Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EGOV | |
Entity Registrant Name | NIC INC | |
Entity Central Index Key | 1,065,332 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,911,331 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 105,783 | $ 98,388 |
Cash restricted for payment of dividend | 36,456 | |
Trade accounts receivable, net | 79,187 | 80,362 |
Prepaid expenses & other current assets | 13,961 | 12,584 |
Total current assets | 198,931 | 227,790 |
Property and equipment, net | 9,462 | 9,333 |
Intangible assets, net | 2,523 | 2,267 |
Deferred income taxes, net | 828 | 1,421 |
Other assets | 446 | 426 |
Total assets | 212,190 | 241,237 |
Current liabilities: | ||
Accounts payable | 57,743 | 61,133 |
Accrued expenses | 17,347 | 20,986 |
Dividend payable | 36,456 | |
Other current liabilities | 2,842 | 2,597 |
Total current liabilities | 77,932 | 121,172 |
Other long-term liabilities | 4,646 | 4,259 |
Total liabilities | $ 82,578 | $ 125,431 |
Commitments and contingencies (Notes 1 and 2) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par, 200,000 shares authorized, 65,911 and 65,637 shares issued and outstanding | $ 7 | $ 7 |
Additional paid-in capital | 101,814 | 100,929 |
Retained earnings | 27,791 | 14,870 |
Total stockholders' equity | 129,612 | 115,806 |
Total liabilities and stockholders' equity | $ 212,190 | $ 241,237 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common stock, par | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 65,911,000 | 65,637,000 |
Common stock, shares outstanding | 65,911,000 | 65,637,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Portal revenues | $ 73,197 | $ 65,914 |
Software & services revenues | 5,193 | 4,445 |
Total revenues | 78,390 | 70,359 |
Operating expenses: | ||
Cost of portal revenues, exclusive of depreciation & amortization | 43,615 | 41,494 |
Cost of software & services revenues, exclusive of depreciation & amortization | 1,413 | 1,290 |
Selling & administrative | 11,342 | 10,538 |
Depreciation & amortization | 1,664 | 2,292 |
Total operating expenses | 58,034 | 55,614 |
Operating income (loss) before income taxes | 20,356 | 14,745 |
Income tax provision | 7,462 | 5,804 |
Net income | $ 12,894 | $ 8,941 |
Basic net income per share (Note 1) | $ 0.19 | $ 0.14 |
Diluted net income per share (Note 1) | $ 0.19 | $ 0.14 |
Weighted average shares outstanding: | ||
Basic | 65,739 | 65,387 |
Diluted | 65,739 | 65,387 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2015 | 65,637 | 65,637 | ||
Beginning Balance at Dec. 31, 2015 | $ 115,806 | $ 7 | $ 100,929 | $ 14,870 |
Net income | 12,894 | 12,894 | ||
Restricted stock vestings (in shares) | 314 | |||
Restricted stock vestings | 135 | 135 | ||
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards | 27 | 27 | ||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares) | (115) | |||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | (2,034) | (2,034) | ||
Stock-based compensation | 1,622 | 1,622 | ||
Tax deductions relating to stock-based compensation | 210 | 210 | ||
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards | (162) | (162) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 75 | |||
Issuance of common stock under employee stock purchase plan | 1,114 | 1,114 | ||
Ending Balance at Mar. 31, 2016 | $ 129,612 | $ 7 | $ 101,814 | $ 27,791 |
Ending Balance (in shares) at Mar. 31, 2016 | 65,911 | 65,911 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 12,894 | $ 8,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation & amortization | 1,664 | 2,292 |
Stock-based compensation expense | 1,622 | 2,159 |
Deferred income taxes | (1,263) | (1,436) |
Loss on disposal of property and equipment | 27 | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in trade accounts receivable, net | 1,175 | (10,354) |
Decrease in prepaid expenses & other current assets | 479 | 395 |
(Increase) decrease in other assets | (20) | 2 |
Increase (decrease) in accounts payable | (3,390) | 6,916 |
(Decrease) in accrued expenses | (5,696) | (4,960) |
Increase (decrease) in other current liabilities | 245 | (444) |
Increase in other long-term liabilities | 387 | 213 |
Net cash provided by operating activities | 8,097 | 3,751 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,485) | (677) |
Proceeds from sale of property and equipment | 2 | |
Capitalized internal use software development costs | (543) | (288) |
Net cash used in investing activities | (2,026) | (965) |
Cash flows from financing activities: | ||
Proceeds from employee common stock purchases | 1,114 | 1,131 |
Tax deductions related to stock-based compensation | 210 | 204 |
Net cash provided by financing activities | 1,324 | 1,335 |
Net increase in cash | 7,395 | 4,121 |
Cash, beginning of period | 98,388 | 87,983 |
Cash, end of period | 105,783 | 92,104 |
Non-cash investing activities: | ||
Capital expenditures accrued but not yet paid | 23 | 126 |
Cash payments: | ||
Income taxes paid | 6,853 | $ 6,414 |
Cash dividends paid on common stock previously restricted for payment of dividend | $ 36,456 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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 digital government services that help governments use technology 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 business model allows the Company to generate revenues by sharing in the fees the Company collects from online transactions. The Company’s government partners benefit by reducing their financial and technological 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 the up-front investments 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 digital government services, other than 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 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 digital government services, other than 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 and benefits (including stock-based compensation), fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, gains and losses on disposal of assets 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 digital government services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets 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 management incentive compensation, including stock-based compensation, and corporate-level expenses for market development, public relations and gains and losses on disposal of assets. 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 both March 31, 2016 and 2015. 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 March 31, 2016 2015 Numerator: Net income $ 12,894 $ 8,941 Less: Income allocated to participating securities (120 ) (85 ) Net income available to common stockholders $ 12,774 $ 8,856 Denominator: Weighted average shares - basic 65,739 65,387 Performance-based restricted stock awards - - Weighted average shares - diluted 65,739 65,387 Basic net income per share: Net income $ 0.19 $ 0.14 Diluted net income per share: Net income $ 0.19 $ 0.14 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 and monitoring the financial stability of those 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 March 31, 2016, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $95.3 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 March 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Compensation – Stock Compensation, which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period. Early application is permitted. The Company is currently evaluating the newly issued guidance and the estimated impact it will have on the Company’s financial statements. In February 2016, the FASB issued new authoritative literature, Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in a lessee recognizing a right-of-use (“ROU”) asset and a corresponding lease liability. For finance leases, a lessee will recognize interest expense and amortization expense for the ROU asset, and for operating leases, the lessee will recognize total rent expense on a straight-line basis. The standard is effective for the annual reporting period beginning January 1, 2019, including interim periods within that reporting period. Early application is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently evaluating the newly issued guidance and the estimated impact it will have on the Company’s financial statements. In May 2014, the FASB issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by the 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, 2018, including interim periods within that reporting period. 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 CONTRACTS
OUTSOURCED GOVERNMENT CONTRACTS | 3 Months Ended |
Mar. 31, 2016 | |
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 online transactions and data access services the Company provides and the division of revenues between the Company and the government agency. The government oversight authority must approve prices and revenue sharing agreements. The Company has limited control over the level of fees it is permitted to retain. 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. The Company is typically responsible for funding the up-front investments 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 a number of government partners on a software-as-a-service (“SaaS”) basis, and thus would not be included in any royalty-free license. If the Company’s contract is not renewed after a defined term or if its contract is terminated by a government partner for cause, the government agency would be entitled to take over the portal in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. Any renewal of these contracts beyond the initial term by the government is optional and a government may terminate its contract prior to the expiration date if the Company breaches a material contractual obligation and fails to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 18 contracts under which the Company provides outsourced portal services, software development and digital government services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 65% of the Company’s total consolidated revenues for the three-month period ended March 31, 2016. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay the Company a fee 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, Kentucky, New Jersey, Pennsylvania, South Carolina, 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 state of Delaware and the Virginia Department of Game and Inland Fisheries (“DGIF”). 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. At March 31, 2016, the Company was bound by performance bond commitments totaling approximately $6.6 million on certain outsourced portal contracts. 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: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (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 11/22/2021 NICUSA, MD Division www.maryland.gov (Maryland) 2011 8/10/2017 (8/10/2019) Mississippi Interactive, LLC www.ms.gov (Mississippi) 2011 12/31/2017 (12/31/2021) New Jersey Interactive, LLC www.nj.gov (New Jersey) 2009 5/1/2020 (5/1/2022) Texas NICUSA, LLC www.Texas.gov (Texas) 2009 8/31/2018 West Virginia Interactive, LLC www.WV.gov (West Virginia) 2007 6/30/2016 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 8/31/2016 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/1/2017 Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2017 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2017 (12/31/2020) NICUSA, TN Division www.TN.gov (Tennessee) 2000 3/31/2017 Hawaii Information Consortium, LLC www.eHawaii.gov (Hawaii) 2000 1/3/2019 (3-year renewal options) Idaho Information Consortium, LLC www.Idaho.gov (Idaho) 2000 6/30/2017 Utah Interactive, LLC www.Utah.gov (Utah) 1999 6/5/2019 Maine Information Network, LLC www.Maine.gov (Maine) 1999 7/1/2018 Arkansas Information Consortium, LLC www.Arkansas.gov (Arkansas) 1997 6/30/2018 Iowa Interactive, LLC www.Iowa.gov (Iowa) 1997 6/30/2016 (6/30/2020) Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2016 Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2022 (annual 1-year renewal options) During the first quarter of 2016, the Company executed a one-year contract extension with the state of Alabama. During the second quarter of 2016, the Company executed one-year contract extensions with the states of Kansas and Oklahoma. Other outsourced state contracts During the third quarter of 2014, the Company’s subsidiary, Louisiana Interactive, LLC, signed a master contract with the state of Louisiana Division of Administration, Office of Technology Services (“Louisiana Division”) that creates a framework to provide certain digital government services for a pilot period. The pilot period commenced during the first quarter of 2015 and the Company anticipates it will conclude within approximately 18 months after the commencement of the pilot period. Subsequent to the pilot period, the Louisiana Division has the option to receive enterprise-wide digital government solutions pursuant to the master contract. The Company’s subsidiary, New Mexico Interactive, LLC, has a contract to manage digital government services for the New Mexico Motor Vehicle Division and its parent, the New Mexico Taxation and Revenue Department. The current contract runs through June 30, 2016 and includes two one-year renewal options. During the third quarter of 2015, the Company’s subsidiary, Virginia Interactive, LLC (“VI”) extended its agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide digital government services through August 31, 2016. The agreement includes seven one-year renewal options. Outsourced federal contracts The Company’s subsidiary NIC Federal, LLC (“NIC Federal”) 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 Company’s transaction-based business model. During the third quarter of 2015, the Company signed a new one-year contract with the FMCSA that runs through August 31, 2016, which includes two one-year renewal options. Any renewal of the contract with the FMCSA beyond the current 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 March 31, 2016, there were 12 contracts under which the Company provides outsourced portal services, software development and digital government services that have expiration dates within the 12-month period following March 31, 2016. Collectively, revenues generated from these contracts represented approximately 26% of the Company’s total consolidated revenues for the three-month period ended March 31, 2016. 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, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. During the third quarter of 2015, VI extended its agreement with DGIF to provide digital government services through August 31, 2016. During the fourth quarter of 2015, DGIF informed VI that it does not intend to renew its contract with VI when the contract term expires on August 31, 2016. VI will provide transition services as required by the contract through the August 31, 2016 expiration date of the contract. The Company does not believe the expiration of its contract with DGIF will have a material impact on the Company’s consolidated results of operations, cash flows or financial condition. The contract under which the Company’s subsidiary, Delaware Interactive, LLC (“DI”), managed the state of Delaware’s official government portal expired on March 31, 2015. For the three-month period ended March 31, 2015, revenues from the Delaware portal contract were approximately $0.6 million. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2016 | |
STOCK BASED COMPENSATION | 3. STOCK BASED COMPENSATION During the first quarter of 2016, the Board of Directors of the Company granted to certain management-level employees and executive officers service-based restricted stock awards totaling 263,896 shares with a grant-date fair value totaling approximately $4.7 million. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. 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 estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. During the first quarter of 2016, 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 138,191 shares with a grant-date fair value totaling approximately $2.4 million, which represents the maximum number of shares the executive officers can earn at the end of a three-year performance period ending December 31, 2018. The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period: ● Operating income growth (three-year compound annual growth rate); ● Total consolidated revenue growth (three-year compound annual growth rate); and ● Return on invested capital (three-year average). At the end of the three-year period, the executive officers are eligible to receive up to a specified number of shares based upon the Company’s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividends declared during the performance period, payable in the form of 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, 2015, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 5, 2013 ended. Based on the Company’s actual financial results from 2013 through 2015, 96,732 of the shares subject to the awards and 6,990 dividend shares were earned and vested on February 5, 2016. 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 March 31, 2016 2015 Cost of portal revenues, exclusive of depreciation & amortization $ 455 $ 404 Cost of software & services revenues, exclusive of depreciation & amortization 17 11 Selling & administrative 1,150 1,744 Stock-based compensation expense before income taxes 1,622 2,159 Income tax benefit (595 ) (850 ) Net stock-based compensation expense $ 1,027 $ 1,309 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
INCOME TAXES | 4. INCOME TAXES The Company’s effective tax rate was approximately 37% and 39%, respectively, for the three-month periods ended March 31, 2016 and 2015. The Company’s effective tax rate in the current quarter was lower than the prior year quarter mainly due to a favorable benefit related to a federal research and development credit and an adjustment to certain deferred tax liabilities related to a previous acquisition of a business. In the prior year quarter, legislation extending the research and development credit beyond December 31, 2014 had not been enacted. On December 18, 2015, the Protecting Americans from Tax Hikes Act was signed into law, which included a provision making the federal research and development credit permanent. |
REPORTABLE SEGMENT AND RELATED
REPORTABLE SEGMENT AND RELATED INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
REPORTABLE SEGMENT AND RELATED INFORMATION | 5. REPORTABLE SEGMENT AND RELATED INFORMATION The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating outsourced state and local government portals. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and digital government services, other than 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. Beginning in the fourth quarter of 2015, certain corporate divisions that support the Company’s portal businesses, which were previously reported in the Outsourced Portals segment, are now reported with all other corporate divisions as unallocated corporate-level expenses and reported in the reconciliation of the segment totals to the related consolidated totals as “Other Reconciling Items.” The new presentation is consistent with the manner by which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. The prior period presented has been recast to conform to the current segment reporting. These changes had no impact on total consolidated revenues, total operating expenses or total operating income before income taxes. 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) before income taxes. 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 March 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2016 Revenues $ 73,197 $ 5,193 $ - $ 78,390 Costs & expenses 43,615 1,413 11,342 56,370 Depreciation & amortization 850 14 800 1,664 Operating income (loss) before income taxes $ 28,732 $ 3,766 $ (12,142 ) $ 20,356 2015 Revenues $ 65,914 $ 4,445 $ - $ 70,359 Costs & expenses 41,494 1,290 10,538 53,322 Depreciation & amortization 1,276 9 1,007 2,292 Operating income (loss) before income taxes $ 23,144 $ 3,146 $ (11,545 ) $ 14,745 For the three-month periods ended March 31, 2016 and 2015, the Company’s Texas portal contract accounted for approximately 20% and 22%, respectively, of the Company’s total consolidated revenues. No other contract accounted for 10% or more of the Company’s total consolidated revenues for the three-month period ended March 31, 2016 or 2015. |
THE COMPANY AND SUMMARY OF SI12
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 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 digital government services, other than 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 and benefits (including stock-based compensation), fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, gains and losses on disposal of assets 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 digital government services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets 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 management incentive compensation, including stock-based compensation, and corporate-level expenses for market development, public relations and gains and losses on disposal of assets. |
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 both March 31, 2016 and 2015. 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 March 31, 2016 2015 Numerator: Net income $ 12,894 $ 8,941 Less: Income allocated to participating securities (120 ) (85 ) Net income available to common stockholders $ 12,774 $ 8,856 Denominator: Weighted average shares - basic 65,739 65,387 Performance-based restricted stock awards - - Weighted average shares - diluted 65,739 65,387 Basic net income per share: Net income $ 0.19 $ 0.14 Diluted net income per share: Net income $ 0.19 $ 0.14 |
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 and monitoring the financial stability of those 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 March 31, 2016, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $95.3 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 March 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Compensation – Stock Compensation, which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period. Early application is permitted. The Company is currently evaluating the newly issued guidance and the estimated impact it will have on the Company’s financial statements. In February 2016, the FASB issued new authoritative literature, Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in a lessee recognizing a right-of-use (“ROU”) asset and a corresponding lease liability. For finance leases, a lessee will recognize interest expense and amortization expense for the ROU asset, and for operating leases, the lessee will recognize total rent expense on a straight-line basis. The standard is effective for the annual reporting period beginning January 1, 2019, including interim periods within that reporting period. Early application is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently evaluating the newly issued guidance and the estimated impact it will have on the Company’s financial statements. In May 2014, the FASB issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by the 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, 2018, including interim periods within that reporting period. 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 SI13
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Numerator: Net income $ 12,894 $ 8,941 Less: Income allocated to participating securities (120 ) (85 ) Net income available to common stockholders $ 12,774 $ 8,856 Denominator: Weighted average shares - basic 65,739 65,387 Performance-based restricted stock awards - - Weighted average shares - diluted 65,739 65,387 Basic net income per share: Net income $ 0.19 $ 0.14 Diluted net income per share: Net income $ 0.19 $ 0.14 |
OUTSOURCED GOVERNMENT CONTRAC14
OUTSOURCED GOVERNMENT CONTRACTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (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 11/22/2021 NICUSA, MD Division www.maryland.gov (Maryland) 2011 8/10/2017 (8/10/2019) Mississippi Interactive, LLC www.ms.gov (Mississippi) 2011 12/31/2017 (12/31/2021) New Jersey Interactive, LLC www.nj.gov (New Jersey) 2009 5/1/2020 (5/1/2022) Texas NICUSA, LLC www.Texas.gov (Texas) 2009 8/31/2018 West Virginia Interactive, LLC www.WV.gov (West Virginia) 2007 6/30/2016 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 8/31/2016 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/1/2017 Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2017 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2017 (12/31/2020) NICUSA, TN Division www.TN.gov (Tennessee) 2000 3/31/2017 Hawaii Information Consortium, LLC www.eHawaii.gov (Hawaii) 2000 1/3/2019 (3-year renewal options) Idaho Information Consortium, LLC www.Idaho.gov (Idaho) 2000 6/30/2017 Utah Interactive, LLC www.Utah.gov (Utah) 1999 6/5/2019 Maine Information Network, LLC www.Maine.gov (Maine) 1999 7/1/2018 Arkansas Information Consortium, LLC www.Arkansas.gov (Arkansas) 1997 6/30/2018 Iowa Interactive, LLC www.Iowa.gov (Iowa) 1997 6/30/2016 (6/30/2020) Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2016 Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2022 (annual 1-year renewal options) |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Cost of portal revenues, exclusive of depreciation & amortization $ 455 $ 404 Cost of software & services revenues, exclusive of depreciation & amortization 17 11 Selling & administrative 1,150 1,744 Stock-based compensation expense before income taxes 1,622 2,159 Income tax benefit (595 ) (850 ) Net stock-based compensation expense $ 1,027 $ 1,309 |
REPORTABLE SEGMENT AND RELATE16
REPORTABLE SEGMENT AND RELATED INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2016 Revenues $ 73,197 $ 5,193 $ - $ 78,390 Costs & expenses 43,615 1,413 11,342 56,370 Depreciation & amortization 850 14 800 1,664 Operating income (loss) before income taxes $ 28,732 $ 3,766 $ (12,142 ) $ 20,356 2015 Revenues $ 65,914 $ 4,445 $ - $ 70,359 Costs & expenses 41,494 1,290 10,538 53,322 Depreciation & amortization 1,276 9 1,007 2,292 Operating income (loss) before income taxes $ 23,144 $ 3,146 $ (11,545 ) $ 14,745 |
The Company and Summary of Si17
The Company and Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Categoriesshares | Mar. 31, 2015shares | |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ||
Number of business channels | Categories | 2 | |
Number of revenue and cost categories | Categories | 2 | |
Unvested service-based restricted stock awards included in the calculation of earnings per share | shares | 0.7 | 0.7 |
Deposits Assets | ||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ||
Cash subject to FDIC insurance | $ | $ 10.5 | |
Cash not subject to FDIC insurance | $ | $ 95.3 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net income | $ 12,894 | $ 8,941 |
Less: Income allocated to participating securities | (120) | (85) |
Net income available to common stockholders | $ 12,774 | $ 8,856 |
Denominator: | ||
Weighted average shares - basic | 65,739 | 65,387 |
Performance-based restricted stock awards | 0 | 0 |
Weighted average shares - diluted | 65,739 | 65,387 |
Basic net income per share: | ||
Net income | $ 0.19 | $ 0.14 |
Diluted net income per share: | ||
Net income | $ 0.19 | $ 0.14 |
Outsourced Government Contrac19
Outsourced Government Contracts - Additional Information (Detail) $ in Thousands | May. 03, 2016 | Mar. 31, 2016USD ($)ContractRenewalOptions | Mar. 31, 2015USD ($) | Sep. 30, 2015RenewalOptions |
Contracts [Line Items] | ||||
Number of portal outsourcing contracts that can be terminated by the other party without cause on period of notice | Contract | 18 | |||
Performance bond commitments | $ | $ 6,600 | |||
Number of outsourced portal services or software development and services contracts with expiration date within a 12-month period | Contract | 12 | |||
Portal revenues | $ | $ 73,197 | $ 65,914 | ||
New Mexico Interactive, LLC | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
Contract Expiration Date | Jun. 30, 2016 | |||
Contract renewal option | RenewalOptions | 2 | |||
Delaware Interactive, LLC | ||||
Contracts [Line Items] | ||||
Portal revenues | $ | $ 600 | |||
Virginia Interactive, LLC | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
Contract Expiration Date | Aug. 31, 2016 | |||
Contract renewal option | RenewalOptions | 7 | |||
Customer Concentration Risk | Consolidated Revenues | ||||
Contracts [Line Items] | ||||
Concentration risk percentage | 65.00% | |||
Government Contracts Concentration Risk | Consolidated Revenues | ||||
Contracts [Line Items] | ||||
Concentration risk percentage | 26.00% | |||
Alabama | Extended Term | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
Kansas | Subsequent Event | Extended Term | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
Oklahoma | Subsequent Event | Extended Term | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
US Department of Transportation, Federal Motor Carrier Safety Administration | ||||
Contracts [Line Items] | ||||
Contract period | 1 year | |||
Contract Expiration Date | Aug. 31, 2016 | |||
Contract renewal option | RenewalOptions | 2 |
Summary of Enterprise-Wide Port
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Connecticut Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.ct.gov (Connecticut) |
Year Service Commenced | 2,014 |
Contract Expiration Date | Jan. 9, 2017 |
Connecticut Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Jan. 9, 2020 |
Wisconsin Interactive Network, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.wisconsin.gov (Wisconsin) |
Year Service Commenced | 2,013 |
Contract Expiration Date | May 13, 2018 |
Wisconsin Interactive Network, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | May 13, 2023 |
Pennsylvania Interactive LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.pa.gov (Pennsylvania) |
Year Service Commenced | 2,012 |
Contract Expiration Date | Nov. 30, 2017 |
Pennsylvania Interactive LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Nov. 30, 2022 |
NICUSA, OR Division | |
Contracts [Line Items] | |
Portal Website (State) | www.oregon.gov (Oregon) |
Year Service Commenced | 2,011 |
Contract Expiration Date | Nov. 22, 2021 |
NICUSA, MD Division | |
Contracts [Line Items] | |
Portal Website (State) | www.maryland.gov (Maryland) |
Year Service Commenced | 2,011 |
Contract Expiration Date | Aug. 10, 2017 |
NICUSA, MD Division | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Aug. 10, 2019 |
Mississippi Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.ms.gov (Mississippi) |
Year Service Commenced | 2,011 |
Contract Expiration Date | Dec. 31, 2017 |
Mississippi Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Dec. 31, 2021 |
New Jersey Interactive LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.nj.gov (New Jersey) |
Year Service Commenced | 2,009 |
Contract Expiration Date | May 1, 2020 |
New Jersey Interactive LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | May 1, 2022 |
Texas NICUSA, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Texas.gov (Texas) |
Year Service Commenced | 2,009 |
Contract Expiration Date | Aug. 31, 2018 |
West Virginia Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.WV.gov (West Virginia) |
Year Service Commenced | 2,007 |
Contract Expiration Date | Jun. 30, 2016 |
Vermont Information Consortium, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Vermont.gov (Vermont) |
Year Service Commenced | 2,006 |
Contract Expiration Date | Jun. 8, 2016 |
Vermont Information Consortium, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Jun. 8, 2019 |
Colorado Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Colorado.gov (Colorado) |
Year Service Commenced | 2,005 |
Contract Expiration Date | Apr. 30, 2019 |
Colorado Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Apr. 30, 2023 |
South Carolina Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.SC.gov (South Carolina) |
Year Service Commenced | 2,005 |
Contract Expiration Date | Jul. 15, 2019 |
South Carolina Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Jul. 15, 2021 |
Kentucky Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Kentucky.gov (Kentucky) |
Year Service Commenced | 2,003 |
Contract Expiration Date | Aug. 31, 2016 |
Alabama Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Alabama.gov (Alabama) |
Year Service Commenced | 2,002 |
Contract Expiration Date | Mar. 1, 2017 |
Rhode Island Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.RI.gov (Rhode Island) |
Year Service Commenced | 2,001 |
Contract Expiration Date | Jul. 1, 2017 |
Rhode Island Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Jul. 1, 2019 |
Oklahoma Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.OK.gov (Oklahoma) |
Year Service Commenced | 2,001 |
Contract Expiration Date | Mar. 31, 2017 |
Oklahoma Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Mar. 31, 2020 |
Montana Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.MT.gov (Montana) |
Year Service Commenced | 2,001 |
Contract Expiration Date | Dec. 31, 2017 |
Montana Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Dec. 31, 2020 |
NICUSA, TN Division | |
Contracts [Line Items] | |
Portal Website (State) | www.TN.gov (Tennessee) |
Year Service Commenced | 2,000 |
Contract Expiration Date | Mar. 31, 2017 |
Hawaii Information Consortium, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.eHawaii.gov (Hawaii) |
Year Service Commenced | 2,000 |
Contract Expiration Date | Jan. 3, 2019 |
Hawaii Information Consortium, LLC | Renewal Term | |
Contracts [Line Items] | |
Term of contract | 3-year renewal options |
Idaho Information Consortium, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Idaho.gov (Idaho) |
Year Service Commenced | 2,000 |
Contract Expiration Date | Jun. 30, 2017 |
Utah Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Utah.gov (Utah) |
Year Service Commenced | 1,999 |
Contract Expiration Date | Jun. 5, 2019 |
Maine Information Network, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Maine.gov (Maine) |
Year Service Commenced | 1,999 |
Contract Expiration Date | Jul. 1, 2018 |
Arkansas Information Consortium, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Arkansas.gov (Arkansas) |
Year Service Commenced | 1,997 |
Contract Expiration Date | Jun. 30, 2018 |
Iowa Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Iowa.gov (Iowa) |
Year Service Commenced | 1,997 |
Contract Expiration Date | Jun. 30, 2016 |
Iowa Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Jun. 30, 2020 |
Indiana Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.IN.gov (Indiana) |
Year Service Commenced | 1,995 |
Contract Expiration Date | Jul. 31, 2016 |
Nebraska Interactive, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Nebraska.gov (Nebraska) |
Year Service Commenced | 1,995 |
Contract Expiration Date | Apr. 1, 2019 |
Nebraska Interactive, LLC | Renewal Term | |
Contracts [Line Items] | |
Contract Expiration Date | Apr. 1, 2021 |
Kansas Information Consortium, LLC | |
Contracts [Line Items] | |
Portal Website (State) | www.Kansas.gov (Kansas) |
Year Service Commenced | 1,992 |
Contract Expiration Date | Dec. 31, 2022 |
Kansas Information Consortium, LLC | Renewal Term | |
Contracts [Line Items] | |
Term of contract | annual 1-year renewal options |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Performance Shares | ||
Stock Based Compensation [Line Items] | ||
Share based compensation award shares granted in period | 138,191 | |
Share based compensation award granted in period grant-date fair value | $ 2.4 | |
Share based compensation award vesting period from date of grant | 3 years | |
Share based compensation award end date of the a three-year performance period | Dec. 31, 2018 | |
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 Return on invested capital (three-year average). | |
Performance Shares | Performance Period 2013 to 2015 | ||
Stock Based Compensation [Line Items] | ||
Share based compensation award shares earned in period | 96,732 | |
Share based compensation dividend earned on shares subject to the awards, shares | 6,990 | |
Share based compensation performance-based restricted stock awards, vesting date | Feb. 5, 2016 | |
Share based compensation performance-based restricted stock awards, grant date | Feb. 5, 2013 | |
Restricted Stock | Service Based Awards | Employees And Executives | ||
Stock Based Compensation [Line Items] | ||
Share based compensation award shares granted in period | 263,896 | |
Share based compensation award granted in period grant-date fair value | $ 4.7 | |
Share based compensation award vesting period from date of grant | 1 year | |
Restricted Stock | Service Based Awards | Employees And Executives | Annual installment | ||
Stock Based Compensation [Line Items] | ||
Share based compensation award annual installment vesting rate | 25.00% |
Stock Based Compensation Expens
Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense before income taxes | $ 1,622 | $ 2,159 |
Income tax benefit | (595) | (850) |
Net stock-based compensation expense | 1,027 | 1,309 |
Cost of portal revenues, exclusive of depreciation & amortization | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense before income taxes | 455 | 404 |
Cost of software & services revenues, exclusive of depreciation & amortization | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense before income taxes | 17 | 11 |
Selling & administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense before income taxes | $ 1,150 | $ 1,744 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Line Items] | ||
Effective tax rate | 37.00% | 39.00% |
Reportable Segment and Relate24
Reportable Segment and Related Information - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segment | 1 | |
Customer Concentration Risk | Consolidated Revenues | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 65.00% | |
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 20.00% | 22.00% |
Summary of Financial Informatio
Summary of Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 78,390 | $ 70,359 |
Costs & expenses | 56,370 | 53,322 |
Depreciation & amortization | 1,664 | 2,292 |
Operating income (loss) before income taxes | 20,356 | 14,745 |
Total segment operating income | Outsourced Portals | ||
Segment Reporting Information [Line Items] | ||
Revenues | 73,197 | 65,914 |
Costs & expenses | 43,615 | 41,494 |
Depreciation & amortization | 850 | 1,276 |
Operating income (loss) before income taxes | 28,732 | 23,144 |
Total segment operating income | Other Software & Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,193 | 4,445 |
Costs & expenses | 1,413 | 1,290 |
Depreciation & amortization | 14 | 9 |
Operating income (loss) before income taxes | 3,766 | 3,146 |
Other Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Costs & expenses | 11,342 | 10,538 |
Depreciation & amortization | 800 | 1,007 |
Operating income (loss) before income taxes | $ (12,142) | $ (11,545) |