Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 23, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'EGOV | ' |
Entity Registrant Name | 'NIC INC | ' |
Entity Central Index Key | '0001065332 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 65,262,048 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $95,658 | $74,245 |
Cash restricted for payment of dividend | ' | 22,982 |
Trade accounts receivable, net | 61,211 | 52,818 |
Deferred income taxes, net | 1,028 | 1,038 |
Prepaid expenses & other current assets | 10,558 | 11,569 |
Total current assets | 168,455 | 162,652 |
Property and equipment, net | 13,674 | 15,167 |
Intangible assets, net | 2,062 | 1,864 |
Other assets | 332 | 290 |
Total assets | 184,523 | 179,973 |
Current liabilities: | ' | ' |
Accounts payable | 45,817 | 39,112 |
Accrued expenses | 18,384 | 20,822 |
Dividend payable | ' | 22,982 |
Other current liabilities | 450 | 348 |
Total current liabilities | 64,651 | 83,264 |
Deferred income taxes, net | 2,287 | 2,432 |
Other long-term liabilities | 2,754 | 2,341 |
Total liabilities | 69,692 | 88,037 |
Commitments and contingencies (Notes 1 and 2) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.0001 par, 200,000 shares authorized, 65,260 and 64,993 shares issued and outstanding | 6 | 6 |
Additional paid-in capital | 90,887 | 88,397 |
Retained earnings | 23,938 | 3,533 |
Total stockholders' equity | 114,831 | 91,936 |
Total liabilities and stockholders' equity | $184,523 | $179,973 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common stock, par | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 65,260,000 | 64,993,000 |
Common stock, shares outstanding | 65,260,000 | 64,993,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Portal revenues | $66,809 | $62,094 | $128,291 | $120,136 |
Software & services revenues | 4,346 | 3,844 | 8,261 | 7,026 |
Total revenues | 71,155 | 65,938 | 136,552 | 127,162 |
Operating expenses: | ' | ' | ' | ' |
Cost of portal revenues, exclusive of depreciation & amortization | 38,533 | 34,899 | 74,930 | 67,661 |
Cost of software & services revenues, exclusive of depreciation & amortization | 1,214 | 1,189 | 2,174 | 2,292 |
Selling & administrative | 10,864 | 10,058 | 21,165 | 19,667 |
Depreciation & amortization | 2,277 | 2,049 | 4,527 | 4,076 |
Total operating expenses | 52,888 | 48,195 | 102,796 | 93,696 |
Operating income | 18,267 | 17,743 | 33,756 | 33,466 |
Other expense, net | -24 | -2 | -128 | -21 |
Income before income taxes | 18,243 | 17,741 | 33,628 | 33,445 |
Income tax provision | 7,213 | 6,933 | 13,223 | 12,681 |
Net income | $11,030 | $10,808 | $20,405 | $20,764 |
Basic net income per share (Note 1) | $0.17 | $0.16 | $0.31 | $0.32 |
Diluted net income per share (Note 1) | $0.17 | $0.16 | $0.31 | $0.32 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 65,245 | 64,890 | 65,151 | 64,800 |
Diluted | 65,245 | 64,890 | 65,151 | 64,800 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
In Thousands | ||||
Beginning Balance at Dec. 31, 2013 | $91,936 | $6 | $88,397 | $3,533 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 64,993 | ' | ' |
Net income | 20,405 | ' | ' | 20,405 |
Restricted stock vestings (in shares) | ' | 294 | ' | ' |
Restricted stock vestings | 73 | ' | 73 | ' |
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards | 35 | ' | 35 | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | ' | -95 | ' | ' |
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | -1,928 | ' | -1,928 | ' |
Stock-based compensation | 2,414 | ' | 2,414 | ' |
Tax deductions relating to stock-based compensation | 897 | ' | 897 | ' |
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards | -108 | ' | -108 | ' |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 68 | ' | ' |
Issuance of common stock under employee stock purchase plan | 1,107 | ' | 1,107 | ' |
Ending Balance at Jun. 30, 2014 | $114,831 | $6 | $90,887 | $23,938 |
Ending Balance (in shares) at Jun. 30, 2014 | ' | 65,260 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $20,405 | $20,764 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation & amortization | 4,527 | 4,076 |
Stock-based compensation expense | 2,414 | 2,077 |
Deferred income taxes | -1,494 | -820 |
Loss on disposal of property and equipment | 128 | 21 |
Changes in operating assets and liabilities: | ' | ' |
(Increase) in trade accounts receivable, net | -8,393 | -14,349 |
Decrease in prepaid expenses & other current assets | 2,370 | 3,133 |
(Increase) in other assets | -42 | -2 |
Increase in accounts payable | 6,705 | 4,556 |
(Decrease) in accrued expenses | -4,416 | -1,672 |
Increase in other current liabilities | 102 | 1,180 |
Increase in other long-term liabilities | 413 | 714 |
Net cash provided by operating activities | 22,719 | 19,678 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -2,653 | -2,258 |
Capitalized internal use software development costs | -657 | -730 |
Net cash used in investing activities | -3,310 | -2,988 |
Cash flows from financing activities: | ' | ' |
Proceeds from employee common stock purchases | 1,107 | 904 |
Tax deductions related to stock-based compensation | 897 | 736 |
Net cash provided by financing activities | 2,004 | 1,640 |
Net increase in cash | 21,413 | 18,330 |
Cash, beginning of period | 74,245 | 62,358 |
Cash, end of period | 95,658 | 80,688 |
Non-cash investing activities: | ' | ' |
Capital expenditures accrued but not yet paid | 50 | 86 |
Cash payments: | ' | ' |
Income taxes paid | 13,837 | 6,194 |
Cash dividends on common stock previously restricted for payment of dividend | $22,982 | ' |
THE_COMPANY_AND_SUMMARY_OF_SIG
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
The Company | |||||||||||||||||
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 2), 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 2). | |||||||||||||||||
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), 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. 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 expenses 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 expenses also consist of stock-based compensation and corporate-level expenses for market development and public relations. For the three- and six-month periods ended June 30, 2013, selling & administrative expenses also include legal fees and other third-party costs, net of directors’ and officers’ liability insurance received, incurred in connection with the previously disclosed SEC matter, which was successfully concluded in December 2013 (see Item 3, Legal Proceedings, and Note 7 in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 27, 2014). | |||||||||||||||||
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 and 0.8 million at June 30, 2014 and 2013, respectively. 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 (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 11,030 | $ | 10,808 | $ | 20,405 | $ | 20,764 | |||||||||
Less: Income allocated to participating securities | (109 | ) | (118 | ) | (203 | ) | (230 | ) | |||||||||
Net income available to common stockholders | $ | 10,921 | $ | 10,690 | $ | 20,202 | $ | 20,534 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Performance-based restricted stock awards | - | - | - | - | |||||||||||||
Weighted average shares - diluted | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Basic net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 | |||||||||
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 June 30, 2014, the amount of cash covered by FDIC deposit insurance was approximately $10.7 million, and approximately $85.0 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. | |||||||||||||||||
Recent accounting pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and thereby improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2017, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements. |
OUTSOURCED_GOVERNMENT_CONTRACT
OUTSOURCED GOVERNMENT CONTRACTS | 6 Months Ended | |||
Jun. 30, 2014 | ||||
OUTSOURCED GOVERNMENT CONTRACTS | ' | |||
2. 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 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 was not renewed after a defined term or if the contract was terminated by the 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 the Company breaches a material contractual obligation and fails to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 17 contracts under which the Company provides 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 59% and 58%, respectively, of the Company’s total consolidated revenues for the three- and six-month periods ended June 30, 2014. 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 states of Arizona and Delaware. | ||||
At June 30, 2014, the Company was bound by performance bond commitments totaling approximately $6.6 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. | ||||
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: | ||||
Year Services | Contract Expiration Date | |||
NIC Portal Entity | Portal Website (State) | Commenced | (Renewal Options Through) | |
Connecticut Interactive, LLC | www.ct.gov (Connecticut) | 2014 | 1/9/2017 (1/9/2020) | |
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 | 9/30/14 | |
Mississippi Interactive, LLC | www.ms.gov (Mississippi) | 2011 | 12/31/2015 (12/31/2021) | |
New Jersey Interactive, LLC | www.nj.gov (New Jersey) | 2009 | 10/30/14 | |
Texas NICUSA, LLC | www.Texas.gov (Texas) | 2009 | 8/31/2016 (8/31/2018) | |
West Virginia Interactive, LLC | www.WV.gov (West Virginia) | 2007 | 6/30/2014 (contract has been temporarily extended to allow the state time to finalize contract terms and conditions) | |
Vermont Information Consortium, LLC | www.Vermont.gov (Vermont) | 2006 | 6/8/2016 (6/8/2019) | |
Colorado Interactive, LLC | www.Colorado.gov (Colorado) | 2005 | 4/30/2019 (4/30/2023) | |
South Carolina Interactive, LLC | www.SC.gov (South Carolina) | 2005 | 7/15/2019 (7/15/2021) | |
Kentucky Interactive, LLC | www.Kentucky.gov (Kentucky) | 2003 | 8/31/15 | |
Alabama Interactive, LLC | www.Alabama.gov (Alabama) | 2002 | 2/28/2015 (2/28/2017) | |
Rhode Island Interactive, LLC | www.RI.gov (Rhode Island) | 2001 | 7/1/2017 (7/1/2019) | |
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 (7/1/2018) | |
Arkansas Information Consortium, LLC | www.Arkansas.gov (Arkansas) | 1997 | 6/30/18 | |
Iowa Interactive, LLC | www.Iowa.gov (Iowa) | 1997 | 6/30/2016 (6/30/2020) | |
Indiana Interactive, LLC | www.IN.gov (Indiana) | 1995 | 7/31/16 | |
Nebraska Interactive, LLC | www.Nebraska.gov (Nebraska) | 1995 | 1/31/16 | |
Kansas Information Consortium, Inc. | www.Kansas.gov (Kansas) | 1992 | 12/31/2021 (annual 1-year renewal options) | |
During the first quarter of 2014, the Company was awarded a three-year contract by 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 was awarded a new five-year contract from the state of Colorado, which includes an option for the government to extend the contract up to an additional four years. | ||||
During the second quarter of 2014, the Company was awarded a new three-year contract by the state of Rhode Island, which includes renewal options for the government to extend the contract for two additional one-year periods. In addition, the Company was awarded a new two-year contract by the state of Iowa, which includes renewal options for the government to extend the contract for four additional one-year periods. The Company also received a one-year contract extension from the Commonwealth of Kentucky. | ||||
During the third quarter of 2014, the Company was awarded a new seven-year contract by the state of Kansas, which includes annual renewal options for the government to extend the contract for additional one-year periods. In addition, the Company executed a two-year contract extension with the state of Indiana. The Company was also awarded a new five-year contract by the state of South Carolina, which includes renewal options for the government to extend the contract up to an additional two years. | ||||
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 third quarter of 2014, the Company was awarded a new two-year contract by the MVD to manage eGovernment services through June 30, 2016. The contract includes a renewal option for the government to extend the contract for two additional one-year periods. | ||||
During the second quarter of 2013, the Company’s subsidiary, Virginia Interactive, LLC (“VI”), signed an agreement with the Virginia 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 | ||||
The Company’s subsidiary, NIC Technologies, LLC (“NIC Technologies”) has a contract with the Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using the self-funded, transaction-based business model. During the first quarter of 2014, the FMCSA exercised the fourth of its four one-year renewal options for the PSP contract, extending its term through February 16, 2015. During the third quarter of 2014, the Company received a six-month contract extension from the FMCSA, extending its term through August 16, 2015. | ||||
The PSP contract expires August 16, 2015, and the contract can be terminated by the FMCSA without cause prior to expiration 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 June 30, 2014, there were 12 contracts under which the Company provides outsourced portal services or software development and services that have expiration dates within the 12-month period following June 30, 2014. Collectively, revenues generated from these contracts represented 32% and 31% of the Company’s total consolidated revenues for the three- and six-month periods ended June 30, 2014. 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. | ||||
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. NICUSA provided transition services as required by the contract through March 26, 2014. The costs 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, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the three- and six-months ended June 30, 2014, revenues from the legacy Arizona portal contract were $0 and approximately $0.8 million, respectively. For the three- and six-months ended June 30, 2013, revenues from the legacy Arizona portal contract were approximately $1.1 million and $2.0 million, respectively. | ||||
The Company’s subsidiary, Delaware Interactive, LLC (“DI”), has a contract with the state of Delaware to manage the state’s official government portal through September 30, 2014. Currently, the primary revenue source for DI under the contract is an annual portal management fee of approximately $2.2 million paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it does not intend to renew its contact with DI when the current contract term expires. The Company does not believe the expiration of its contract with the state of Delaware will have a material impact on the Company’s consolidated results of operations, cash flows or financial condition. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
STOCKHOLDERS' EQUITY | ' |
3. 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. 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 the dividends declared, 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 performance-based restricted stock were earned. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||||||
4. STOCK BASED COMPENSATION | |||||||||||||||||
During the three- and six-month periods ended June 30, 2014, the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 7,416 shares and 233,466 shares, respectively, with a grant-date fair value totaling approximately $0.1 million and $4.5 million, respectively. Such restricted stock awards vest beginning one year from the date of grant in cumulative annual installments of 25%. In addition, during the three-month period ended June 30, 2014, non-employee directors of the Company were granted service-based restricted stock awards totaling 39,560 shares with a grant-date fair value totaling approximately $0.7 million. Such restricted stock awards vest one year from the date of grant. Restricted stock is valued at the date of grant, based on the closing market price of the Company’s common stock, and expensed using the straight-line method over the requisite service period (generally the vesting period of the award). The Company excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. | |||||||||||||||||
During the first quarter of 2014, 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 96,706 shares, with a grant-date fair value of $19.31 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, 2016. 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 vested on March 7, 2014. | |||||||||||||||||
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 unaudited consolidated statements of income (in thousands): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | $ | 320 | $ | 306 | $ | 602 | $ | 563 | |||||||||
Cost of software & services revenues, exclusive of depreciation & amortization | 14 | 19 | 26 | 36 | |||||||||||||
Selling & administrative | 1,080 | 874 | 1,786 | 1,478 | |||||||||||||
Stock-based compensation expense before income taxes | 1,414 | 1,199 | 2,414 | 2,077 | |||||||||||||
Income tax benefit | (559 | ) | (469 | ) | (949 | ) | (788 | ) | |||||||||
Net stock-based compensation expense | $ | 855 | $ | 730 | $ | 1,465 | $ | 1,289 |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
INCOME TAXES | ' |
5. INCOME TAXES | |
The Company’s effective tax rate was approximately 40% and 39%, respectively, for the three- and six-month periods ended June 30, 2014, compared to 39% and 38%, respectively, in the corresponding prior year periods. The Company’s effective tax rate in the current quarter and year-to-date periods was higher than in the prior year periods, mainly due to the expiration of the federal research and development tax credit on December 31, 2013. For the three- and six-month periods ended June 30, 2013, the Company recognized a favorable benefit related to the federal research and development tax credit totaling approximately $0.1 million and $0.6 million, respectively. Legislation extending the research and development tax credit beyond December 31, 2013 has not been enacted. |
SEGMENTS_AND_RELATED_INFORMATI
SEGMENTS AND RELATED INFORMATION | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
SEGMENTS AND RELATED INFORMATION | ' | ||||||||||||||||
6. SEGMENTS AND RELATED INFORMATION | |||||||||||||||||
The Outsourced Portals segment is the Company’s only reportable segment and includes the Company’s subsidiaries operating 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 three-month period ended June 30 (in thousands): | |||||||||||||||||
Outsourced | Other Software | Other Reconciling | Consolidated | ||||||||||||||
Portals | & Services | Items | Total | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 66,809 | $ | 4,346 | $ | - | $ | 71,155 | |||||||||
Costs & expenses | 41,888 | 1,259 | 7,464 | 50,611 | |||||||||||||
Depreciation & amortization | 2,198 | 10 | 69 | 2,277 | |||||||||||||
Operating income (loss) | $ | 22,723 | $ | 3,077 | $ | (7,533 | ) | $ | 18,267 | ||||||||
2013 | |||||||||||||||||
Revenues | $ | 62,094 | $ | 3,844 | $ | - | $ | 65,938 | |||||||||
Costs & expenses | 37,463 | 1,321 | 7,362 | 46,146 | |||||||||||||
Depreciation & amortization | 1,971 | 14 | 64 | 2,049 | |||||||||||||
Operating income (loss) | $ | 22,660 | $ | 2,509 | $ | (7,426 | ) | $ | 17,743 | ||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the three-month period ended June 30 (in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total segment operating income | $ | 25,800 | $ | 25,169 | |||||||||||||
Other reconciling items | (7,533 | ) | (7,426 | ) | |||||||||||||
Other expense, net | (24 | ) | (2 | ) | |||||||||||||
Consolidated income before income taxes | $ | 18,243 | $ | 17,741 | |||||||||||||
The table below reflects summarized financial information for the Company’s reportable segments for the six-month period ended June 30 (in thousands): | |||||||||||||||||
Outsourced | Other Software | Other Reconciling | Consolidated | ||||||||||||||
Portals | & Services | Items | Total | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 128,291 | $ | 8,261 | $ | - | $ | 136,552 | |||||||||
Costs & expenses | 81,330 | 2,215 | 14,724 | 98,269 | |||||||||||||
Depreciation & amortization | 4,367 | 20 | 140 | 4,527 | |||||||||||||
Operating income (loss) | $ | 42,594 | $ | 6,026 | $ | (14,864 | ) | $ | 33,756 | ||||||||
2013 | |||||||||||||||||
Revenues | $ | 120,136 | $ | 7,026 | $ | - | $ | 127,162 | |||||||||
Costs & expenses | 72,338 | 2,526 | 14,756 | 89,620 | |||||||||||||
Depreciation & amortization | 3,918 | 29 | 129 | 4,076 | |||||||||||||
Operating income (loss) | $ | 43,880 | $ | 4,471 | $ | (14,885 | ) | $ | 33,466 | ||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the six-month period ended June 30 (in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total segment operating income | $ | 48,620 | $ | 48,351 | |||||||||||||
Other reconciling items | (14,864 | ) | (14,885 | ) | |||||||||||||
Other expense, net | (128 | ) | (21 | ) | |||||||||||||
Consolidated income before income taxes | $ | 33,628 | $ | 33,445 | |||||||||||||
For both the three- and six-month periods ended June 30, 2014, the Company’s Texas portal contract accounted for approximately 21% of the Company’s total consolidated revenues. For the three- and six-month periods ended June 30, 2013, the Company’s Texas portal contract accounted for approximately 22% and 23%, respectively, of the Company’s total consolidated revenues. No other state portal contract accounted for more than 10% of the Company’s total consolidated revenues for the three- and six-month periods ended June 30, 2014 or 2013. |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 6 Months Ended | |
Jun. 30, 2014 | ||
SUBSEQUENT EVENT | ' | |
7. SUBSEQUENT EVENT | ||
On August 6, 2014, the Company entered into an amendment to extend its $10 million unsecured revolving credit agreement with Bank of America, N.A. to May 1, 2016. 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 million, which reduces the maximum amount available for borrowing under the facility. Interest on amounts borrowed is payable at the bank’s prime rate or a LIBOR rate plus a margin (as selected by the Company), in each case as defined in the agreement. That margin, and the 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 Company will pay a one-time upfront fee of $18,750 related to the amendment of the credit facility. | ||
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 tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the credit agreement); and | |
● | Consolidated maximum leverage ratio of 1.5:1 (the ratio of total funded debt to EBITDA). | |
The Company was in compliance with each of the covenants listed above at June 30, 2014. 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 $1.4 million and $1.6 million, respectively, at June 30, 2014 and December 31, 2013. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.6 million in available capacity to issue additional letters of credit and $8.6 million of unused borrowing capacity at June 30, 2014 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 credit agreement also includes an accordion feature that will allow the Company to increase the available capacity under the credit agreement by a total of up to $50.0 million, subject to securing additional commitments from the bank. |
THE_COMPANY_AND_SUMMARY_OF_SIG1
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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), 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. 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 expenses 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 expenses also consist of stock-based compensation and corporate-level expenses for market development and public relations. For the three- and six-month periods ended June 30, 2013, selling & administrative expenses also include legal fees and other third-party costs, net of directors’ and officers’ liability insurance received, incurred in connection with the previously disclosed SEC matter, which was successfully concluded in December 2013 (see Item 3, Legal Proceedings, and Note 7 in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 27, 2014). | |||||||||||||||||
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 and 0.8 million at June 30, 2014 and 2013, respectively. 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 (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 11,030 | $ | 10,808 | $ | 20,405 | $ | 20,764 | |||||||||
Less: Income allocated to participating securities | (109 | ) | (118 | ) | (203 | ) | (230 | ) | |||||||||
Net income available to common stockholders | $ | 10,921 | $ | 10,690 | $ | 20,202 | $ | 20,534 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Performance-based restricted stock awards | - | - | - | - | |||||||||||||
Weighted average shares - diluted | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Basic net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 | |||||||||
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 June 30, 2014, the amount of cash covered by FDIC deposit insurance was approximately $10.7 million, and approximately $85.0 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. | |||||||||||||||||
Recent accounting pronouncements | ' | ||||||||||||||||
Recent accounting pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and thereby improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2017, including interim periods within that reporting period. Early application is not permitted. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements. |
THE_COMPANY_AND_SUMMARY_OF_SIG2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 11,030 | $ | 10,808 | $ | 20,405 | $ | 20,764 | |||||||||
Less: Income allocated to participating securities | (109 | ) | (118 | ) | (203 | ) | (230 | ) | |||||||||
Net income available to common stockholders | $ | 10,921 | $ | 10,690 | $ | 20,202 | $ | 20,534 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Performance-based restricted stock awards | - | - | - | - | |||||||||||||
Weighted average shares - diluted | 65,245 | 64,890 | 65,151 | 64,800 | |||||||||||||
Basic net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income | $ | 0.17 | $ | 0.16 | $ | 0.31 | $ | 0.32 |
OUTSOURCED_GOVERNMENT_CONTRACT1
OUTSOURCED GOVERNMENT CONTRACTS (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
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: | ||||
Year Services | Contract Expiration Date | |||
NIC Portal Entity | Portal Website (State) | Commenced | (Renewal Options Through) | |
Connecticut Interactive, LLC | www.ct.gov (Connecticut) | 2014 | 1/9/2017 (1/9/2020) | |
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 | 9/30/14 | |
Mississippi Interactive, LLC | www.ms.gov (Mississippi) | 2011 | 12/31/2015 (12/31/2021) | |
New Jersey Interactive, LLC | www.nj.gov (New Jersey) | 2009 | 10/30/14 | |
Texas NICUSA, LLC | www.Texas.gov (Texas) | 2009 | 8/31/2016 (8/31/2018) | |
West Virginia Interactive, LLC | www.WV.gov (West Virginia) | 2007 | 6/30/2014 (contract has been temporarily extended to allow the state time to finalize contract terms and conditions) | |
Vermont Information Consortium, LLC | www.Vermont.gov (Vermont) | 2006 | 6/8/2016 (6/8/2019) | |
Colorado Interactive, LLC | www.Colorado.gov (Colorado) | 2005 | 4/30/2019 (4/30/2023) | |
South Carolina Interactive, LLC | www.SC.gov (South Carolina) | 2005 | 7/15/2019 (7/15/2021) | |
Kentucky Interactive, LLC | www.Kentucky.gov (Kentucky) | 2003 | 8/31/15 | |
Alabama Interactive, LLC | www.Alabama.gov (Alabama) | 2002 | 2/28/2015 (2/28/2017) | |
Rhode Island Interactive, LLC | www.RI.gov (Rhode Island) | 2001 | 7/1/2017 (7/1/2019) | |
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 (7/1/2018) | |
Arkansas Information Consortium, LLC | www.Arkansas.gov (Arkansas) | 1997 | 6/30/18 | |
Iowa Interactive, LLC | www.Iowa.gov (Iowa) | 1997 | 6/30/2016 (6/30/2020) | |
Indiana Interactive, LLC | www.IN.gov (Indiana) | 1995 | 7/31/16 | |
Nebraska Interactive, LLC | www.Nebraska.gov (Nebraska) | 1995 | 1/31/16 | |
Kansas Information Consortium, Inc. | www.Kansas.gov (Kansas) | 1992 | 12/31/2021 (annual 1-year renewal options) |
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-based Compensation Expense | ' | ||||||||||||||||
The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of portal revenues, exclusive of depreciation & amortization | $ | 320 | $ | 306 | $ | 602 | $ | 563 | |||||||||
Cost of software & services revenues, exclusive of depreciation & amortization | 14 | 19 | 26 | 36 | |||||||||||||
Selling & administrative | 1,080 | 874 | 1,786 | 1,478 | |||||||||||||
Stock-based compensation expense before income taxes | 1,414 | 1,199 | 2,414 | 2,077 | |||||||||||||
Income tax benefit | (559 | ) | (469 | ) | (949 | ) | (788 | ) | |||||||||
Net stock-based compensation expense | $ | 855 | $ | 730 | $ | 1,465 | $ | 1,289 |
SEGMENTS_AND_RELATED_INFORMATI1
SEGMENTS AND RELATED INFORMATION (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Summary of Financial Information for Reportable Segments | ' | ||||||||||||||||
The table below reflects summarized financial information for the Company’s reportable and operating segments for the three-month period ended June 30 (in thousands): | |||||||||||||||||
Outsourced | Other Software | Other Reconciling | Consolidated | ||||||||||||||
Portals | & Services | Items | Total | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 66,809 | $ | 4,346 | $ | - | $ | 71,155 | |||||||||
Costs & expenses | 41,888 | 1,259 | 7,464 | 50,611 | |||||||||||||
Depreciation & amortization | 2,198 | 10 | 69 | 2,277 | |||||||||||||
Operating income (loss) | $ | 22,723 | $ | 3,077 | $ | (7,533 | ) | $ | 18,267 | ||||||||
2013 | |||||||||||||||||
Revenues | $ | 62,094 | $ | 3,844 | $ | - | $ | 65,938 | |||||||||
Costs & expenses | 37,463 | 1,321 | 7,362 | 46,146 | |||||||||||||
Depreciation & amortization | 1,971 | 14 | 64 | 2,049 | |||||||||||||
Operating income (loss) | $ | 22,660 | $ | 2,509 | $ | (7,426 | ) | $ | 17,743 | ||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the three-month period ended June 30 (in thousands): | |||||||||||||||||
Outsourced | Other Software | Other Reconciling | Consolidated | ||||||||||||||
Portals | & Services | Items | Total | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 128,291 | $ | 8,261 | $ | - | $ | 136,552 | |||||||||
Costs & expenses | 81,330 | 2,215 | 14,724 | 98,269 | |||||||||||||
Depreciation & amortization | 4,367 | 20 | 140 | 4,527 | |||||||||||||
Operating income (loss) | $ | 42,594 | $ | 6,026 | $ | (14,864 | ) | $ | 33,756 | ||||||||
2013 | |||||||||||||||||
Revenues | $ | 120,136 | $ | 7,026 | $ | - | $ | 127,162 | |||||||||
Costs & expenses | 72,338 | 2,526 | 14,756 | 89,620 | |||||||||||||
Depreciation & amortization | 3,918 | 29 | 129 | 4,076 | |||||||||||||
Operating income (loss) | $ | 43,880 | $ | 4,471 | $ | (14,885 | ) | $ | 33,466 | ||||||||
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 three-month period ended June 30 (in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total segment operating income | $ | 25,800 | $ | 25,169 | |||||||||||||
Other reconciling items | (7,533 | ) | (7,426 | ) | |||||||||||||
Other expense, net | (24 | ) | (2 | ) | |||||||||||||
Consolidated income before income taxes | $ | 18,243 | $ | 17,741 | |||||||||||||
The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the six-month period ended June 30 (in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total segment operating income | $ | 48,620 | $ | 48,351 | |||||||||||||
Other reconciling items | (14,864 | ) | (14,885 | ) | |||||||||||||
Other expense, net | (128 | ) | (21 | ) | |||||||||||||
Consolidated income before income taxes | $ | 33,628 | $ | 33,445 |
Recovered_Sheet1
The Company and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 6 Months Ended | |
Share data in Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Categories | ||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' |
Number of business channels | 2 | ' |
Number of revenue and cost categories | 2 | ' |
Unvested service-based restricted stock awards included in the calculation of earnings per share | 0.7 | 0.8 |
Deposits Assets | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' |
Cash subject to FDIC insurance | 10,700,000 | ' |
Cash not subject to FDIC insurance | 85,000,000 | ' |
Deposits Assets | Maximum | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' |
Cash subject to FDIC insurance | 250,000 | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income | $11,030 | $10,808 | $20,405 | $20,764 |
Less: Income allocated to participating securities | -109 | -118 | -203 | -230 |
Net income available to common stockholders | $10,921 | $10,690 | $20,202 | $20,534 |
Denominator: | ' | ' | ' | ' |
Weighted average shares - basic | 65,245 | 64,890 | 65,151 | 64,800 |
Performance-based restricted stock awards | 0 | 0 | 0 | 0 |
Weighted average shares - diluted | 65,245 | 64,890 | 65,151 | 64,800 |
Basic net income per share: | ' | ' | ' | ' |
Net income | $0.17 | $0.16 | $0.31 | $0.32 |
Diluted net income per share: | ' | ' | ' | ' |
Net income | $0.17 | $0.16 | $0.31 | $0.32 |
Recovered_Sheet2
Outsourced Government Contracts - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Contract | Contract | Customer | Department of Game and Inland Fisheries | Office of the Executive Secretary of the Supreme Court of Virginia | New Mexico Interactive, LLC | NICUSA, AZ Division | NICUSA, AZ Division | NICUSA, AZ Division | NICUSA, AZ Division | NICUSA, AZ Division | Delaware Interactive, LLC | Outsourced State Portal Contracts | Outsourced State Portal Contracts | Outsourced State Portal Contracts | Connecticut Interactive, LLC | Connecticut Interactive, LLC | State of Colorado | State of Colorado | US Department of Transportation, Federal Motor Carrier Safety Administration | US Department of Transportation, Federal Motor Carrier Safety Administration | US Department of Transportation, Federal Motor Carrier Safety Administration | State of Rhode Island | State of Rhode Island | State of Iowa | State of Iowa | Kentucky | State of Kansas | State of Kansas | State of Indiana | SOUTH CAROLINA | SOUTH CAROLINA | |||
Customer | RenewalOptions | RenewalOptions | Scenario, Forecast | Consolidated Revenues | Consolidated Revenues | Consolidated Revenues | Consolidated Revenues | Contract | Consolidated Revenues | Consolidated Revenues | Extended Term | Renewal Term | Extended Term | Renewal Term | Scenario, Forecast | Renewal Term | Third Extended Term | RenewalOptions | Renewal Term | RenewalOptions | Renewal Term | Extended Term | Scenario, Forecast | Renewal Term | Extended Term | Scenario, Forecast | Renewal Term | |||||||
Option | Scenario, Forecast | Scenario, Forecast | Maximum | |||||||||||||||||||||||||||||||
Scenario, Forecast | ||||||||||||||||||||||||||||||||||
Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of portal outsourcing contracts that can be terminated by the other party without cause on period of notice | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59.00% | 58.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance bond commitments | $6,600,000 | ' | $6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of contract | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '5 years | '4 years | ' | '1 year | '1 year | '3 years | '1 year | '2 years | '1 year | '1 year | '7 years | '1 year | '2 years | '5 years | '2 years |
Contract renewal option | ' | ' | ' | ' | ' | 1 | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Contract renewal option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Annual | ' | ' | ' | ' |
Option for the agency to extend the contract | ' | ' | ' | ' | ' | '6 months | '12 months | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of federal agencies the Company currently has contracts with to provide outsourced services | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | 26-Mar-14 | ' | ' | ' | ' | 30-Sep-14 | ' | ' | ' | ' | ' | ' | ' | 16-Aug-15 | ' | 16-Feb-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract extension period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of outsourced portal services or software development and services contracts with expiration date within a 12-month period | 12 | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total consolidated revenues related to contracts with expiration dates within a 12-month period | 32.00% | ' | 31.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 71,155,000 | 65,938,000 | 136,552,000 | 127,162,000 | ' | ' | ' | ' | ' | 0 | 1,100,000 | 800,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual portal management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_EnterpriseWide_Port
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Connecticut Interactive, LLC | ' |
Contracts [Line Items] | ' |
Portal Website (State) | 'www.ct.gov (Connecticut) |
Year Service Commenced | '2014 |
Contract Expiration Date | 9-Jan-17 |
Connecticut Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 9-Jan-20 |
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) |
Year Service Commenced | '2012 |
Contract Expiration Date | 30-Nov-17 |
Pennsylvania Interactive LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 30-Nov-22 |
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 | 30-Sep-14 |
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 |
New Jersey Interactive LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 30-Oct-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 |
West Virginia Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Term of contract | 'contract has been temporarily extended to allow the state time to finalize contract terms and conditions |
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 | 30-Apr-19 |
Colorado Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 30-Apr-23 |
South Carolina Interactive, LLC | ' |
Contracts [Line Items] | ' |
Portal Website (State) | 'www.SC.gov (South Carolina) |
Year Service Commenced | '2005 |
Contract Expiration Date | 15-Jul-19 |
South Carolina Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 15-Jul-21 |
Kentucky Interactive, LLC | ' |
Contracts [Line Items] | ' |
Portal Website (State) | 'www.Kentucky.gov (Kentucky) |
Year Service Commenced | '2003 |
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 |
Contract Expiration Date | 1-Jul-17 |
Rhode Island Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 1-Jul-19 |
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 | 1-Jul-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 | 30-Jun-16 |
Iowa Interactive, LLC | Renewal Term | ' |
Contracts [Line Items] | ' |
Contract Expiration Date | 30-Jun-20 |
Indiana Interactive, LLC | ' |
Contracts [Line Items] | ' |
Portal Website (State) | 'www.IN.gov (Indiana) |
Year Service Commenced | '1995 |
Contract Expiration Date | 31-Jul-16 |
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-21 |
Kansas Information Consortium, Inc. | Renewal Term | ' |
Contracts [Line Items] | ' |
Term of contract | 'annual 1-year renewal options |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Oct. 28, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 28, 2013 |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Special cash dividend declared, date | 28-Oct-13 | ' | ' | ' |
Special cash dividend record, date | 8-Nov-13 | ' | ' | ' |
Special cash dividend declared per share | $0.35 | ' | ' | ' |
Special cash dividend paid | $23 | ' | ' | ' |
Special cash dividend paid, date | 2-Jan-14 | ' | ' | ' |
Outstanding shares of common stock | ' | 65,260,000 | 64,993,000 | 64,987,854 |
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 | ' | ' | ' |
Unvested shares of restricted stock on the dividend record date | ' | ' | ' | 676,281 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Performance-Based Restricted Stock | Performance-Based Restricted Stock | Performance-Based Restricted Stock | |
Service Based Awards | Service Based Awards | Service Based Awards | Service Based Awards | Performance Period 2011 to 2013 | |||
Employees And Executives Officers | Employees And Executives Officers | Non-Employee Directors | Vesting Rate | ||||
Stock Based Compensation And Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share based compensation award shares granted in period | 7,416 | 233,466 | 39,560 | ' | 96,706 | ' | ' |
Share based compensation award granted in period grant-date fair value | $0.10 | $4.50 | $0.70 | ' | $1.90 | ' | ' |
Share based compensation award vesting period | ' | '1 year | ' | ' | '3 years | ' | ' |
Share based compensation award cumulative annual installment vesting rate | ' | ' | ' | 25.00% | ' | ' | ' |
Share based compensation award granted in period weighted average fair value at grant date, per share | ' | ' | ' | ' | $19.31 | ' | ' |
Share based compensation award end date of the a three-year performance period | ' | ' | ' | ' | 31-Dec-16 | ' | ' |
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). | ' |
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 |
Stock_Based_Compensation_Expen
Stock Based Compensation Expenses (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | $1,414 | $1,199 | $2,414 | $2,077 |
Income tax benefit | -559 | -469 | -949 | -788 |
Net stock-based compensation expense | 855 | 730 | 1,465 | 1,289 |
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 | 320 | 306 | 602 | 563 |
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 | 14 | 19 | 26 | 36 |
Selling & administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | $1,080 | $874 | $1,786 | $1,478 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective tax rate | 40.00% | 39.00% | 39.00% | 38.00% |
Federal research and development tax credit | ' | $0.10 | ' | $0.60 |
Segment_and_Related_Informatio
Segment and Related Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 1 | ' |
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 21.00% | 22.00% | 21.00% | 23.00% |
Summary_of_Financial_Informati
Summary of Financial Information for Reportable Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $71,155 | $65,938 | $136,552 | $127,162 |
Costs & expenses | 50,611 | 46,146 | 98,269 | 89,620 |
Depreciation & amortization | 2,277 | 2,049 | 4,527 | 4,076 |
Operating income | 18,267 | 17,743 | 33,756 | 33,466 |
Outsourced Portals | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 66,809 | 62,094 | 128,291 | 120,136 |
Costs & expenses | 41,888 | 37,463 | 81,330 | 72,338 |
Depreciation & amortization | 2,198 | 1,971 | 4,367 | 3,918 |
Operating income | 22,723 | 22,660 | 42,594 | 43,880 |
Other Software & Services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 4,346 | 3,844 | 8,261 | 7,026 |
Costs & expenses | 1,259 | 1,321 | 2,215 | 2,526 |
Depreciation & amortization | 10 | 14 | 20 | 29 |
Operating income | 3,077 | 2,509 | 6,026 | 4,471 |
Other Reconciling Items | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Costs & expenses | 7,464 | 7,362 | 14,724 | 14,756 |
Depreciation & amortization | 69 | 64 | 140 | 129 |
Operating income | ($7,533) | ($7,426) | ($14,864) | ($14,885) |
Reconciliation_of_Total_Segmen
Reconciliation of Total Segment Operating Income to Total Consolidated Income before Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | $18,267 | $17,743 | $33,756 | $33,466 |
Other expense, net | -24 | -2 | -128 | -21 |
Consolidated income before income taxes | 18,243 | 17,741 | 33,628 | 33,445 |
Total segment operating income | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | 25,800 | 25,169 | 48,620 | 48,351 |
Other Reconciling Items | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | ($7,533) | ($7,426) | ($14,864) | ($14,885) |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | |
Unsecured Credit Agreement | Unsecured Credit Agreement | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
Revolving Credit Facility | Revolving Credit Facility | Unsecured Credit Agreement | Unsecured Credit Agreement | Unsecured Credit Agreement | Unsecured Credit Agreement | Unsecured Credit Agreement | Unsecured Credit Agreement | Unsecured Credit Agreement | ||
Covenant Requirement | Covenant Requirement | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | ||||
Letter of Credit | Letter of Credit | Letter of Credit | ||||||||
If the Company's consolidated leverage ratio is less than or equal to 1.25:1 | If the Company's consolidated leverage ratio is greater than 1.25:1 | |||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $10,000,000 | $5,000,000 | ' | ' |
Credit facility, amended expiration date | ' | ' | ' | ' | ' | 1-May-16 | ' | ' | ' | ' |
Fees on outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.75% |
Consolidated leverage ratio | ' | ' | ' | ' | 150.00% | ' | ' | ' | 125.00% | 125.00% |
Credit facility, interest rate description | ' | ' | ' | ' | ' | 'Interest on amounts borrowed is payable at the bank's prime rate or a LIBOR rate plus a margin (as selected by the Company), in each case as defined in the agreement. That margin, and the 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. | ' | ' | ' | ' |
One-time upfront fee related to amendment of credit facility. | ' | ' | ' | ' | ' | ' | 18,750 | ' | ' | ' |
Consolidated tangible net worth required | ' | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' |
Debt instrument, covenant compliance | 'The Company was in compliance with each of the covenants listed above at June 30, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit, maximum effective in force period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, outstanding letters of credit | ' | 1,400,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' |
Credit facility, available capacity to issue additional letters of credit | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, available borrowing capacity | ' | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility,increase available capacity under the credit agreement | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |