preliminary nature of those discussions, the Company was unable to estimate the amount or range of amounts, if any, that it would not be able to collect from the Commonwealth, as of June 30, 2013. On September 9, 2013, the Company filed a Form 8-K with the SEC disclosing that, due to certain developments, including further discussions with Commonwealth officials, on September 6, 2013, the Company elected not to pursue collection of outstanding accounts receivable from the Commonwealth and recorded a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) in the third quarter of 2013 to write-off amounts due from the Commonwealth through June 30, 2013. The charge is included in cost of portal revenues of the Company’s consolidated statements of income for the year ended December 31, 2013. The Company continued to provide eGovernment services under the contract with the Commonwealth, but did not recognize revenues under the contract subsequent to June 30, 2013 until the contract became self-funded in October 2013. | |||||||||||||
The Company’s allowance for doubtful accounts at both December 31, 2013 and 2012 was $0.6 million. | |||||||||||||
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 warrant such a review. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flows from the asset is separately identifiable and 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 flows 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 material impairment losses on property and equipment during the periods presented. | |||||||||||||
Software development costs and intangible assets | ' | ||||||||||||
Software development costs and intangible assets | |||||||||||||
The Company expenses as incurred all employee costs to start up, operate, and maintain government portals on an outsourced basis as costs of performance under the contracts because, after the completion of a defined contract term, the government entity with which the Company contracts typically receives a perpetual, royalty-free license to the applications the Company developed, excluding applications provided on a SaaS basis. Such costs are included in cost of portal revenues in the consolidated statements of income. | |||||||||||||
The Company accounts for the costs of developing internal use computer software in accordance with authoritative accounting guidance for internal use computer software, whereby certain costs of developing internal use computer software are capitalized and amortized over their estimated useful life. For internal use computer software, the estimated economic life is typically 36 months from the date the software is placed in production. At December 31, 2013 and 2012, such costs are included in intangible assets in the consolidated balance sheets. | |||||||||||||
The Company carries intangible assets at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over estimated economic lives of the respective assets. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any impairment losses on intangible assets during the periods presented. | |||||||||||||
Accrued expenses | ' | ||||||||||||
Accrued expenses | |||||||||||||
As of each balance sheet date, the Company estimates expenses which have been incurred but not yet paid or for which invoices have not yet been received. Significant components of accrued expenses consist primarily of employee compensation and benefits (including bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, payment processing fees, and miscellaneous other accruals. | |||||||||||||
Revenue recognition | ' | ||||||||||||
Revenue recognition | |||||||||||||
Portal revenues | |||||||||||||
The Company recognizes revenue from providing enterprise-wide outsourced government portal services (primarily transaction-based information access fees and filing fees) net of the transaction fees due to the government when the services are provided. The fees that the Company must remit to state agencies for data access and other statutory fees are accrued as accounts payable at the time services are provided. The Company must remit a certain amount or percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. | |||||||||||||
Revenue from service contracts to provide portal consulting, application development, and management services to governments is recognized as the services are provided at rates provided for in the contract. | |||||||||||||
Amounts received prior to providing services are recorded as unearned revenue. At each balance sheet date, the Company makes a determination as to the portion of unearned revenue 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. Unearned revenues at December 31, 2013 and 2012 were approximately $0.3 million and $0.2 million, respectively, and were recorded in other current liabilities in the consolidated balance sheets. | |||||||||||||
Software & services revenues | |||||||||||||
The Company’s software & services revenues primarily include revenues from subsidiaries that provide software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. NIC Technologies currently earns a significant portion of its revenues from its contract with the U.S. Department of Transportation, Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a self-funded, transaction-based business model. NIC Technologies recognizes revenue from its contract with the FMCSA (primarily transaction-based information access fees) when the services are provided. NIC Technologies also earns a portion of its revenues from fixed fee and time and materials application development and outsourced maintenance contracts with other government agencies and recognizes revenues as the services are provided. Its contract with the state of Michigan contains a general fiscal funding clause. The Company recognizes revenue under this contract if the probability of cancellation is determined to be a remote contingency. | |||||||||||||
Stock-based compensation | ' | ||||||||||||
Stock-based compensation | |||||||||||||
The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award, and recognizes an expense over the employee’s requisite service period (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. See Note 10 for additional information. | |||||||||||||
Income taxes | ' | ||||||||||||
Income taxes | |||||||||||||
The Company, along with its wholly owned subsidiaries, files a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. | |||||||||||||
The Company does not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable, based on its technical merits. If the recognition threshold is met, the Company recognizes a tax benefit based upon the largest amount of the tax benefit that is greater than 50% likely to be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. | |||||||||||||
Fair value of financial instruments | ' | ||||||||||||
Fair value of financial instruments | |||||||||||||
The carrying values of the Company’s accounts receivable and accounts payable approximate fair value. | |||||||||||||
Comprehensive income | ' | ||||||||||||
Comprehensive income | |||||||||||||
The Company has no material components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is approximately the same as its net income for all periods presented. | |||||||||||||
Earnings per share | ' | ||||||||||||
Earnings per share | |||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. 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. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered participating securities. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled approximately 0.7 million at December 31, 2013, 2012, and 2011. Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 32,038,091 | $ | 26,338,748 | $ | 22,942,482 | |||||||
Less: Income allocated to participating securities | (325,182 | ) | (299,518 | ) | (294,022 | ) | |||||||
Net income available to common stockholders | $ | 31,712,909 | $ | 26,039,230 | $ | 22,648,460 | |||||||
Denominator: | |||||||||||||
Weighted average shares - basic | 64,888,978 | 64,500,244 | 64,017,813 | ||||||||||
Performance-based restricted stock awards | 65,388 | 64,420 | 138,856 | ||||||||||
Weighted average shares - diluted | 64,954,366 | 64,564,664 | 64,156,669 | ||||||||||
Basic net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 | |||||||
Diluted net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 | |||||||
Concentration of credit risk | ' | ||||||||||||
Concentration of credit risk | |||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At December 31, 2013, the amount of cash covered by FDIC deposit insurance was approximately $10.1 million, and approximately $64.1 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable. | |||||||||||||
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. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers. See Note 11. | |||||||||||||
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. | |||||||||||||
Recent accounting pronouncements | ' | ||||||||||||
Recent accounting pronouncements | |||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding the financial statement presentation of an unrecognized tax benefit (“UTB”) when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance requires that an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward except when certain conditions exist. The new guidance is effective for the Company beginning January 1, 2014. The guidance must be applied to all UTBs that exist as of the effective date and may be applied retrospectively to prior reporting periods presented. The Company has evaluated the requirements of this new guidance and does not believe there will be a material impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 32,038,091 | $ | 26,338,748 | $ | 22,942,482 | |||||||
Less: Income allocated to participating securities | (325,182 | ) | (299,518 | ) | (294,022 | ) | |||||||
Net income available to common stockholders | $ | 31,712,909 | $ | 26,039,230 | $ | 22,648,460 | |||||||
Denominator: | |||||||||||||
Weighted average shares - basic | 64,888,978 | 64,500,244 | 64,017,813 | ||||||||||
Performance-based restricted stock awards | 65,388 | 64,420 | 138,856 | ||||||||||
Weighted average shares - diluted | 64,954,366 | 64,564,664 | 64,156,669 | ||||||||||
Basic net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 | |||||||
Diluted net income per share: | |||||||||||||
Net income | $ | 0.49 | $ | 0.4 | $ | 0.35 |
Outsourced_Government_Contract1
Outsourced Government Contracts (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies | ' | |||
The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of December 31, 2013: | ||||
Year Services | Contract Expiration Date | |||
NIC Portal Entity | Portal Website (State) | Commenced | (Renewal Options Through) | |
Wisconsin Interactive Network, LLC | www.wisconsin.gov (Wisconsin) | 2013 | 5/13/2018 (5/13/2023) | |
Pennsylvania Interactive, LLC* | www.pa.gov (Pennsylvania) | 2012 | 11/30/2017 (11/30/2022) | |
NICUSA, OR Division | www.oregon.gov (Oregon) | 2011 | 11/22/21 | |
NICUSA, MD Division | www.maryland.gov (Maryland) | 2011 | 8/10/2016 (8/10/2019) | |
Delaware Interactive, LLC | www.delaware.gov (Delaware) | 2011 | 9/25/2014 (9/25/2017) | |
Mississippi Interactive, LLC | www.ms.gov (Mississippi) | 2011 | 12/31/2015 (12/31/2021) | |
New Jersey Interactive, LLC | www.nj.gov (New Jersey) | 2009 | 6/30/14 | |
Texas NICUSA, LLC | www.Texas.gov (Texas) | 2009 | 8/31/2016 (8/31/2018) | |
West Virginia Interactive, LLC | www.WV.gov (West Virginia) | 2007 | 6/30/14 | |
NICUSA, AZ Division | www.AZ.gov (Arizona) | 2007 | In transition period – 3/26/2014 | |
(6/26/2014) | ||||
Vermont Information Consortium, LLC | www.Vermont.gov (Vermont) | 2006 | 6/8/2016 (6/8/2019) | |
Colorado Interactive, LLC | www.Colorado.gov (Colorado) | 2005 | 5/18/14 | |
South Carolina Interactive, LLC | www.SC.gov (South Carolina) | 2005 | 7/15/14 | |
Kentucky Interactive, LLC | www.Kentucky.gov (Kentucky) | 2003 | 8/31/2014 (8/31/2015) | |
Alabama Interactive, LLC | www.Alabama.gov (Alabama) | 2002 | 2/28/2015 (2/28/2017) | |
Rhode Island Interactive, LLC | www.RI.gov (Rhode Island) | 2001 | 2/28/14 | |
Oklahoma Interactive, LLC | www.OK.gov (Oklahoma) | 2001 | 12/31/14 | |
Montana Interactive, LLC | www.MT.gov (Montana) | 2001 | 12/31/2015 (12/31/2020) | |
NICUSA, TN Division | www.TN.gov (Tennessee) | 2000 | 9/30/2014 (3/30/2016) | |
Hawaii Information Consortium, LLC | www.eHawaii.gov (Hawaii) | 2000 | 1/3/2016 (unlimited 3-year | |
renewal options) | ||||
Idaho Information Consortium, LLC | www.Idaho.gov (Idaho) | 2000 | 6/30/15 | |
Utah Interactive, LLC | www.Utah.gov (Utah) | 1999 | 6/5/2016 (6/5/2019) | |
Maine Information Network, LLC | www.Maine.gov (Maine) | 1999 | 7/1/2016 (3/14/2018) | |
Arkansas Information Consortium, LLC | www.Arkansas.gov (Arkansas) | 1997 | 6/30/18 | |
Iowa Interactive, LLC | www.Iowa.gov (Iowa) | 1997 | 3/31/14 | |
Indiana Interactive, LLC | www.IN.gov (Indiana) | 1995 | 7/1/14 | |
Nebraska Interactive, LLC | www.Nebraska.gov (Nebraska) | 1995 | 1/31/16 | |
Kansas Information Consortium, Inc. | www.Kansas.gov (Kansas) | 1992 | 12/31/2014 (12/31/2017) | |
*See Note 2 for discussion of the Pennsylvania contract. | ||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||||||||||
Intangible assets, net consisted of the following at December 31: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Internal use capitalized | |||||||||||||||||||||||||
software | $ | 5,187,674 | $ | (3,323,377 | ) | $ | 1,864,297 | $ | 3,698,387 | $ | (2,682,541 | ) | $ | 1,015,846 | |||||||||||
Estimated Amortization Expense in Future Years | ' | ||||||||||||||||||||||||
The total estimated intangible asset amortization expense in future years related to assets that have been released into production is as follows: | |||||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||||
2014 | $ | 764,378 | |||||||||||||||||||||||
2015 | 582,831 | ||||||||||||||||||||||||
2016 | 266,053 | ||||||||||||||||||||||||
$ | 1,613,262 |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, Net | ' | ||||||||
Property and equipment, net consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 26,917,914 | $ | 23,745,101 | |||||
Purchased software | 9,782,079 | 8,706,287 | |||||||
Furniture and fixtures | 4,410,355 | 3,916,476 | |||||||
Leasehold improvements | 1,170,354 | 1,096,717 | |||||||
42,280,702 | 37,464,581 | ||||||||
Less accumulated depreciation | (27,113,651 | ) | (21,439,857 | ) | |||||
Property and equipment, net | $ | 15,167,051 | $ | 16,024,724 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Lease Payments Under All Noncancellable Operating Leases | ' | ||||
Future minimum lease payments under all noncancellable operating leases at December 31, 2013 are as follows: | |||||
Fiscal Year | |||||
2014 | $ | 4,078,149 | |||
2015 | 3,529,052 | ||||
2016 | 2,288,001 | ||||
2017 | 1,617,494 | ||||
2018 | 1,413,079 | ||||
Thereafter | 304,354 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income taxes: | |||||||||||||
Federal | $ | 18,436,209 | $ | 14,891,245 | $ | 12,655,924 | |||||||
State | 3,154,439 | 1,211,358 | 2,086,588 | ||||||||||
Total | 21,590,648 | 16,102,603 | 14,742,512 | ||||||||||
Deferred income taxes: | |||||||||||||
Federal | (1,111,536 | ) | 691,961 | 449,566 | |||||||||
State | 41,548 | 42,247 | 338,692 | ||||||||||
Total | (1,069,988 | ) | 734,208 | 788,258 | |||||||||
Total income tax provision | $ | 20,520,660 | $ | 16,836,811 | $ | 15,530,770 | |||||||
Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Amortization of internal use software development costs | $ | 1,461,246 | $ | 1,231,729 | |||||||||
Stock-based compensation | 1,289,584 | 1,270,998 | |||||||||||
Accrued vacation | 762,293 | 576,187 | |||||||||||
Amortization of software intangibles | 638,894 | 1,493,102 | |||||||||||
Federal benefit of state uncertain tax positions | 431,387 | - | |||||||||||
State net operating loss carryforwards | 326,586 | 401,591 | |||||||||||
Deferred rent | 233,923 | 274,857 | |||||||||||
Allowance for doubtful accounts | 226,359 | 236,494 | |||||||||||
Other | 59,912 | 194,556 | |||||||||||
5,430,184 | 5,679,514 | ||||||||||||
Less: Valuation allowance | (310,369 | ) | (291,249 | ) | |||||||||
Total | 5,119,815 | 5,388,265 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation & capitalized internal use software and development costs | (5,382,498 | ) | (5,410,640 | ) | |||||||||
Nonrecurring gain on acquisition of business | (1,130,997 | ) | (1,140,886 | ) | |||||||||
Total | (6,513,495 | ) | (6,551,526 | ) | |||||||||
Net deferred tax liability | $ | (1,393,680 | ) | $ | (1,163,261 | ) | |||||||
Statutory Federal Income Tax Rate and Effective Income Tax Rate Reconciliation | ' | ||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 3.2 | 1 | 4.4 | ||||||||||
Nondeductible expenses | 1.4 | 2.5 | 2 | ||||||||||
Uncertain tax positions | 1.2 | 0.3 | 0.4 | ||||||||||
Federal and state tax credits | (2.0 | ) | - | (1.7 | ) | ||||||||
Other | 0.2 | 0.2 | 0.3 | ||||||||||
Effective federal and state income tax rate | 39 | % | 39 | % | 40.4 | % | |||||||
Reconciliation of Unrecognized Income 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, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at January 1 | $ | 688,575 | $ | 586,606 | $ | 397,825 | |||||||
Additions for tax positions of prior years | 439,550 | 262,865 | 247,429 | ||||||||||
Reductions for tax positions of prior years | - | (347,492 | ) | - | |||||||||
Additions for tax positions of current years | 632,309 | 186,596 | - | ||||||||||
Settlements | - | - | (48,218 | ) | |||||||||
Expiration of the statute of limitations | - | - | (10,430 | ) | |||||||||
Balance at December 31 | $ | 1,760,434 | $ | 688,575 | $ | 586,606 |
StockBased_Compensation_and_Em1
Stock-Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock-based Compensation Expense | ' | ||||||||||||
The following table presents stock-based compensation expense included in the Company’s consolidated statements of income: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of portal revenues, exclusive of | |||||||||||||
depreciation & amortization | $ | 1,100,396 | $ | 997,340 | $ | 907,684 | |||||||
Cost of software & services revenues, | |||||||||||||
exclusive of depreciation & amortization | 48,128 | 61,845 | 63,099 | ||||||||||
Selling & administrative | 2,877,436 | 2,743,387 | 3,538,944 | ||||||||||
Stock-based compensation expense | |||||||||||||
before income taxes | 4,025,960 | 3,802,572 | 4,509,727 | ||||||||||
Income tax benefit | (1,571,867 | ) | (1,482,857 | ) | (1,820,473 | ) | |||||||
Net stock-based compensation expense | $ | 2,454,093 | $ | 2,319,715 | $ | 2,689,254 | |||||||
Restricted Stock Activity | ' | ||||||||||||
A summary of restricted stock activity for the year ended December 31, 2013 is presented below: | |||||||||||||
Restricted | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding at January 1, 2013 | 1,113,868 | $ | 10.41 | ||||||||||
Granted | 405,029 | 16.54 | |||||||||||
Vested | (401,794 | ) | 8.8 | ||||||||||
Canceled | (73,287 | ) | 10.22 | ||||||||||
Outstanding at December 31, 2013 | 1,043,816 | 13.42 | |||||||||||
Assumptions Used to Estimate Grant Date Fair Value Using Black-Scholes Model | ' | ||||||||||||
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. | |||||||||||||
31-Mar-14 | 31-Mar-13 | 31-Mar-12 | |||||||||||
Offering | Offering | Offering | |||||||||||
Risk-free interest rate | 0.14% | 0.19% | 0.27% | ||||||||||
Expected dividend yield | 3.73% | 4.34% | 5.29% | ||||||||||
Expected life | 1.0 year | 1.0 year | 1.0 year | ||||||||||
Expected stock price volatility | 28.84% | 37.30% | 31.26% | ||||||||||
Weighted average fair value of ESPP rights | $ | 4.59 | $ | 3.27 | $ | 3 |
Reportable_Segments_and_Relate1
Reportable Segments and Related Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Financial Information for Reportable Segments | ' | ||||||||||||||||
The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31: | |||||||||||||||||
Outsourced | Other Software & | Other | Consolidated | ||||||||||||||
Portals | Services | Reconciling | Total | ||||||||||||||
Items | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 235,183,005 | $ | 14,095,660 | $ | - | $ | 249,278,665 | |||||||||
Costs & expenses | 153,204,265 | 4,665,185 | 30,466,074 | 188,335,524 | |||||||||||||
Depreciation & amortization | 8,001,597 | 53,475 | 278,017 | 8,333,089 | |||||||||||||
Operating income (loss) | $ | 73,977,143 | $ | 9,377,000 | $ | (30,744,091 | ) | $ | 52,610,052 | ||||||||
2012 | |||||||||||||||||
Revenues | $ | 198,414,662 | $ | 11,757,514 | $ | - | $ | 210,172,176 | |||||||||
Costs & expenses | 131,559,290 | 4,397,608 | 24,504,976 | 160,461,874 | |||||||||||||
Depreciation & amortization | 6,225,114 | 60,557 | 232,861 | 6,518,532 | |||||||||||||
Operating income (loss) | $ | 60,630,258 | $ | 7,299,349 | $ | (24,737,837 | ) | $ | 43,191,770 | ||||||||
2011 | |||||||||||||||||
Revenues | $ | 170,276,434 | $ | 10,622,737 | $ | - | $ | 180,899,171 | |||||||||
Costs & expenses | 110,994,019 | 4,362,317 | 22,136,275 | 137,492,611 | |||||||||||||
Depreciation & amortization | 4,571,950 | 58,108 | 268,430 | 4,898,488 | |||||||||||||
Operating income (loss) | $ | 54,710,465 | $ | 6,202,312 | $ | (22,404,705 | ) | $ | 38,508,072 | ||||||||
Reconciliation of Total Segment Operating Income to Total Consolidated Income before Income Taxes | ' | ||||||||||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Total segment operating income | $ | 83,354,143 | $ | 67,929,607 | $ | 60,912,777 | |||||||||||
Other reconciling items | (30,744,091 | ) | (24,737,837 | ) | (22,404,705 | ) | |||||||||||
Other expense, net | (51,301 | ) | (16,211 | ) | (34,820 | ) | |||||||||||
Consolidated income before income taxes | $ | 52,558,751 | $ | 43,175,559 | $ | 38,473,252 |
Unaudited_Quarterly_Operating_1
Unaudited Quarterly Operating Results (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Operating Results | ' | ||||||||||||||||||||
The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year (on an individual portal basis, and excluding revenues from new outsourced government portal contracts awarded or acquired during the 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. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | 31-Dec-13 | |||||||||||||||||
Revenues: | -1 | ||||||||||||||||||||
Portal revenues | $ | 58,042,459 | $ | 62,093,296 | $ | 57,721,350 | $ | 57,325,900 | $ | 235,183,005 | |||||||||||
Software & services revenues | 3,182,291 | 3,844,035 | 3,608,409 | 3,460,925 | 14,095,660 | ||||||||||||||||
Total revenues | 61,224,750 | 65,937,331 | 61,329,759 | 60,786,825 | 249,278,665 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of portal revenues, exclusive of | |||||||||||||||||||||
depreciation & amortization | 32,761,919 | 34,899,128 | 39,755,133 | 35,638,094 | 143,054,274 | ||||||||||||||||
Cost of software & services revenues, | |||||||||||||||||||||
exclusive of depreciation & | |||||||||||||||||||||
amortization | 1,103,195 | 1,188,765 | 928,301 | 1,136,347 | 4,356,608 | ||||||||||||||||
Selling & administrative | 9,609,051 | 10,057,707 | 10,387,621 | 10,870,263 | 40,924,642 | ||||||||||||||||
Depreciation & amortization | 2,026,623 | 2,049,189 | 2,144,842 | 2,112,435 | 8,333,089 | ||||||||||||||||
Total operating expenses | 45,500,788 | 48,194,789 | 53,215,897 | 49,757,139 | 196,668,613 | ||||||||||||||||
Operating income | 15,723,962 | 17,742,542 | 8,113,862 | 11,029,686 | 52,610,052 | ||||||||||||||||
Other income (expense), net | (19,233 | ) | (1,649 | ) | 4,362 | (34,781 | ) | (51,301 | ) | ||||||||||||
Income before income taxes | 15,704,729 | 17,740,893 | 8,118,224 | 10,994,905 | 52,558,751 | ||||||||||||||||
Income tax provision | 5,747,849 | 6,933,086 | 3,025,500 | 4,814,225 | 20,520,660 | ||||||||||||||||
Net income | $ | 9,956,880 | $ | 10,807,807 | $ | 5,092,724 | $ | 6,180,680 | $ | 32,038,091 | |||||||||||
Basic net income per share | $ | 0.15 | $ | 0.16 | $ | 0.08 | $ | 0.09 | $ | 0.49 | |||||||||||
Diluted net income per share | $ | 0.15 | $ | 0.16 | $ | 0.08 | $ | 0.09 | $ | 0.49 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 64,709,515 | 64,889,767 | 64,961,138 | 64,991,597 | 64,888,978 | ||||||||||||||||
Diluted | 64,709,515 | 64,889,767 | 64,968,858 | 65,060,718 | 64,954,366 | ||||||||||||||||
(1) | The Company’s higher effective tax rate in the fourth quarter of 2013 (44%) was driven primarily by changes in state taxes, including true-ups upon the filing of state returns in the fourth quarter of 2013, which lowered earnings per share by approximately $0.01. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | 31-Dec-12 | |||||||||||||||||
Revenues: | -1 | ||||||||||||||||||||
Portal revenues | $ | 45,711,804 | $ | 49,042,468 | $ | 50,197,700 | $ | 53,462,690 | $ | 198,414,662 | |||||||||||
Software & services revenues | 3,031,317 | 2,939,332 | 3,008,474 | 2,778,391 | 11,757,514 | ||||||||||||||||
Total revenues | 48,743,121 | 51,981,800 | 53,206,174 | 56,241,081 | 210,172,176 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of portal revenues, exclusive of | |||||||||||||||||||||
depreciation & amortization | 28,750,896 | 30,549,948 | 31,794,232 | 32,473,629 | 123,568,705 | ||||||||||||||||
Cost of software & services revenues, | |||||||||||||||||||||
exclusive of depreciation & | |||||||||||||||||||||
amortization | 957,423 | 1,008,078 | 1,079,460 | 996,262 | 4,041,223 | ||||||||||||||||
Selling & administrative | 7,935,303 | 8,382,643 | 8,218,715 | 8,315,285 | 32,851,946 | ||||||||||||||||
Depreciation & amortization | 1,391,337 | 1,400,470 | 1,657,607 | 2,069,118 | 6,518,532 | ||||||||||||||||
Total operating expenses | 39,034,959 | 41,341,139 | 42,750,014 | 43,854,294 | 166,980,406 | ||||||||||||||||
Operating income | 9,708,162 | 10,640,661 | 10,456,160 | 12,386,787 | 43,191,770 | ||||||||||||||||
Other expense, net | (890 | ) | - | - | (15,321 | ) | (16,211 | ) | |||||||||||||
Income before income taxes | 9,707,272 | 10,640,661 | 10,456,160 | 12,371,466 | 43,175,559 | ||||||||||||||||
Income tax provision | 4,079,721 | 4,546,917 | 4,461,320 | 3,748,853 | 16,836,811 | ||||||||||||||||
Net income | $ | 5,627,551 | $ | 6,093,744 | $ | 5,994,840 | $ | 8,622,613 | $ | 26,338,748 | |||||||||||
Basic net income per share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.13 | $ | 0.4 | |||||||||||
Diluted net income per share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.13 | $ | 0.4 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 64,296,996 | 64,488,837 | 64,585,659 | 64,627,150 | 64,500,244 | ||||||||||||||||
Diluted | 64,296,996 | 64,488,837 | 64,603,817 | 64,696,246 | 64,564,664 | ||||||||||||||||
(1) | The Company’s lower effective tax rate (30%) in the fourth quarter of 2012 was due to several factors, including the favorable outcome of an IRS examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes, which increased earnings per share between $0.01 and $0.02. |
The_Company_Additional_Informa
The Company - Additional Information (Detail) | Dec. 31, 2013 |
Categories | |
Nature Of Operations [Line Items] | ' |
Number of business channels | 2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Oct. 28, 2013 | Nov. 30, 2012 | Oct. 24, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Categories | Commonwealth Of Pennsylvania | Internal use capitalized software | Internal use capitalized software | Deposits Assets | Deposits Assets | Furniture and Fixtures | Furniture and Fixtures | Furniture and Fixtures | Equipment | Equipment | Equipment | Equipment | Equipment | Equipment | Purchased Software | Purchased Software | Purchased Software | Purchased Software | Purchased Software | Purchased Software | Leasehold Improvements | Leasehold Improvements | Leasehold Improvements | Leasehold Improvements | ||||||
Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of revenue and cost categories | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for losses on accounts receivable | ' | ' | ' | $5,229,277 | $259,630 | $313,378 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash charge per share after-tax | ' | ' | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in revenue, reclassified prior year | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend declared, date | 28-Oct-13 | 5-Nov-12 | 24-Oct-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend declared per share | $0.35 | $0.25 | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend record, date | 8-Nov-13 | 23-Nov-12 | 19-Dec-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend paid | 23,000,000 | 16,300,000 | 16,200,000 | 22,982,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend paid, date | 2-Jan-14 | 5-Dec-12 | 3-Jan-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | ' | ' | 600,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation method | ' | ' | ' | 'Depreciation is computed using the straight-line method over estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '8 years | '8 years | '10 years | '10 years | '10 years | '3 years | '3 years | '3 years | '5 years | '5 years | '5 years | '3 years | '3 years | '3 years | ' | '5 years | '5 years | '5 years |
Estimated life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The lesser of the term of the lease or 5 years | ' | ' | ' |
Estimated economic useful life, in months | ' | ' | ' | ' | ' | ' | ' | '36 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unearned revenues | ' | ' | ' | 300,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of tax positions expected to be realized upon settlement | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested service-based restricted stock awards included in the calculation of earnings per share | ' | ' | ' | 0.7 | 0.7 | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash subject to FDIC insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash not subject to FDIC insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | $64,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $6,180,680 | $5,092,724 | $10,807,807 | $9,956,880 | $8,622,613 | $5,994,840 | $6,093,744 | $5,627,551 | $32,038,091 | $26,338,748 | $22,942,482 |
Less: Income allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -325,182 | -299,518 | -294,022 |
Net income available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $31,712,909 | $26,039,230 | $22,648,460 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares - basic | 64,991,597 | 64,961,138 | 64,889,767 | 64,709,515 | 64,627,150 | 64,585,659 | 64,488,837 | 64,296,996 | 64,888,978 | 64,500,244 | 64,017,813 |
Performance-based restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | 65,388 | 64,420 | 138,856 |
Weighted average shares - diluted | 65,060,718 | 64,968,858 | 64,889,767 | 64,709,515 | 64,696,246 | 64,603,817 | 64,488,837 | 64,296,996 | 64,954,366 | 64,564,664 | 64,156,669 |
Basic net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 |
Diluted net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 |
Outsourced_Government_Contract2
Outsourced Government Contracts - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Customer | Consolidated Revenues | Consolidated Revenues | New Mexico Interactive, LLC | Department of Game and Inland Fisheries | Office of the Executive Secretary of the Supreme Court of Virginia | Virginia Interactive, LLC | Virginia Interactive, LLC | NICUSA, AZ Division | NICUSA, AZ Division | NICUSA, AZ Division | NICUSA, AZ Division | Outsourced State Portal Contracts | Outsourced State Portal Contracts | State of Kansas | State of Nebraska | State of Vermont | State of Vermont | State of Vermont | State of Rhode Island | State of Rhode Island | State of Wisconsin | State of Wisconsin | State of Idaho | Kentucky | State of New Jersey | State of Iowa | State of Iowa | State of Iowa | State of Arizona | State of Arizona | State of Maine | State of West Virginia | State of West Virginia | State of Oklahoma | US Department of Transportation, Federal Motor Carrier Safety Administration | US Department of Transportation, Federal Motor Carrier Safety Administration | Federal Election Commission | CONNECTICUT | CONNECTICUT |
Contract | Maximum | Extended Term | Consolidated Revenues | Consolidated Revenues | Extended Term | Renewal Term | Contract | Consolidated Revenues | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Extended Term | Renewal Term | Third Extended Term | Extended Term | Renewal Term | |||||||||
Contract | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||||||||||||||||||||||||||||
Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of portal outsourcing contracts that can be terminated by the other party without cause on period of notice | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | 38.00% | 1.00% | ' | ' | ' | ' | 2.00% | ' | 1.00% | ' | ' | ' | 57.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance bond commitments | $6.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of contract | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | '6 months | '3 months | ' | ' | '1 year | '2 years | '3 years | '3 years | '4 months | '5 months | '2 months | '5 years | '5 years | '2 years | '1 year | '1 year | '3 months | '6 months | '3 months | '3 months | '6 months | '2 years | '6 months | '6 months | '1 year | '1 year | '1 year | ' | '3 years | '3 years |
Contract renewal option | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option for the agency to extend the contract | ' | ' | ' | ' | '6 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of federal agencies the Company currently has contracts with to provide outsourced services | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract Expiration Date | ' | ' | ' | ' | ' | ' | 31-Aug-12 | ' | 26-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16-Feb-15 | 30-Jun-13 | ' | ' |
Number of outsourced portal services or software development and services contracts with expiration date within a 12-month period | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contract renewal options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_EnterpriseWide_Port
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies (Detail) | 12 Months Ended | |
Dec. 31, 2013 | ||
NICUSA, AZ Division | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.AZ.gov (Arizona) | |
Year Service Commenced | '2007 | |
Contract Expiration Date | 26-Mar-14 | |
NICUSA, AZ Division | Transition Period Term | ' | |
Contracts [Line Items] | ' | |
Term of contract | 'In transition period - 3/26/2014 (6/26/2014) | |
Wisconsin Interactive Network, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.wisconsin.gov (Wisconsin) | |
Year Service Commenced | '2013 | |
Contract Expiration Date | 13-May-18 | |
Wisconsin Interactive Network, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 13-May-23 | |
Pennsylvania Interactive LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.pa.gov (Pennsylvania) | [1] |
Year Service Commenced | '2012 | [1] |
Contract Expiration Date | 30-Nov-17 | [1] |
Pennsylvania Interactive LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 30-Nov-22 | [1] |
NICUSA, OR Division | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.oregon.gov (Oregon) | |
Year Service Commenced | '2011 | |
Contract Expiration Date | 22-Nov-21 | |
NICUSA, MD Division | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.maryland.gov (Maryland) | |
Year Service Commenced | '2011 | |
Contract Expiration Date | 10-Aug-16 | |
NICUSA, MD Division | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 10-Aug-19 | |
Delaware Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.delaware.gov (Delaware) | |
Year Service Commenced | '2011 | |
Contract Expiration Date | 25-Sep-14 | |
Delaware Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 25-Sep-17 | |
Mississippi Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.ms.gov (Mississippi) | |
Year Service Commenced | '2011 | |
Contract Expiration Date | 31-Dec-15 | |
Mississippi Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 31-Dec-21 | |
New Jersey Interactive LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.nj.gov (New Jersey) | |
Year Service Commenced | '2009 | |
Contract Expiration Date | 30-Jun-14 | |
Texas NICUSA, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Texas.gov (Texas) | |
Year Service Commenced | '2009 | |
Contract Expiration Date | 31-Aug-16 | |
Texas NICUSA, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 31-Aug-18 | |
West Virginia Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.WV.gov (West Virginia) | |
Year Service Commenced | '2007 | |
Contract Expiration Date | 30-Jun-14 | |
Vermont Information Consortium, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Vermont.gov (Vermont) | |
Year Service Commenced | '2006 | |
Contract Expiration Date | 8-Jun-16 | |
Vermont Information Consortium, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 8-Jun-19 | |
Colorado Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Colorado.gov (Colorado) | |
Year Service Commenced | '2005 | |
Contract Expiration Date | 18-May-14 | |
South Carolina Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.SC.gov (South Carolina) | |
Year Service Commenced | '2005 | |
Contract Expiration Date | 15-Jul-14 | |
Kentucky Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Kentucky.gov (Kentucky) | |
Year Service Commenced | '2003 | |
Contract Expiration Date | 31-Aug-14 | |
Kentucky Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 31-Aug-15 | |
Alabama Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Alabama.gov (Alabama) | |
Year Service Commenced | '2002 | |
Contract Expiration Date | 28-Feb-15 | |
Alabama Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 28-Feb-17 | |
Rhode Island Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.RI.gov (Rhode Island) | |
Year Service Commenced | '2001 | |
Rhode Island Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 28-Feb-14 | |
Oklahoma Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.OK.gov (Oklahoma) | |
Year Service Commenced | '2001 | |
Contract Expiration Date | 31-Dec-14 | |
Montana Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.MT.gov (Montana) | |
Year Service Commenced | '2001 | |
Contract Expiration Date | 31-Dec-15 | |
Montana Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 31-Dec-20 | |
NICUSA, TN Division | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.TN.gov (Tennessee) | |
Year Service Commenced | '2000 | |
Contract Expiration Date | 30-Sep-14 | |
NICUSA, TN Division | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 30-Mar-16 | |
Hawaii Information Consortium, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.eHawaii.gov (Hawaii) | |
Year Service Commenced | '2000 | |
Contract Expiration Date | 3-Jan-16 | |
Hawaii Information Consortium, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Term of contract | 'Unlimited 3-year renewal options | |
Idaho Information Consortium, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Idaho.gov (Idaho) | |
Year Service Commenced | '2000 | |
Contract Expiration Date | 30-Jun-15 | |
Utah Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Utah.gov (Utah) | |
Year Service Commenced | '1999 | |
Contract Expiration Date | 5-Jun-16 | |
Utah Interactive, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 5-Jun-19 | |
Maine Information Network, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Maine.gov (Maine) | |
Year Service Commenced | '1999 | |
Contract Expiration Date | 1-Jul-16 | |
Maine Information Network, LLC | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 14-Mar-18 | |
Arkansas Information Consortium, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Arkansas.gov (Arkansas) | |
Year Service Commenced | '1997 | |
Contract Expiration Date | 30-Jun-18 | |
Iowa Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Iowa.gov (Iowa) | |
Year Service Commenced | '1997 | |
Contract Expiration Date | 31-Mar-14 | |
Indiana Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.IN.gov (Indiana) | |
Year Service Commenced | '1995 | |
Contract Expiration Date | 1-Jul-14 | |
Nebraska Interactive, LLC | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Nebraska.gov (Nebraska) | |
Year Service Commenced | '1995 | |
Contract Expiration Date | 31-Jan-16 | |
Kansas Information Consortium, Inc. | ' | |
Contracts [Line Items] | ' | |
Portal Website (State) | 'www.Kansas.gov (Kansas) | |
Year Service Commenced | '1992 | |
Contract Expiration Date | 31-Dec-14 | |
Kansas Information Consortium, Inc. | Renewal Term | ' | |
Contracts [Line Items] | ' | |
Contract Expiration Date | 31-Dec-17 | |
[1] | *See Note 2 for discussion of the Pennsylvania contract. |
Intangible_Assets_Net_Detail
Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Assets Future Amortization Expense Total | $1,613,262 | ' |
Internal use capitalized software | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 5,187,674 | 3,698,387 |
Accumulated Amortization | -3,323,377 | -2,682,541 |
Finite Lived Intangible Assets Future Amortization Expense Total | $1,864,297 | $1,015,846 |
Intangible_Assets_Net_Addition
Intangible Assets, Net - Additional Information (Detail) (Depreciation And Amortization, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation And Amortization | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of internal use capitalized software | $0.60 | $0.60 | $0.60 |
Estimated_Amortization_Expense
Estimated Amortization Expense in Future Years (Detail) (USD $) | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | $764,378 |
2015 | 582,831 |
2016 | 266,053 |
Finite Lived Intangible Assets Future Amortization Expense Total | $1,613,262 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment | $26,917,914 | $23,745,101 |
Purchased software | 9,782,079 | 8,706,287 |
Furniture and fixtures | 4,410,355 | 3,916,476 |
Leasehold improvements | 1,170,354 | 1,096,717 |
Property and equipment, Gross | 42,280,702 | 37,464,581 |
Less accumulated depreciation | -27,113,651 | -21,439,857 |
Property and equipment, net | $15,167,051 | $16,024,724 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | $7.70 | $5.70 | $4 |
Debt_Obligations_and_Collatera1
Debt Obligations and Collateral Requirements - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Debt instrument, covenant compliance | 'The Company was in compliance with each of the covenants listed above at December 31, 2013. |
Performance bond commitments | $6.10 |
Amount that unrestricted cash would have decreased had the Company been required to post 100% cash collateral for the face value of all performance bonds, letters of credit and its line of credit in conjunction with a corporate credit card agreement | 8.7 |
Unsecured Credit Agreement | Covenant Requirement | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Consolidated leverage ratio | 1.5 |
Consolidated minimum annual EBITDA required computed quarterly on a rolling 12-month basis | 12 |
Consolidated tangible net worth required | 36 |
Unsecured Credit Agreement | Revolving Credit Facility | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Credit facility, maximum borrowing capacity | 10 |
Credit facility, expiration date | 1-May-15 |
Credit facility, additional interest above Federal Fund Rate | 0.50% |
Credit facility, interest rate description | 'Interest on amounts borrowed is payable at a base rate or a Eurodollar rate, in each case as defined in the agreement. The base rate is equal to the higher of the Federal Funds Rate plus 0.50% or the bank's prime rate. Fees on outstanding letters of credit are either 1.50% (if the Company's consolidated leverage ratio is less than or equal to 1.251) or 1.75% (if the Company's consolidated leverage ratio is greater than 1.251) of face value per annum. |
Credit facility, outstanding letters of credit | 1.6 |
Credit facility, available capacity to issue additional letters of credit | 3.4 |
Credit facility, available borrowing capacity | 8.4 |
Unsecured Credit Agreement | Revolving Credit Facility | Letter of Credit | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Credit facility, maximum borrowing capacity | 5 |
Unsecured Credit Agreement | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is less than or equal to 1.25:1 | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Fees on outstanding letters of credit | 1.50% |
Consolidated leverage ratio | 1.25 |
Unsecured Credit Agreement | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is greater than 1.25:1 | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Fees on outstanding letters of credit | 1.75% |
Consolidated leverage ratio | 1.25 |
Credit card | ' |
Debt Obligations And Collateral Requirements [Line Items] | ' |
Credit facility, maximum borrowing capacity | $1 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments Under All Noncancellable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
Operating Leased Assets [Line Items] | ' |
2014 | $4,078,149 |
2015 | 3,529,052 |
2016 | 2,288,001 |
2017 | 1,617,494 |
2018 | 1,413,079 |
Thereafter | $304,354 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 11, 2011 | Oct. 11, 2011 | Dec. 31, 2011 | Jul. 29, 2011 | Jul. 29, 2011 | |
Legal Fees and Other Third Party Costs | Legal Fees and Other Third Party Costs | Legal Fees and Other Third Party Costs | Legal Fees and Other Third Party Costs | Legal Fees and Other Third Party Costs | Legal Fees and Other Third Party Costs | Derivative Action | Derivative Action | Derivative Action | Claims that Specify Amount of Damages Sought | Claims that Specify Amount of Damages Sought | ||||||||||||
Directors and Officers Liability Insurance | Directors and Officers Liability Insurance | Directors and Officers Liability Insurance | Mr. Fraser and Audit Committee | Legal Fees and Other Third Party Costs | NIC Technologies, LLC | NIC Technologies, LLC | ||||||||||||||||
Minimum | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense for operating leases | ' | ' | ' | ' | ' | ' | ' | ' | $4,200,000 | $3,800,000 | $3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling & administrative | 10,870,263 | 10,387,621 | 10,057,707 | 9,609,051 | 8,315,285 | 8,218,715 | 8,382,643 | 7,935,303 | 40,924,642 | 32,851,946 | 28,731,758 | 12,800,000 | 4,500,000 | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement from insurance carrier | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | 4,000,000 | 4,500,000 | ' | ' | ' | ' | ' |
Operating income | 11,029,686 | 8,113,862 | 17,742,542 | 15,723,962 | 12,386,787 | 10,456,160 | 10,640,661 | 9,708,162 | 52,610,052 | 43,191,770 | 38,508,072 | 4,000,000 | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Receipt of reimbursement from Mr. Fraser | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000 | 200,000 | ' | ' |
Case contribution and award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' |
Attorney's fees and costs paid to plaintiff's counsel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 495,000 | ' | ' | ' | ' |
Damages sought value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,487,500 |
Paid for settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $195,000 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Oct. 28, 2013 | Nov. 30, 2012 | Oct. 24, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' |
Special cash dividend declared, date | 28-Oct-13 | 5-Nov-12 | 24-Oct-11 | ' | ' |
Special cash dividend record, date | 8-Nov-13 | 23-Nov-12 | 19-Dec-11 | ' | ' |
Special cash dividend declared per share | $0.35 | $0.25 | $0.25 | ' | ' |
Special cash dividend paid | $23,000,000 | $16,300,000 | $16,200,000 | $22,982,447 | ' |
Special cash dividend paid, date | 2-Jan-14 | 5-Dec-12 | 3-Jan-12 | ' | ' |
Outstanding shares of common stock | 64,987,854 | 64,623,372 | 64,173,368 | 64,992,587 | 64,628,105 |
Dividend equivalent paid per share on unvested shares of restricted stock outstanding on the dividend record date granted under the Company's 2006 Stock Option and Incentive Plan | $0.35 | $0.25 | $0.25 | ' | ' |
Unvested shares of restricted stock on the dividend record date | 676,281 | 727,354 | 750,497 | ' | ' |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Current income taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $18,436,209 | $14,891,245 | $12,655,924 | ||
State | ' | ' | ' | ' | ' | ' | ' | ' | 3,154,439 | 1,211,358 | 2,086,588 | ||
Total | ' | ' | ' | ' | ' | ' | ' | ' | 21,590,648 | 16,102,603 | 14,742,512 | ||
Deferred income taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -1,111,536 | 691,961 | 449,566 | ||
State | ' | ' | ' | ' | ' | ' | ' | ' | 41,548 | 42,247 | 338,692 | ||
Total | ' | ' | ' | ' | ' | ' | ' | ' | -1,069,988 | 734,208 | 788,258 | ||
Total income tax provision | $4,814,225 | [1] | $3,025,500 | $6,933,086 | $5,747,849 | $3,748,853 | [2] | $4,461,320 | $4,546,917 | $4,079,721 | $20,520,660 | $16,836,811 | $15,530,770 |
[1] | The Company's higher effective tax rate in the fourth quarter of 2013 (44%) was driven primarily by changes in state taxes, including true-ups upon the filing of state returns in the fourth quarter of 2013, which lowered earnings per share by approximately $0.01. | ||||||||||||
[2] | The Company's lower effective tax rate (30%) in the fourth quarter of 2012 was due to several factors, including the favorable outcome of an IRS examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes, which increased earnings per share between $0.01 and $0.02. |
Deferred_Income_Tax_Assets_and
Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Amortization of internal use software development costs | $1,461,246 | $1,231,729 |
Stock-based compensation | 1,289,584 | 1,270,998 |
Accrued vacation | 762,293 | 576,187 |
Amortization of software intangibles | 638,894 | 1,493,102 |
Federal benefit of state uncertain tax positions | 431,387 | ' |
State net operating loss carryforwards | 326,586 | 401,591 |
Deferred rent | 233,923 | 274,857 |
Allowance for doubtful accounts | 226,359 | 236,494 |
Other | 59,912 | 194,556 |
Deferred Tax Assets, Gross, Total | 5,430,184 | 5,679,514 |
Less: Valuation allowance | -310,369 | -291,249 |
Total | 5,119,815 | 5,388,265 |
Deferred tax liabilities: | ' | ' |
Depreciation & capitalized internal use software and development costs | -5,382,498 | -5,410,640 |
Nonrecurring gain on acquisition of business | -1,130,997 | -1,140,886 |
Total | -6,513,495 | -6,551,526 |
Net deferred tax liability | ($1,393,680) | ($1,163,261) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Deferred tax asset valuation allowance | $310,369 | $291,249 |
Nonrecurring gain on acquisition of business | 1,130,997 | 1,140,886 |
Federal tax credit | $300,000 | $500,000 |
Internal Revenue Service (IRS) | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax examinations | '2010 | ' |
Remaining years subject to tax examination | 'The Company remains subject to U.S. federal examination for the tax years ended on or after December 31, 2010. Additionally, any net operating losses that were generated in prior years and utilized through 2010 may also be subject to examination by the IRS. | ' |
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 | ' |
Statutory_Federal_Income_Tax_R
Statutory Federal Income Tax Rate and the Effective Income Tax Rate Reconciliation (Detail) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' | ' | ' | ' |
Statutory federal income tax rate | ' | ' | 35.00% | 35.00% | 35.00% |
State income taxes | ' | ' | 3.20% | 1.00% | 4.40% |
Nondeductible expenses | ' | ' | 1.40% | 2.50% | 2.00% |
Uncertain tax positions | ' | ' | 1.20% | 0.30% | 0.40% |
Federal and state tax credits | ' | ' | -2.00% | ' | -1.70% |
Other | ' | ' | 0.20% | 0.20% | 0.30% |
Effective federal and state income tax rate | 44.00% | 30.00% | 39.00% | 39.00% | 40.40% |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Income Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Beginning balance | $688,575 | $586,606 | $397,825 |
Additions for tax positions of prior years | 439,550 | 262,865 | 247,429 |
Reductions for tax positions of prior years | ' | -347,492 | ' |
Additions for tax positions of current years | 632,309 | 186,596 | ' |
Settlements | ' | ' | -48,218 |
Expiration of the statute of limitations | ' | ' | -10,430 |
Ending balance | $1,760,434 | $688,575 | $586,606 |
Stock_Based_Compensation_Expen
Stock Based Compensation Expenses (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense before income taxes | $4,025,960 | $3,802,572 | $4,509,727 |
Income tax benefit | -1,571,867 | -1,482,857 | -1,820,473 |
Net stock-based compensation expense | 2,454,093 | 2,319,715 | 2,689,254 |
Cost of portal revenues, exclusive of depreciation & amortization | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense before income taxes | 1,100,396 | 997,340 | 907,684 |
Cost of software & services revenues, exclusive of depreciation & amortization | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense before income taxes | 48,128 | 61,845 | 63,099 |
Selling & administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense before income taxes | $2,877,436 | $2,743,387 | $3,538,944 |
StockBased_Compensation_and_Em2
Stock-Based Compensation and Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation shares authorized for future grant | 3,746,926 | ' | ' | ' | ' | ' |
Tax deductions relating to stock-based compensation | $1,302,005 | ' | $1,351,115 | ' | $1,509,039 | ' |
Proceeds from employee common stock purchases | 904,471 | ' | 806,010 | ' | 651,600 | ' |
Defined Contribution 401(k) Profit Sharing Plan | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Matching contribution to 401k, maximum | 5.00% | ' | ' | ' | ' | ' |
Company matching contribution expense | 1,800,000 | ' | 1,700,000 | ' | 1,500,000 | ' |
Restricted Stock | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award shares granted in period | 405,029 | ' | ' | ' | ' | ' |
Share based compensation award granted in period weighted average fair value at grant date, per share | $16.54 | ' | $11.83 | ' | $10.61 | ' |
Share based compensation fair value of restricted stock vested | 3,500,000 | ' | 3,600,000 | ' | 3,600,000 | ' |
Unrecognized compensation related to equity-based awards that have yet to vest | 6,700,000 | ' | ' | ' | ' | ' |
Unrecognized compensation costs are expected to be recognized over a weighted average period (years) | '2 years 6 months | ' | ' | ' | ' | ' |
Restricted Stock | Service Based Awards | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award vesting period from date of grant in cumulative installments | '1 year | ' | '1 year | ' | '1 year | ' |
Share based compensation award cumulative annual installment vesting rate | 25.00% | ' | 25.00% | ' | 25.00% | ' |
Share based compensation award shares granted in period | 289,333 | ' | ' | ' | ' | ' |
Share based compensation award granted in period grant-date fair value | 4,800,000 | ' | ' | ' | ' | ' |
Performance-Based Restricted Stock | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award vesting period from date of grant in cumulative installments | '3 years | ' | ' | ' | ' | ' |
Share based compensation award shares granted in period | 115,696 | ' | ' | ' | ' | ' |
Share based compensation award granted in period grant-date fair value | 1,900,000 | ' | ' | ' | ' | ' |
Share based compensation award granted in period weighted average fair value at grant date, per share | $16.24 | ' | ' | ' | ' | ' |
Share based compensation award end date of the a three-year performance period | 31-Dec-15 | ' | ' | ' | ' | ' |
Performance criteria over the performance period | 'The actual number of shares earned will be based on the Company's performance related to the following performance criteria over the performance period Operating income growth (three-year compound annual growth rate); Total consolidated revenue growth (three-year compound annual growth rate); and Cash flow return on invested capital (three-year average). | ' | ' | ' | ' | ' |
Performance-Based Restricted Stock | Performance Period 2010 to 2012 | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award shares earned in period | ' | ' | 78,747 | ' | ' | ' |
Share based compensation dividend earned on shares subject to the awards, shares | ' | ' | 8,013 | ' | ' | ' |
Share based compensation performance-based restricted stock awards, vesting date | ' | ' | 1-Feb-13 | ' | ' | ' |
Share based compensation performance-based restricted stock awards, grant date | ' | ' | 1-Feb-10 | ' | ' | ' |
Performance-Based Restricted Stock | Performance Period Twenty Zero Nine To Twenty Eleven | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award shares earned in period | ' | ' | ' | ' | 172,751 | ' |
Share based compensation dividend earned on shares subject to the awards, shares | ' | ' | ' | ' | 25,008 | ' |
Share based compensation performance-based restricted stock awards, vesting date | ' | ' | ' | ' | 3-Feb-12 | ' |
Share based compensation performance-based restricted stock awards, grant date | ' | ' | ' | ' | 3-Feb-09 | ' |
Performance-Based Restricted Stock | Performance Period 2011 to 2013 | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation award shares earned in period | 85,365 | ' | ' | ' | ' | ' |
Share based compensation dividend earned on shares subject to the awards, shares | 4,350 | ' | ' | ' | ' | ' |
Share based compensation performance-based restricted stock awards, vesting date | 7-Mar-14 | ' | ' | ' | ' | ' |
Share based compensation performance-based restricted stock awards, grant date | 7-Mar-11 | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' |
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' |
Share based compensation shares authorized for grant | 2,321,688 | ' | ' | ' | ' | ' |
Percentage of compensation that eligible employees can use to purchase common stock, maximum | 15.00% | ' | 15.00% | ' | 15.00% | ' |
Compensation Amount that eligible employees can use to purchase common stock | 25,000 | ' | 25,000 | ' | 25,000 | ' |
Percentage of fair market value eligible employees can purchase common stock as defined, minimum | 85.00% | ' | 85.00% | ' | 85.00% | ' |
Employee stock purchase plan, shares purchased | ' | 87,578 | ' | 78,045 | ' | 103,593 |
Employee stock purchase plan, per share price | ' | $10.33 | ' | $10.33 | ' | $6.29 |
Proceeds from employee common stock purchases | ' | $904,000 | ' | $806,000 | ' | $652,000 |
Closing fair market value of common stock on first day of current offering period | ' | $19.12 | ' | ' | ' | ' |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock | ' | ' | ' |
Number of Shares | ' | ' | ' |
Outstanding beginning of period | 1,113,868 | ' | ' |
Granted | 405,029 | ' | ' |
Vested | -401,794 | ' | ' |
Canceled | -73,287 | ' | ' |
Outstanding at end of period | 1,043,816 | 1,113,868 | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding beginning of period | $10.41 | ' | ' |
Granted | $16.54 | $11.83 | $10.61 |
Vested | $8.80 | ' | ' |
Canceled | $10.22 | ' | ' |
Outstanding at end of period | $13.42 | $10.41 | ' |
Assumptions_Used_to_Estimate_G
Assumptions Used to Estimate Grant Date Fair Value Using the Black-Scholes Model (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | |
Scenario, Forecast | |||
Employee Stock Purchase Plan, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.19% | 0.27% | 0.14% |
Expected dividend yield | 4.34% | 5.29% | 3.73% |
Expected life | '1 year | '1 year | '1 year |
Expected stock price volatility | 37.30% | 31.26% | 28.84% |
Weighted average fair value of ESPP rights | $3.27 | $3 | $4.59 |
Reportable_Segments_and_Relate2
Reportable Segments and Related Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 1 | ' | ' |
Consolidated Revenues | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 38.00% | ' | ' |
Product Concentration Risk | Consolidated Revenues | Outsourced Portals - DMV Transaction - Based | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 34.00% | 34.00% | 36.00% |
Product Concentration Risk | Consolidated Revenues | Motor Vehicle Registration And Licensing | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 13.00% | 10.00% | ' |
Customer Concentration Risk | Data Resellers | Consolidated Revenues | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 22.00% | 23.00% | 28.00% |
Customer Concentration Risk | Data Resellers | Accounts Receivable | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 23.00% | 21.00% | ' |
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 23.00% | 21.00% | 21.00% |
Summary_of_Financial_Informati
Summary of Financial Information for Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $60,786,825 | $61,329,759 | $65,937,331 | $61,224,750 | $56,241,081 | $53,206,174 | $51,981,800 | $48,743,121 | $249,278,665 | $210,172,176 | $180,899,171 |
Costs & expenses | ' | ' | ' | ' | ' | ' | ' | ' | 188,335,524 | 160,461,874 | 137,492,611 |
Depreciation & amortization | 2,112,435 | 2,144,842 | 2,049,189 | 2,026,623 | 2,069,118 | 1,657,607 | 1,400,470 | 1,391,337 | 8,333,089 | 6,518,532 | 4,898,488 |
Operating income | 11,029,686 | 8,113,862 | 17,742,542 | 15,723,962 | 12,386,787 | 10,456,160 | 10,640,661 | 9,708,162 | 52,610,052 | 43,191,770 | 38,508,072 |
Outsourced Portals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 235,183,005 | 198,414,662 | 170,276,434 |
Costs & expenses | ' | ' | ' | ' | ' | ' | ' | ' | 153,204,265 | 131,559,290 | 110,994,019 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,001,597 | 6,225,114 | 4,571,950 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 73,977,143 | 60,630,258 | 54,710,465 |
Other Software & Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 14,095,660 | 11,757,514 | 10,622,737 |
Costs & expenses | ' | ' | ' | ' | ' | ' | ' | ' | 4,665,185 | 4,397,608 | 4,362,317 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | 53,475 | 60,557 | 58,108 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 9,377,000 | 7,299,349 | 6,202,312 |
Other Reconciling Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs & expenses | ' | ' | ' | ' | ' | ' | ' | ' | 30,466,074 | 24,504,976 | 22,136,275 |
Depreciation & amortization | ' | ' | ' | ' | ' | ' | ' | ' | 278,017 | 232,861 | 268,430 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ($30,744,091) | ($24,737,837) | ($22,404,705) |
Reconciliation_of_Total_Segmen
Reconciliation of Total Segment Operating Income to Total Consolidated Income before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | $11,029,686 | $8,113,862 | $17,742,542 | $15,723,962 | $12,386,787 | $10,456,160 | $10,640,661 | $9,708,162 | $52,610,052 | $43,191,770 | $38,508,072 |
Other expense, net | -34,781 | 4,362 | -1,649 | -19,233 | -15,321 | ' | ' | -890 | -51,301 | -16,211 | -34,820 |
Consolidated income before income taxes | 10,994,905 | 8,118,224 | 17,740,893 | 15,704,729 | 12,371,466 | 10,456,160 | 10,640,661 | 9,707,272 | 52,558,751 | 43,175,559 | 38,473,252 |
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 83,354,143 | 67,929,607 | 60,912,777 |
Other Reconciling Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($30,744,091) | ($24,737,837) | ($22,404,705) |
Quarterly_Operating_Results_De
Quarterly Operating Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Portal revenues | $57,325,900 | $57,721,350 | $62,093,296 | $58,042,459 | $53,462,690 | $50,197,700 | $49,042,468 | $45,711,804 | $235,183,005 | $198,414,662 | $170,276,434 | ||
Software & services revenues | 3,460,925 | 3,608,409 | 3,844,035 | 3,182,291 | 2,778,391 | 3,008,474 | 2,939,332 | 3,031,317 | 14,095,660 | 11,757,514 | 10,622,737 | ||
Total revenues | 60,786,825 | 61,329,759 | 65,937,331 | 61,224,750 | 56,241,081 | 53,206,174 | 51,981,800 | 48,743,121 | 249,278,665 | 210,172,176 | 180,899,171 | ||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cost of portal revenues, exclusive of depreciation & amortization | 35,638,094 | 39,755,133 | 34,899,128 | 32,761,919 | 32,473,629 | 31,794,232 | 30,549,948 | 28,750,896 | 143,054,274 | 123,568,705 | 104,729,936 | ||
Cost of software & services revenues, exclusive of depreciation & amortization | 1,136,347 | 928,301 | 1,188,765 | 1,103,195 | 996,262 | 1,079,460 | 1,008,078 | 957,423 | 4,356,608 | 4,041,223 | 4,030,917 | ||
Selling & administrative | 10,870,263 | 10,387,621 | 10,057,707 | 9,609,051 | 8,315,285 | 8,218,715 | 8,382,643 | 7,935,303 | 40,924,642 | 32,851,946 | 28,731,758 | ||
Depreciation & amortization | 2,112,435 | 2,144,842 | 2,049,189 | 2,026,623 | 2,069,118 | 1,657,607 | 1,400,470 | 1,391,337 | 8,333,089 | 6,518,532 | 4,898,488 | ||
Total operating expenses | 49,757,139 | 53,215,897 | 48,194,789 | 45,500,788 | 43,854,294 | 42,750,014 | 41,341,139 | 39,034,959 | 196,668,613 | 166,980,406 | 142,391,099 | ||
Operating income | 11,029,686 | 8,113,862 | 17,742,542 | 15,723,962 | 12,386,787 | 10,456,160 | 10,640,661 | 9,708,162 | 52,610,052 | 43,191,770 | 38,508,072 | ||
Other income (expense), net | -34,781 | 4,362 | -1,649 | -19,233 | -15,321 | ' | ' | -890 | -51,301 | -16,211 | -34,820 | ||
Income before income taxes | 10,994,905 | 8,118,224 | 17,740,893 | 15,704,729 | 12,371,466 | 10,456,160 | 10,640,661 | 9,707,272 | 52,558,751 | 43,175,559 | 38,473,252 | ||
Income tax provision | 4,814,225 | [1] | 3,025,500 | 6,933,086 | 5,747,849 | 3,748,853 | [2] | 4,461,320 | 4,546,917 | 4,079,721 | 20,520,660 | 16,836,811 | 15,530,770 |
Net income | $6,180,680 | $5,092,724 | $10,807,807 | $9,956,880 | $8,622,613 | $5,994,840 | $6,093,744 | $5,627,551 | $32,038,091 | $26,338,748 | $22,942,482 | ||
Basic net income per share | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 | ||
Diluted net income per share | $0.09 | $0.08 | $0.16 | $0.15 | $0.13 | $0.09 | $0.09 | $0.09 | $0.49 | $0.40 | $0.35 | ||
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic | 64,991,597 | 64,961,138 | 64,889,767 | 64,709,515 | 64,627,150 | 64,585,659 | 64,488,837 | 64,296,996 | 64,888,978 | 64,500,244 | 64,017,813 | ||
Diluted | 65,060,718 | 64,968,858 | 64,889,767 | 64,709,515 | 64,696,246 | 64,603,817 | 64,488,837 | 64,296,996 | 64,954,366 | 64,564,664 | 64,156,669 | ||
[1] | The Company's higher effective tax rate in the fourth quarter of 2013 (44%) was driven primarily by changes in state taxes, including true-ups upon the filing of state returns in the fourth quarter of 2013, which lowered earnings per share by approximately $0.01. | ||||||||||||
[2] | The Company's lower effective tax rate (30%) in the fourth quarter of 2012 was due to several factors, including the favorable outcome of an IRS examination and the related decrease in the liability for uncertain tax positions, along with changes in state taxes, which increased earnings per share between $0.01 and $0.02. |
Quarterly_Operating_Results_Pa
Quarterly Operating Results (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' |
Effective tax rate | 44.00% | 30.00% | 39.00% | 39.00% | 40.40% |
Reduction in the earnings per share | $0.01 | ' | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' |
Increase in the earnings per share | ' | 0.01 | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' |
Increase in the earnings per share | ' | 0.02 | ' | ' | ' |