Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Feb. 09, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NCIT | ||
Entity Registrant Name | NCI, Inc. | ||
Entity Central Index Key | 1334478 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $68,743,783 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 8,305,856 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,700,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $317,028 | $332,325 | $368,387 |
Operating expenses: | |||
Cost of revenue | 270,855 | 289,388 | 322,281 |
General and administrative expenses | 25,850 | 23,393 | 26,148 |
Depreciation and amortization | 5,692 | 6,298 | 6,926 |
Stock option tender offer | 2,311 | ||
Acquisition and integration related expenses | 150 | ||
Purchase contingency gain | -864 | ||
Impairment of goodwill and intangible assets | 150,752 | ||
Total operating expenses | 302,547 | 318,215 | 508,418 |
Operating income (loss) | 14,481 | 14,110 | -140,031 |
Interest expense, net | 406 | 784 | 1,325 |
Income (loss) before income taxes | 14,075 | 13,326 | -141,356 |
Provision (benefit) for income taxes | 5,607 | 5,588 | -54,532 |
Net income (loss) | $8,468 | $7,738 | ($86,824) |
Basic: | |||
Weighted average shares outstanding | 12,899 | 12,829 | 13,335 |
Net income (loss) per share | $0.66 | $0.60 | ($6.51) |
Diluted: | |||
Weighted average shares outstanding | 13,516 | 12,829 | 13,335 |
Net income (loss) per share | $0.63 | $0.60 | ($6.51) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $25,819 | $50 |
Accounts receivable, net | 52,856 | 63,991 |
Deferred tax assets, net | 3,950 | 3,217 |
Prepaid expenses and other current assets | 3,382 | 2,941 |
Total current assets | 86,007 | 70,199 |
Property and equipment, net | 7,371 | 9,752 |
Other assets | 1,748 | 2,113 |
Deferred tax assets, net | 37,839 | 39,990 |
Intangible assets, net | 3,719 | 5,340 |
Total assets | 136,684 | 127,394 |
Current liabilities: | ||
Accounts payable | 15,646 | 17,371 |
Accrued salaries and benefits | 16,481 | 16,645 |
Deferred revenue | 3,226 | 2,594 |
Other accrued expenses | 4,653 | 4,578 |
Total current liabilities | 40,006 | 41,188 |
Long-term debt | 1,000 | |
Other long-term liabilities | 2,901 | 3,399 |
Total liabilities | 42,907 | 45,587 |
Stockholders' equity: | ||
Additional paid-in capital | 74,406 | 70,905 |
Treasury stock at cost-917 shares of Class A common stock as of December 31, 2014 and 2013 | -8,331 | -8,331 |
Retained earnings | 27,438 | 18,970 |
Total stockholders' equity | 93,777 | 81,807 |
Total liabilities and stockholders' equity | 136,684 | 127,394 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 175 | 174 |
Total stockholders' equity | 175 | 174 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 89 | 89 |
Total stockholders' equity | $89 | $89 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Class A Common Stock [Member] | ||
Common stock, par value | $0.02 | $0.02 |
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 9,223,000 | 9,142,000 |
Common stock, shares outstanding | 8,306,000 | 8,226,000 |
Treasury stock at cost, shares | 917,000 | 917,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $0.02 | $0.02 |
Common stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares issued | 4,700,000 | 4,700,000 |
Common stock, shares outstanding | 4,700,000 | 4,700,000 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Class A Treasury Stock [Member] |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2011 | $163,801 | $174 | $89 | $69,937 | $98,056 | ($4,455) |
Beginning Balance, shares at Dec. 31, 2011 | 8,875 | 4,700 | 288 | |||
Net income (loss) | -86,824 | -86,824 | ||||
Restricted stock grants, net of forfeitures | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock grants, net of forfeitures, shares | -19 | |||||
Stock compensation expense | 4,204 | 4,204 | ||||
Exercise of stock options | 10 | 10 | ||||
Exercise of stock options, shares | 5 | |||||
Repurchase of stock options | -1,320 | -1,320 | ||||
Tax benefit from stock transactions | -3,105 | -3,105 | ||||
Purchase of Class A common stock for Treasury | -3,876 | -3,876 | ||||
Purchase of Class A common stock for Treasury, shares | -629 | 629 | ||||
Ending Balance at Dec. 31, 2012 | 72,890 | 174 | 89 | 69,726 | 11,232 | -8,331 |
Ending Balance, shares at Dec. 31, 2012 | 8,232 | 4,700 | 917 | |||
Net income (loss) | 7,738 | 7,738 | ||||
Stock compensation expense | 1,399 | 1,399 | ||||
Repurchase and cancellation of stock awards | -33 | -33 | ||||
Repurchase and cancellation of stock awards, shares | -6 | |||||
Tax benefit from stock transactions | -187 | -187 | ||||
Ending Balance at Dec. 31, 2013 | 81,807 | 174 | 89 | 70,905 | 18,970 | -8,331 |
Ending Balance, shares at Dec. 31, 2013 | 8,226 | 4,700 | 917 | |||
Net income (loss) | 8,468 | 8,468 | ||||
Stock compensation expense | 3,044 | 3,044 | ||||
Exercise of stock options | 483 | 1 | 482 | |||
Exercise of stock options, shares | 1,573 | 91 | ||||
Repurchase and cancellation of stock awards | -55 | -55 | ||||
Repurchase and cancellation of stock awards, shares | -11 | |||||
Tax benefit from stock transactions | 30 | 30 | ||||
Ending Balance at Dec. 31, 2014 | $93,777 | $175 | $89 | $74,406 | $27,438 | ($8,331) |
Ending Balance, shares at Dec. 31, 2014 | 8,306 | 4,700 | 917 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $8,468 | $7,738 | ($86,824) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Impairment of goodwill and intangible assets | 0 | 0 | 150,752 |
Depreciation and amortization | 5,692 | 6,298 | 6,931 |
Stock compensation expense | 3,044 | 1,399 | 4,204 |
Deferred income taxes | 1,419 | 3,338 | -51,851 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 11,135 | -1,698 | 32,782 |
Prepaid expenses and other assets | -72 | 7,477 | -7,197 |
Accounts payable | -1,725 | -6,777 | -5,870 |
Accrued expenses and other liabilities | -305 | -515 | -1,392 |
Net cash provided by operating activities | 27,656 | 17,260 | 41,535 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -1,467 | -1,260 | -1,785 |
Net cash used in investing activities | -1,467 | -1,260 | -1,785 |
Cash flows from financing activities: | |||
Borrowings under credit facility | 42,496 | 123,922 | 130,304 |
Repayments on credit facility | -43,496 | -140,422 | -166,804 |
Financing costs paid | -5 | -180 | -120 |
Proceeds from exercise of stock options | 482 | 10 | |
Excess tax benefit from stock transactions | 158 | ||
Repurchase of stock awards | -55 | -33 | -1,320 |
Purchase of Class A common stock for Treasury | -3,876 | ||
Net cash used in financing activities | -420 | -16,713 | -41,806 |
Net change in cash and cash equivalents | 25,769 | -713 | -2,056 |
Cash and cash equivalents, beginning of year | 50 | 763 | 2,819 |
Cash and cash equivalents, end of year | 25,819 | 50 | 763 |
Cash paid during the year for: | |||
Interest | 246 | 596 | 1,216 |
Income taxes | 2,700 | 975 | 2,657 |
Supplemental disclosure of noncash activities: | |||
Leasehold improvements acquired with tenant improvement funds | $222 | $496 |
Business_Overview
Business Overview | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business Overview | 1. Business Overview |
NCI provides enterprise services and solutions by utilizing technologies and methodologies in the following capability areas: Cloud Computing and Data Center Consolidation, Cybersecurity and Information Assurance, Engineering and Logistics Support, Enterprise Information Management and Advanced Analytics, Health IT and Clinical Support, IT Service Management, Software and Systems Development/Integration, and Training and Simulation. The Company provides these services to U.S. Defense, Intelligence, and Healthcare, and Civilian Government Agencies. Substantially all of the Company’s revenue was derived from contracts with the U.S. Federal Government, directly as a prime contractor or as a subcontractor. The Company primarily conducts business throughout the United States. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | |||
Basis of Consolidation | ||||
The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Revenue Recognition | ||||
Substantially all of the Company’s revenue is derived from services and solutions provided to the U.S. Federal Government, primarily by Company employees and, to a lesser extent, subcontractors. The Company generates its revenue from three different types of contractual arrangements: time-and-materials contracts; cost-plus fee contracts; and firm fixed-price contracts. | ||||
Revenue for time-and-materials contracts is recognized as services are performed, generally on the basis of contract allowable labor hours worked multiplied by the contract defined billing rates, plus the direct costs and indirect cost burdens associated with materials and other direct expenses used in performance on the contract. Profits on time-and-materials contracts result from the difference between the cost of services performed and the contract-defined billing rates for these services. | ||||
Generally, revenue on cost-plus fee contracts is recognized as services are performed, based on the allowable costs incurred in the period, plus any recognizable earned fee. The Company does not recognize award-fee income until the fees are fixed or determinable. Due to such timing, and to fluctuations in the level of revenue, profit as a percentage of revenue on award-fee contracts will fluctuate period to period. | ||||
Revenue recognition methods on firm fixed-price contracts will vary depending on the nature of the work and the contract terms. Revenue on firm fixed-price service contracts is recognized as services are performed. Generally, revenue is deferred until all the following have occurred: (1) there is a contract in place, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Revenue on firm fixed-price contracts that require delivery of specific items is recognized based on a price per unit as units are delivered. Revenue for firm fixed-price contracts in which the Company is paid a specific amount to provide services for a stated period of time is recognized ratably over the service period. Profits related to contracts accounted for under this method may fluctuate from period to period, particularly in the early phases of the contract. | ||||
Revenue on certain firm fixed-price contracts where the Company is designing, engineering, or manufacturing to the customer’s specifications is recognized on the percentage-of-completion method of accounting, generally using costs incurred in relation to total estimated costs to measure progress toward completion. Profits on firm fixed-price contracts result from the difference between the incurred costs and the revenue earned. Contract accounting requires significant judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Due to the size and nature of many of the Company’s contracts, the estimation of total revenue and cost at completion requires the use of estimates. Contract costs include material, labor, and subcontracting costs, as well as an allocation of allowable indirect costs. Assumptions have to be made regarding the length of time to complete the contract because costs also include expected increases in wages and prices for materials. For contract change orders, claims or similar items, the Company applies judgment in estimating the amounts and assessing the potential for realization. These amounts are only included in contract value when they can be reliably estimated and realization is considered probable. Estimates of total contract revenue and costs are continuously monitored during the term of the contract and are subject to revision as the contract progresses. Anticipated losses on contracts accounted for under the percentage-of-completion method are recognized in the period they are deemed probable and can be reasonably estimated. | ||||
Cash and Cash Equivalents | ||||
The Company considers cash on deposit and all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. | ||||
Fair Value Measurements | ||||
The Company’s financial assets and liabilities are measured at fair value which is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. Valuation techniques are based on observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. | ||||
These two types of inputs have created the following fair value hierarchy: | ||||
• | Level 1 — Quoted prices for identical instruments in active markets. | |||
• | Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant value drivers are observable. | |||
• | Level 3 — Valuations derived from valuation techniques in which significant value drivers are unobservable. | |||
The carrying values of cash and cash equivalents, contract receivables and accounts payable approximate fair value because of the short-term nature of these instruments. The Company’s nonfinancial assets measured at fair value on a nonrecurring basis include intangible assets and long-lived tangible assets including property and equipment. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions. As such, the Company classifies nonfinancial assets subject to nonrecurring fair value adjustments at Level 3 measurements. The carrying value of the long-term debt approximates fair value because the interest rate is variable and therefore deemed to reflect a market rate of interest. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Accounts receivable are recorded at face amount, less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts at an amount that it estimates to be sufficient to cover the risk of collecting less than full payment on receivables. On a quarterly basis, the Company reevaluates its receivables, especially receivables that are past due, and reassesses the allowance for doubtful accounts primarily based on specific customer collection issues. | ||||
Property and Equipment | ||||
Property, equipment, and leasehold improvements are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range from three to seven years for furniture and equipment, over the shorter of the lease term or the useful lives for leasehold improvements, and 30 years for real property. | ||||
Long-Lived Assets (Excluding Intangible Assets) | ||||
A review of long-lived assets for impairment is performed annually or when events or changes in circumstances indicate the carrying value of such assets may not be recoverable. If an indicator of impairment is present, the Company compares the estimated undiscounted future cash flows to be generated by the asset to its carrying amount. If the undiscounted future cash flows are less than the carrying amount of the asset, the Company records an impairment loss equal to the excess of the asset’s carrying amount over its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Based on the analysis performed, the Company determined that there were no such impairments, nor indicators of impairments, for such assets during 2014, 2013 or 2012. | ||||
Goodwill and Intangible Assets | ||||
Goodwill represents the excess of cost over fair value of net tangible and identifiable intangible assets of acquired companies. Goodwill is reviewed for impairment annually or when events or changes in circumstances indicate the carrying value exceeds the implied fair value. NCI performs its annual goodwill impairment analysis on October 1 of each year. A two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized. The first step is used to identify any potential impairment by comparing the fair value of the Company with its carrying amount. The second step is used to measure the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of goodwill. If goodwill becomes impaired, the Company would record a charge to earnings in the financial statements during the period in which any impairment of goodwill is determined. | ||||
During 2012, in accordance with the Company’s annual testing and due to its depressed market value, the continued uncertainty in funding levels of various Federal Government agencies and the ongoing delays of expected contract procurement opportunities, the Company performed two goodwill impairment analyses with the assistance of a third party valuation specialist. The results of these analyses indicated that the Company’s goodwill was impaired, and therefore the Company recorded an impairment charges totaling $150.3 million and a tax benefit totaling $58.0 million in 2012. | ||||
Intangible assets consist of acquisition-related contracts and customer relationships and non-compete agreements. Contract and customer relationships are amortized over the expected backlog life based on projected cash flows, which are proportionate to acquired backlog, or generally between three to 11 years. Non-compete agreements are amortized over their contractual life, which is between three to five years. | ||||
Intangible assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the intangible asset many not be fully recoverable. An impairment loss is recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets and will result in a reduction of earnings in the period incurred. | ||||
There were no goodwill impairment charges in 2014 or 2013. | ||||
Common Stock | ||||
Holders of Class A common stock are entitled to one vote for each share held of record, and holders of Class B common stock are entitled to 10 votes for each share held of record, except with respect to any “going private transaction,” as to which each share of Class A common stock and Class B common stock are both entitled to one vote per share. The Class A common stock and the Class B common stock vote together as a single class on all matters submitted to a vote of stockholders, including the election of directors, except as required by law. Holders of the Company’s common stock do not have cumulative voting rights in the election of directors. Each share of Class B common stock is convertible into one share of Class A common stock at any time at the option of the Class B stockholder, and in certain other circumstances. During 2011, the Class B common stock holder transferred ownership of 500,000 shares of Class B common stock to the control of an unrelated party for estate planning purposes. This transfer resulted in the conversion of the Class B common stock to Class A common stock. | ||||
Holders of common stock are entitled to receive, when and if declared by the Board of Directors from time to time, such dividends and other distributions in cash, stock or property from the Company’s assets or funds legally available for such purposes. Each share of Class A common stock and Class B common stock is equal with respect to dividends and other distributions in cash, stock or property, except that in the case of stock dividends, only shares of Class A common stock will be distributed with respect to the Class A common stock and only shares of Class B common stock will be distributed with respect to Class B common stock. | ||||
Segment Information | ||||
Management has concluded that the Company operates in one segment based upon the information used by the Chief Operating Decision Maker in evaluating the performance of its business and allocating resources and capital. | ||||
Income Taxes | ||||
We periodically assess our tax filing exposures related to periods that are open to examination. Based on the latest available information, we evaluate tax positions to determine whether the position will more likely than not be sustained upon examination by the applicable tax authorities. The Company recognizes liabilities for uncertain tax positions on open tax years when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured at the Company’s best estimate of the taxes ultimately expected to be paid. If we determine that the tax position is more likely than not to be sustained, we record the largest amount of benefit that is more likely than not to be realized when the tax position is settled. If we cannot reach that determination, no benefit is recorded. We record interest and penalties related to income taxes as Interest Expense and General and Administrative Expenses in the Consolidated Statement of Operations, respectively. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most of the current revenue recognition guidance under U.S. GAAP when it becomes effective for annual periods beginning after December 15, 2016, and interim periods therein. While this new accounting standard will not affect the Company until the Company’s 2017 fiscal year, it does require either a full retrospective approach reflecting the application of the standard in each prior reporting period, or a retrospective approach with the cumulative effect of initially adopting the ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). | |
The main principle of ASU 2014-09 is that revenue should be recognized when contracted goods or services are transferred to customers in an amount that reflects the consideration that the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five step process to achieve this new principle which will require entities to apply significantly more management judgment and may require the use of more estimates than are required under existing U.S. GAAP. NCI is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s consolidated financial statements and has not yet determined the method by which NCI will adopt the standard in 2017. | |
In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40), which provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about the related footnote disclosures. It becomes effective for annual periods beginning after December 15, 2016, and interim periods thereafter. While this new accounting standard will not affect the Company until the Company’s 2017 fiscal year, early application is permitted. | |
Currently there is no guidance in U.S. GAAP surrounding management’s responsibility to evaluate whether substantial doubt exists about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this update require management to evaluate an entity’s ability to continue as a going concern by incorporating and building upon principles that already exist in U.S. GAAP. Specifically, the amendments provide a definition of the term substantial doubt, require management to make an evaluation every reporting period including interim periods, provide principles for evaluating the mitigation effect of management’s plans and require certain disclosures when substantial doubt is mitigated as a result of management’s plans. It also requires a short statement and additional disclosures when substantial doubt is not mitigated, and requires as assessment for a period of one year after the date that the financial statements are issued. NCI is currently evaluating the impact of the pending adoption of ASU 2014-15 on the Company’s financial statements and disclosures when NCI adopts the standard in 2017. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 4. Earnings Per Share | ||||||||||||
Basic earnings per share exclude dilution and are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Diluted earnings per share include the incremental effect of stock options calculated using the treasury stock method and contingently issuable potential common shares that could share in our income if options containing a market condition that was met during the twelve months were exercised. Shares that are anti-dilutive are not included in the computation of diluted earnings per share. NCI has both Class A and Class B shares and both share the same rights and preferences and thus the two-class method does not result in a different outcome and is therefore not presented. For the years ended December 31, 2014, 2013 and 2012, approximately 44,000, 1,258,000 and 1,243,000 shares, respectively, were not included in the computation of diluted earnings per share, because to do so would have been anti-dilutive. The following details the historical computation of basic and diluted earnings per common share (Class A and Class B) for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net income (loss) | $ | 8,468 | $ | 7,738 | $ | (86,824 | ) | ||||||
Weighted average number of basic shares outstanding during the year | 12,899 | 12,829 | 13,335 | ||||||||||
Dilutive effect of stock options after application of treasury stock method | 617 | — | — | ||||||||||
Weighted average number of diluted shares outstanding during the year | 13,516 | 12,829 | 13,335 | ||||||||||
Basic earnings (loss) per share | $ | 0.66 | $ | 0.6 | $ | (6.51 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.63 | $ | 0.6 | $ | (6.51 | ) |
Major_Customers
Major Customers | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Major Customers | 5. Major Customers | ||||||||||||||||||||||||
The Company earned substantially all of its revenue from the U.S. Federal Government for each of the years ended December 31, 2014, 2013 and 2012. During 2014, 2013 and 2012, the Company’s PEO Soldier contract accounted for revenue in the amounts of $36.5 million, $46.0 million and $62.4 million, respectively. The Company’s PEO Soldier contract is a cost-plus fee contract consisting of a base period and two option periods for a total term of three years which commenced in September 2012. Revenue by customer for each of the three years ended December 31 was as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Defense and Intelligence Agencies | $ | 237,194 | 75 | % | $ | 249,463 | 75 | % | $ | 280,795 | 76 | % | |||||||||||||
Federal Civilian Agencies | $ | 79,834 | 25 | % | $ | 82,862 | 25 | % | $ | 87,592 | 24 | % |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Accounts Receivable | 6. Accounts Receivable (in thousands) | ||||||||||||
Accounts receivable consist of billed and unbilled amounts at the end of each year: | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Billed receivables | $ | 25,231 | $ | 31,398 | |||||||||
Unbilled receivables: | |||||||||||||
Amounts billable at end of year | 21,677 | 19,215 | |||||||||||
Other | 6,690 | 14,166 | |||||||||||
Total unbilled receivables | 28,367 | 33,381 | |||||||||||
Total accounts receivable | 53,598 | 64,779 | |||||||||||
Less: allowance for doubtful accounts | 742 | 788 | |||||||||||
Total accounts receivable, net | $ | 52,856 | $ | 63,991 | |||||||||
Other unbilled receivables primarily consist of amounts that will be billed upon milestone completions and other accrued amounts that cannot be billed as of the end of the period. All unbilled receivables are expected to be billed and collected within the next year. | |||||||||||||
The following table details the Allowance for Doubtful Accounts for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 788 | $ | 802 | $ | 590 | |||||||
Charged to expense | — | 62 | 647 | ||||||||||
Deductions | (46 | ) | (76 | ) | (435 | ) | |||||||
Balance at end of year | $ | 742 | $ | 788 | $ | 802 | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 7. Property and Equipment (in thousands) | ||||||||
The following table details property and equipment at the end of each year: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 23,896 | $ | 23,054 | |||||
Leasehold improvements | 9,221 | 8,488 | |||||||
Real property | 549 | 549 | |||||||
33,666 | 32,091 | ||||||||
Less: Accumulated depreciation and amortization | 26,295 | 22,339 | |||||||
Property and equipment, net | $ | 7,371 | $ | 9,752 | |||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $4.1 million, $4.6 million and $4.7 million, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets | 8. Intangible Assets (in thousands) | ||||||||
The following table details intangible assets at the end of each year: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Contract and customer relationships | $ | 20,987 | $ | 20,987 | |||||
Less: Accumulated amortization | 17,268 | 15,647 | |||||||
Intangible assets, net | $ | 3,719 | $ | 5,340 | |||||
Amortization expense of intangible assets for the years ended December 31, 2014, 2013 and 2012 was $1.6 million, $1.7 million and $2.6 million, respectively. Future amortization expense related to intangible assets is expected to be as follows: | |||||||||
For the year ending December 31, | |||||||||
2015 | $ | 1,178 | |||||||
2016 | 616 | ||||||||
2017 | 603 | ||||||||
2018 | 492 | ||||||||
2019 | 391 | ||||||||
Thereafter | 439 | ||||||||
$ | 3,719 |
Restructuring_Charge
Restructuring Charge | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Charge | 9. Restructuring Charge (in thousands) | ||||
During December 2011, management committed to, implemented, and completed a restructuring plan. The restructuring was done to reduce costs through downsizing our existing work force and physical locations. | |||||
The activity and balance of the restructuring liability accounts for the years ended December 31, 2014 and 2013 are as follows: | |||||
Lease and | |||||
Facilities Exit | |||||
Costs | |||||
Balance as of January 1, 2013 | $ | 1,573 | |||
Cash payments and adjustments | (645 | ) | |||
Balance as of December 31, 2013 | 928 | ||||
Cash payments and adjustments | (543 | ) | |||
Balance as of December 31, 2014 | $ | 385 | |||
Amounts contained in balance sheet as of December 31, 2014 | |||||
Other accrued expenses | 218 | ||||
Other long-term liabilities | 167 | ||||
Total | $ | 385 | |||
The accrued amounts related to the lease and facilities exit costs will be reduced over the respective lease terms, the longest of which extends through 2017. |
Other_Accrued_Expenses
Other Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Other Accrued Expenses | 10. Other Accrued Expenses (in thousands) | ||||||||
Other accrued expenses consist of the following at the end of each year: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued health claims | $ | 1,506 | $ | 1,881 | |||||
Deferred rent, current | 751 | 573 | |||||||
Restructuring charge, current | 218 | 366 | |||||||
Other accrued expenses | 2,178 | 1,758 | |||||||
Total other accrued expenses | $ | 4,653 | $ | 4,578 | |||||
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Leases | 11. Leases | ||||
The Company leases office space and equipment under operating leases that expire on various dates through August 31, 2019. Several of the leases contain escalation clauses ranging from 2.5% to 5.0% per year, which are reflected in the amounts below. | |||||
Minimum lease payments under the Company’s non-cancelable operating leases are as follows: | |||||
Operating | |||||
leases | |||||
(in thousands) | |||||
For the year ending December 31, | |||||
2015 | $ | 5,497 | |||
2016 | 3,942 | ||||
2017 | 3,256 | ||||
2018 | 1,572 | ||||
2019 | 93 | ||||
Thereafter | — | ||||
Total minimum lease payments | $ | 14,360 | |||
The Company incurred rent expense including amortization of deferred rent expense, under operating leases of $5.4 million, $6.7 million, and $8.1 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt |
The Company’s senior credit facility consists of a revolving line of credit with a borrowing capacity of up to an $80.0 million principal amount, and a $45.0 million accordion feature allowing us to increase our borrowing capacity to up to a $125.0 million principal amount, subject to obtaining commitments for the incremental capacity from existing or new lenders. The outstanding borrowings are collateralized by a security interest in substantially all the Company’s assets. The lenders also require a direct assignment of all contracts at the lenders’ discretion. The outstanding balance under the credit facility accrues interest based on one-month LIBOR plus an applicable margin, ranging from 210 to 310 basis points, based on the ratio of our outstanding senior funded debt to Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) as defined in the credit facility agreement. | |
During the fourth quarter of 2014, we amended our credit facility. The Amendment modifies certain provisions of the Company’s Amended and Restated Loan and Security Agreement, including, among other things, (i) definitions for the “Commodity Exchange Act”, “Excluded Swap Obligation”, “Qualified ECP Borrower”, and “Swap Obligation”, (ii) the Obligations (as defined in the Loan Agreement), shall not include Excluded Swap Obligations, (iii) the form of Exhibit A referenced in the definition of “Covenant Compliance Certificate” contained in Section 1 of the Loan Agreement was amended to read as set forth in Annex 1 of the Loan Agreement, (iv) a change in the definition of “Index Rate”, and (v) the deletion of the definition of “Minimum Tangible Net Worth Compliance Level” and “Tangible Net Worth” from Section 1 of the Loan Agreement. The accrued interest is due and payable monthly. The credit facility expires on January 31, 2017. The Company does not currently hedge our interest rate risk. | |
The credit facility contains various restrictive covenants that, among other things, restrict our ability to incur or guarantee additional debt; make certain distributions, investments and other restricted payments; enter into transactions with certain affiliates; create or permit certain liens; and consolidate, merge, or sell assets. In addition, the credit facility contains certain financial covenants that require us to maintain a minimum tangible net worth; maintain a minimum fixed charge coverage ratio and a minimum funded debt to earnings ratio; and limit capital expenditures below certain thresholds. Funds borrowed under the credit facility will be used to finance possible future acquisitions, for working capital requirements, for stock repurchases, and for general corporate uses. The amendment to the credit facility allows the Company to use borrowings thereunder of up to $17.5 million to repurchase shares of our common stock. For a discussion of share repurchases, see Note 13—Stock Repurchase. | |
As of December 31, 2014, the Company was in compliance with all our loan covenants. | |
For the years ending December 31, 2014, 2013, and 2012, NCI had a weighted average outstanding loan balance of $1.3 million, $12.5 million, and $36.3 million, respectively, and a weighted average borrowing rate of 2.3%, 2.3%, and 2.5%, respectively. | |
As of December 31, 2014, the outstanding balance under the credit facility was $0.0 million. Interest would accrue at a rate of LIBOR plus 210 basis points, or 2.3%, on future borrowings. As of December 31, 2013, the outstanding balance under the credit facility was $1.0 million and interest accrued at a rate of LIBOR plus 210 basis points, or 2.3%. As of December 31, 2013 and 2012, the Company was in compliance with all of its loan covenants. |
Stock_Repurchase
Stock Repurchase | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stock Repurchase | 13. Stock Repurchase |
NCI’s Board of Directors authorized management to repurchase up to $25.0 million of our Class A common stock pursuant to a stock repurchase program. Shares may be repurchased pursuant to open market purchases, privately negotiated transactions, or block transactions. NCI has no obligation to repurchase shares under the authorization, and the timing, actual number and value of the shares which are repurchased (and the manner of any such repurchase) will be at the discretion of management and will depend on a number of factors, including the price of our common stock, the Company’s cash needs, borrowing capacity under our credit facility, interest rates, and the Company’s financial performance and position, among other factors. NCI may suspend or discontinue repurchases at any time. | |
During 2012, the Company purchased 628,782 shares at an average price of $6.14 per share for a total purchase price of $3.9 million. During 2014 and 2013, the Company did not purchase any shares. At December 31, 2014, we had $16.7 million remaining under the Board of Directors’ authorization for share repurchases. |
Stock_Option_Tender_Offer
Stock Option Tender Offer | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Stock Option Tender Offer | 14. Stock Option Tender Offer |
In September 2012, the Company completed a cash tender offer for certain vested and unvested out-of-the-money stock options held by current and former employees, officers, and directors of NCI that were granted prior to January 1, 2012, provided that such stock options had not expired or terminated prior to the expiration of the offering period. The Company repurchased a total of 963,579 options for an aggregate cash purchase price of $1.3 million, which was paid in exchange for the cancellation of the eligible options. As a result of these repurchases, the Company incurred a charge of $2.3 million consisting of a non-cash charge of $2.2 million that included the remaining unamortized stock based compensation expense associated with the unvested portion of the repurchased options and a small amount paid in excess of the estimated fair value of the options on the date of purchase, plus $0.1 million related to associated payroll taxes, professional fees and other costs. | |
The aggregate amount of the payments made in exchange for eligible options was charged to stockholder’s equity for stock options purchased at or below the estimated fair value of the options on the date of repurchase, which was the $1.3 million cash purchase price. |
Performance_Incentive_Plan
Performance Incentive Plan | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Postemployment Benefits [Abstract] | |||||
Performance Incentive Plan | 15. Performance Incentive Plan | ||||
The Board of Directors of the Company has adopted The Amended and Restated 2005 Performance Incentive Plan (the Plan), which has been approved by the Company’s stockholders. As of December 31, 2014, the Plan has reserved 4,100,000 shares of Class A common stock for issuance, which increases annually by 100,000 shares. The Plan provides for the grant of incentive stock options and non-qualified stock options, and the grant or sale of restricted shares of common stock to the Company’s directors, employees, and consultants. The Compensation Committee of the Company administers the Plan. | |||||
As of December 31, | |||||
2014 | |||||
(in thousands) | |||||
Shares reserved under the plan | 4,100 | ||||
Shares vested and options exercised | 1,573 | ||||
Restricted shares and options outstanding | 1,711 | ||||
Shares available for future grants | 816 | ||||
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Share-Based Payments | 16. Share-Based Payments | ||||||||||||||||||||||||
Compensation expense for all stock-based awards is measured at fair value on the date of grant and recognition of compensation expense is recorded over the requisite service period for awards expected to vest. The Company determines the fair value of our stock options using the Black-Scholes-Merton valuation model or other models that incorporate into the valuation the possibility that market conditions may not be satisfied. The application of the Black-Scholes-Merton model to the valuation of options requires the use of input assumptions, including expected volatility, expected term, expected dividend yield, and expected risk-free interest rate. During 2014, approximately 737,000 of the options granted in June of 2013 vested on an accelerated vesting schedule after the Company’s stock price reached two discrete acceleration milestones of a continuous 30-day average stock price of $8.00 and $10.00 per share, respectively. This accelerated vesting added approximately $1.1 million and $0.4 million in additional stock compensation costs to general and administrative expenses and cost of revenue, respectively. | |||||||||||||||||||||||||
Assumptions Used in Fair Value determination | |||||||||||||||||||||||||
The following weighted-average assumptions were used for option grants made during the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected Volatility | 56.3 | % | 56 | % | 53.5 | % | |||||||||||||||||||
Expected Term (in years) | 4.6 | 5 | 4.7 | ||||||||||||||||||||||
Risk-free Interest Rate | 1.7 | % | 1.2 | % | 0.9 | % | |||||||||||||||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
• | Expected Volatility. The expected volatility of the Company’s shares was estimated based upon the historical volatility of the Company’s share price. | ||||||||||||||||||||||||
• | Expected Term. Because the Company does not have significant historical data on employee exercise behavior, it uses the “Simplified Method” as defined under SEC Staff Accounting Bulletin No. 110 to calculate the expected term. The simplified method is calculated by averaging the vesting period and contractual term of the option. | ||||||||||||||||||||||||
• | Risk-free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation method on the implied yield available on a U.S. Treasury note with a term equal to the expected term of the underlying grants. | ||||||||||||||||||||||||
• | Dividend Yield. The Black-Scholes-Merton valuation model calls for a single expected dividend yield as an input. | ||||||||||||||||||||||||
Stock Options Activity | |||||||||||||||||||||||||
The following table summarizes stock option and restricted stock activity for the period January 1, 2012 through December 31, 2014: | |||||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||||||
Options | Average | ||||||||||||||||||||||||
(in thousands) | Exercise Price | ||||||||||||||||||||||||
per Share | |||||||||||||||||||||||||
Outstanding at January 1, 2012 | 1,364 | $ | 18.14 | ||||||||||||||||||||||
Granted | 679 | 6.7 | |||||||||||||||||||||||
Forfeited/cancelled | (1,362 | ) | 18 | ||||||||||||||||||||||
Exercised | (5 | ) | 1.9 | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 676 | $ | 7.07 | ||||||||||||||||||||||
Granted | 1,230 | 4.59 | |||||||||||||||||||||||
Forfeited/cancelled | (121 | ) | 5.96 | ||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,785 | $ | 5.43 | ||||||||||||||||||||||
Granted | 60 | 9.33 | |||||||||||||||||||||||
Forfeited/cancelled | (87 | ) | 7.83 | ||||||||||||||||||||||
Exercised | (91 | ) | 5.04 | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 1,667 | $ | 5.44 | ||||||||||||||||||||||
Vested or expected to vest at December 31, 2014 | 1,417 | $ | 2.72 | ||||||||||||||||||||||
Exercisable at December 31, 2014 | 987 | $ | 5.17 | ||||||||||||||||||||||
The following table summarizes stock option vesting and nonvested options for the period January 1, 2012 through December 31, 2014: | |||||||||||||||||||||||||
Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | ||||||||||||||||||||||
Options | Average | Restricted Shares | Average | ||||||||||||||||||||||
(in thousands) | Fair Value | (in thousands) | Fair Value | ||||||||||||||||||||||
Nonvested January 1, 2012 | 593 | $ | 9.07 | 165 | $ | 18.25 | |||||||||||||||||||
Granted | 679 | 3.01 | 25 | 7.28 | |||||||||||||||||||||
Vested | (164 | ) | 9.36 | (23 | ) | 19.01 | |||||||||||||||||||
Forfeited | (459 | ) | 8.66 | (44 | ) | 15.62 | |||||||||||||||||||
Nonvested December 31, 2012 | 649 | $ | 3.05 | 123 | $ | 16.81 | |||||||||||||||||||
Vested December 31, 2012 | 27 | $ | 4.6 | ||||||||||||||||||||||
Granted | 1,230 | 2.21 | — | — | |||||||||||||||||||||
Vested | (174 | ) | 2.92 | (39 | ) | 16.73 | |||||||||||||||||||
Forfeited | (139 | ) | 2.64 | — | 20.01 | ||||||||||||||||||||
Nonvested December 31, 2013 | 1,566 | $ | 2.45 | 84 | $ | 16.58 | |||||||||||||||||||
Vested December 31, 2013 | 194 | $ | 3.09 | ||||||||||||||||||||||
Granted | 60 | 4.44 | — | — | |||||||||||||||||||||
Vested | (859 | ) | 2.24 | (29 | ) | 17.46 | |||||||||||||||||||
Forfeited | (87 | ) | 7.83 | (11 | ) | 16.61 | |||||||||||||||||||
Nonvested December 31, 2014 | 680 | $ | 2.72 | 44 | $ | 15.97 | |||||||||||||||||||
Vested December 31, 2014 | 987 | $ | 2.4 | ||||||||||||||||||||||
The following table summarizes stock options outstanding at December 31, 2014: | |||||||||||||||||||||||||
Range of exercise prices | Number of | Weighted- | Intrinsic Value | Weighted-Average | Options | Intrinsic Value | |||||||||||||||||||
Options | Average | Outstanding | Remaining | exercisable | Vested Options | ||||||||||||||||||||
Exercise Price | Options | Contractual Life | |||||||||||||||||||||||
(in thousands) | (in thousands) | (in years) | (in thousands) | (in thousands) | |||||||||||||||||||||
$1.00 – $6.99 | 1,185 | $ | 4.55 | $ | 6,702 | 5.51 | 775 | $ | 4,385 | ||||||||||||||||
$7.00 – $12.99 | 482 | 7.61 | 1,260 | 4.61 | 212 | 589 | |||||||||||||||||||
1,667 | $ | 5.44 | $ | 7,962 | 5.2 | 987 | $ | 4,974 | |||||||||||||||||
Stock options and restricted stock granted generally vest over a period of three to five years from the date of grant in accordance with the individual stock option agreement. Stock option awards that contain both service and market vesting conditions, which require one of the other condition to be met in order to vest, are vested over a period of one and a half to two and a half years from the date of the grant. The maximum contractual term of stock options is seven years. | |||||||||||||||||||||||||
The following table summarizes stock compensation for the three years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cost of revenue | $ | 667 | $ | 283 | $ | 637 | |||||||||||||||||||
General and administrative | 2,377 | 1,116 | 1,323 | ||||||||||||||||||||||
Stock option tender offer | — | — | 2,244 | ||||||||||||||||||||||
$ | 3,044 | $ | 1,399 | $ | 4,204 | ||||||||||||||||||||
As of December 31, 2014, there was $1.2 million of total unrecognized compensation cost of unvested stock compensation arrangements. This cost is expected to be fully amortized over the next three years, with $0.9 million, $0.2 million, and $0.1 million amortized during 2015, 2016, and 2017, respectively. These future costs include an estimated forfeiture rate. Our stock compensation costs may differ based on actual experience. The cost of stock compensation is included in the Company’s Consolidated Statements of Operations before, or in conjunction with, the vesting of options. | |||||||||||||||||||||||||
The following table summarizes cash proceeds received, intrinsic value realized, and income tax benefits realized for the three years ending December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cash proceeds received | $ | 482 | $ | — | $ | 10 | |||||||||||||||||||
Intrinsic value realized | 4,754 | 106 | 11 | ||||||||||||||||||||||
Income tax benefits realized | 32 | 45 | 4 |
Provision_for_Income_Taxes
Provision for Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision for Income Taxes | 17. Provision for Income Taxes | ||||||||||||
Significant components of the provision for income taxes for the three years ended December 31, 2014, 2013, and 2012 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 3,380 | $ | 1,652 | $ | (2,566 | ) | ||||||
State and Local | 780 | 599 | (100 | ) | |||||||||
Total Current | 4,160 | 2,251 | (2,666 | ) | |||||||||
Deferred | |||||||||||||
Federal | 941 | 2,490 | (43,577 | ) | |||||||||
State and Local | 506 | 847 | (8,289 | ) | |||||||||
Total Deferred | 1,447 | 3,337 | (51,866 | ) | |||||||||
Total Income Tax Provision | $ | 5,607 | $ | 5,588 | $ | (54,532 | ) | ||||||
The differences between the expense (benefit) from income taxes at the statutory U.S. Federal income tax rate of 34% and those reported in the Statements of Operations are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax at statutory rates | 34 | % | 34 | % | 35 | % | |||||||
State income taxes, net of Federal benefit | 5.6 | 7.2 | 4.1 | ||||||||||
Other | 0.2 | 0.7 | (0.5 | ) | |||||||||
Total income tax expense | 39.8 | % | 41.9 | % | 38.6 | % | |||||||
Other differences include, among other things, the nondeductible portion of meals and entertainment and a small portion of the goodwill impairment that is not deductible for tax purposes. | |||||||||||||
Deferred income taxes arise from temporary differences in the recognition of income and expense for income tax purposes and were computed using the liability method reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. | |||||||||||||
Components of the Company’s deferred tax assets and liabilities are as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Accrued vacation and compensation | $ | 2,400 | $ | 1,871 | |||||||||
Intangible assets excluding goodwill | 3,705 | 3,753 | |||||||||||
Stock compensation | 1,455 | 592 | |||||||||||
Restructuring charge and other accrued liabilities | 1,617 | 1,603 | |||||||||||
Accounts receivable | 60 | 59 | |||||||||||
Allowance for doubtful accounts | 286 | 302 | |||||||||||
Deferred rent | 1,037 | 1,045 | |||||||||||
Goodwill | 32,178 | 35,868 | |||||||||||
Total deferred tax assets | 42,738 | 45,093 | |||||||||||
Less: valuation allowance | (196 | ) | — | ||||||||||
Total net deferred tax assets | 42,542 | 45,093 | |||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (753 | ) | (1,886 | ) | |||||||||
Total deferred tax liabilities | (753 | ) | (1,886 | ) | |||||||||
Net deferred tax asset | $ | 41,789 | $ | 43,207 | |||||||||
Deferred tax assets are evaluated to determine if the future tax deductions will be realizable. Future realization of tax benefits ultimately depends on the existence of sufficient taxable income within the appropriate period that is available under the tax law. All available evidence was considered to determine if a valuation allowance for deferred tax assets was needed. Based primarily on recent earnings history and actual taxable income, as well as projections of future taxable income, management believes there is sufficient positive evidence to conclude that it is more likely than not that substantially all of the deferred tax assets are fully realizable and no valuation allowance is necessary. | |||||||||||||
The Company’s analysis of uncertain tax positions determined that the Company had no uncertain tax positions and as such, no liability has been recorded as of December 31, 2014 and 2013. | |||||||||||||
The Company is subject to income taxes in the U.S. and various state jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. Tax years related to U.S. Federal and various state jurisdictions remain subject to examination for tax periods ended on or after December 31, 2011. |
Profit_Sharing
Profit Sharing | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Profit Sharing | 18. Profit Sharing |
The Company has a 401(k) profit sharing plan that covers substantially all NCI employees meeting certain criteria. The plan is a “defined contribution plan” whereby participants have the option of contributing to the plan. The plan provides for the Company to contribute 50 cents for each dollar contributed by the employee, up to the first 6% of their contribution. The participants are vested 100% in their employee contributions immediately. The participants become fully vested in the employer contributions ratably over four years of service. | |
The Company’s contributions for the years ended December 31, 2014, 2013 and 2012 were approximately $2.4 million, $2.3 million and $2.9 million, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions |
The Company purchased services under a subcontract from Renegade Technology, Inc., which is a Government contractor wholly-owned by Rajiv Narang, the son of Charles K. Narang, the Chairman and Chief Executive Officer of the Company. The Company purchased services from Renegade Technology, Inc. of approximately $1.1 million, $0.7 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014 and 2013, there were no amounts due to Renegade Technology, Inc. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 20. Contingencies |
Government Audits | |
Payments to the Company on U.S. Federal Government contracts are subject to adjustment upon audit by various agencies of the U.S. Federal Government. Audits of costs and the related payments have been performed by the various agencies through 2007 for NCI Information Systems, Inc., our primary corporate vehicle for Government contracting. In the opinion of management, the final determination of costs and related payments for unaudited years will not have a material effect on the Company’s financial position, results of operations, or liquidity. | |
Litigation | |
The Company is party to various legal actions, claims, government inquiries, and audits resulting from the normal course of business. The Company believes that the probability is remote that any resulting liability will have a material effect on the Company’s financial position, results of operations, or liquidity. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events |
Acquisition of Computech, Inc. | |
On January 1, 2015, the Company completed its purchase of 100% of the stock of Computech, Inc., a leader in agile and lean application software development and IT operations and maintenance, for approximately $56 million, net of cash acquired. The acquisition was financed through a combination of cash on hand and borrowings of $34 million under the Company’s senior credit facility. | |
The acquisition of Computech, Inc. is in line with the Company’s growth strategy, which calls for the development of new customers and service offerings both organically and through mergers and acquisitions. The Company expects to allocate the purchase price between goodwill, customer relationships, covenants not to compete, and property and equipment. All goodwill and intangible asset amortization related to the acquisition of Computech, Inc. is expected to be deductible for income tax purposes. The Company will include the results of Computech, Inc. in its financial statements from the close date forward. | |
In accordance with Accounting Standards Codification 805, Business Combinations, a public entity is required to disclose pro forma information for business combinations that are material on an individual or aggregate basis that occurred in the current reporting period or that occurred subsequent to the current reporting period and before the filing of the Company’s financial statements, unless it is impracticable to do so. At the present time, management is completing its valuation of acquired assets and assumed liabilities, and expects that a majority of the purchase price will be allocated to intangible assets, including goodwill, backlog and customer relationships, and developed software. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. The initial purchase price allocation is based upon all information available to the Company at the present time and is subject to change, and such changes could be material. | |
Dividends | |
On February 10, 2015, the Company’s Board of Directors declared a special dividend of $0.12 per share of the Company’s common stock payable on March 13, 2015 to stockholders of record on February 25, 2015. |
Supplemental_Quarterly_Informa
Supplemental Quarterly Information (unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Supplemental Quarterly Information (unaudited) | 22. Supplemental Quarterly Information (unaudited, in thousands) | ||||||||||||||||||||||||||||||||
This data is unaudited, but in the opinion of management, includes and reflects all adjustments that are normal and recurring in nature, and necessary, for a fair presentation of the selected data for these interim periods. Quarterly financial operating results of the Company for the years ended December 31, 2014 and 2013 are presented below. | |||||||||||||||||||||||||||||||||
For the quarter ended | |||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||||||||||
Revenue | $ | 74,440 | $ | 75,660 | $ | 77,845 | $ | 89,084 | $ | 79,895 | $ | 77,918 | $ | 82,971 | $ | 91,541 | |||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||
Cost of revenue | 62,822 | 64,102 | 65,929 | 78,003 | 69,087 | 67,832 | 71,991 | 80,477 | |||||||||||||||||||||||||
General and administrative expenses | 5,883 | 6,205 | 6,364 | 7,399 | 5,583 | 5,819 | 6,129 | 5,861 | |||||||||||||||||||||||||
Depreciation and amortization | 1,390 | 1,401 | 1,450 | 1,449 | 1,475 | 1,679 | 1,527 | 1,618 | |||||||||||||||||||||||||
Acquisition and integration related expenses | 150 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Purchase contingency gain | — | — | — | — | — | (864 | ) | — | — | ||||||||||||||||||||||||
Total operating costs and expenses | 70,245 | 71,708 | 73,743 | 86,851 | 76,145 | 74,466 | 79,647 | 87,956 | |||||||||||||||||||||||||
Operating income | 4,195 | 3,952 | 4,102 | 2,233 | 3,750 | 3,452 | 3,324 | 3,585 | |||||||||||||||||||||||||
Interest expense, net | 104 | 95 | 82 | 126 | 128 | 157 | 248 | 251 | |||||||||||||||||||||||||
Income before income taxes | 4,091 | 3,857 | 4,020 | 2,107 | 3,622 | 3,295 | 3,076 | 3,334 | |||||||||||||||||||||||||
Provision (benefit) for income taxes | 1,651 | 1,495 | 1,594 | 866 | 1,621 | 1,344 | 1,265 | 1,359 | |||||||||||||||||||||||||
Net income | $ | 2,440 | $ | 2,362 | $ | 2,426 | $ | 1,241 | $ | 2,001 | $ | 1,951 | $ | 1,811 | $ | 1,975 | |||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.18 | $ | 0.19 | $ | 0.1 | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.15 | |||||||||||||||||
Diluted | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.09 | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.15 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Changes and Error Corrections [Abstract] | ||||
Basis of Consolidation | Basis of Consolidation | |||
The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Revenue Recognition | Revenue Recognition | |||
Substantially all of the Company’s revenue is derived from services and solutions provided to the U.S. Federal Government, primarily by Company employees and, to a lesser extent, subcontractors. The Company generates its revenue from three different types of contractual arrangements: time-and-materials contracts; cost-plus fee contracts; and firm fixed-price contracts. | ||||
Revenue for time-and-materials contracts is recognized as services are performed, generally on the basis of contract allowable labor hours worked multiplied by the contract defined billing rates, plus the direct costs and indirect cost burdens associated with materials and other direct expenses used in performance on the contract. Profits on time-and-materials contracts result from the difference between the cost of services performed and the contract-defined billing rates for these services. | ||||
Generally, revenue on cost-plus fee contracts is recognized as services are performed, based on the allowable costs incurred in the period, plus any recognizable earned fee. The Company does not recognize award-fee income until the fees are fixed or determinable. Due to such timing, and to fluctuations in the level of revenue, profit as a percentage of revenue on award-fee contracts will fluctuate period to period. | ||||
Revenue recognition methods on firm fixed-price contracts will vary depending on the nature of the work and the contract terms. Revenue on firm fixed-price service contracts is recognized as services are performed. Generally, revenue is deferred until all the following have occurred: (1) there is a contract in place, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Revenue on firm fixed-price contracts that require delivery of specific items is recognized based on a price per unit as units are delivered. Revenue for firm fixed-price contracts in which the Company is paid a specific amount to provide services for a stated period of time is recognized ratably over the service period. Profits related to contracts accounted for under this method may fluctuate from period to period, particularly in the early phases of the contract. | ||||
Revenue on certain firm fixed-price contracts where the Company is designing, engineering, or manufacturing to the customer’s specifications is recognized on the percentage-of-completion method of accounting, generally using costs incurred in relation to total estimated costs to measure progress toward completion. Profits on firm fixed-price contracts result from the difference between the incurred costs and the revenue earned. Contract accounting requires significant judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Due to the size and nature of many of the Company’s contracts, the estimation of total revenue and cost at completion requires the use of estimates. Contract costs include material, labor, and subcontracting costs, as well as an allocation of allowable indirect costs. Assumptions have to be made regarding the length of time to complete the contract because costs also include expected increases in wages and prices for materials. For contract change orders, claims or similar items, the Company applies judgment in estimating the amounts and assessing the potential for realization. These amounts are only included in contract value when they can be reliably estimated and realization is considered probable. Estimates of total contract revenue and costs are continuously monitored during the term of the contract and are subject to revision as the contract progresses. Anticipated losses on contracts accounted for under the percentage-of-completion method are recognized in the period they are deemed probable and can be reasonably estimated. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
The Company considers cash on deposit and all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. | ||||
Fair Value Measurements | Fair Value Measurements | |||
The Company’s financial assets and liabilities are measured at fair value which is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. Valuation techniques are based on observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. | ||||
These two types of inputs have created the following fair value hierarchy: | ||||
• | Level 1 — Quoted prices for identical instruments in active markets. | |||
• | Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant value drivers are observable. | |||
• | Level 3 — Valuations derived from valuation techniques in which significant value drivers are unobservable. | |||
The carrying values of cash and cash equivalents, contract receivables and accounts payable approximate fair value because of the short-term nature of these instruments. The Company’s nonfinancial assets measured at fair value on a nonrecurring basis include intangible assets and long-lived tangible assets including property and equipment. The valuation methods used to determine fair value require a significant degree of management judgment to determine the key assumptions. As such, the Company classifies nonfinancial assets subject to nonrecurring fair value adjustments at Level 3 measurements. The carrying value of the long-term debt approximates fair value because the interest rate is variable and therefore deemed to reflect a market rate of interest. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |||
Accounts receivable are recorded at face amount, less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts at an amount that it estimates to be sufficient to cover the risk of collecting less than full payment on receivables. On a quarterly basis, the Company reevaluates its receivables, especially receivables that are past due, and reassesses the allowance for doubtful accounts primarily based on specific customer collection issues. | ||||
Property and Equipment | Property and Equipment | |||
Property, equipment, and leasehold improvements are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range from three to seven years for furniture and equipment, over the shorter of the lease term or the useful lives for leasehold improvements, and 30 years for real property. | ||||
Long-Lived Assets (Excluding Intangible Assets) | Long-Lived Assets (Excluding Intangible Assets) | |||
A review of long-lived assets for impairment is performed annually or when events or changes in circumstances indicate the carrying value of such assets may not be recoverable. If an indicator of impairment is present, the Company compares the estimated undiscounted future cash flows to be generated by the asset to its carrying amount. If the undiscounted future cash flows are less than the carrying amount of the asset, the Company records an impairment loss equal to the excess of the asset’s carrying amount over its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Based on the analysis performed, the Company determined that there were no such impairments, nor indicators of impairments, for such assets during 2014, 2013 or 2012. | ||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||
Goodwill represents the excess of cost over fair value of net tangible and identifiable intangible assets of acquired companies. Goodwill is reviewed for impairment annually or when events or changes in circumstances indicate the carrying value exceeds the implied fair value. NCI performs its annual goodwill impairment analysis on October 1 of each year. A two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized. The first step is used to identify any potential impairment by comparing the fair value of the Company with its carrying amount. The second step is used to measure the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of goodwill. If goodwill becomes impaired, the Company would record a charge to earnings in the financial statements during the period in which any impairment of goodwill is determined. | ||||
During 2012, in accordance with the Company’s annual testing and due to its depressed market value, the continued uncertainty in funding levels of various Federal Government agencies and the ongoing delays of expected contract procurement opportunities, the Company performed two goodwill impairment analyses with the assistance of a third party valuation specialist. The results of these analyses indicated that the Company’s goodwill was impaired, and therefore the Company recorded an impairment charges totaling $150.3 million and a tax benefit totaling $58.0 million in 2012. | ||||
Intangible assets consist of acquisition-related contracts and customer relationships and non-compete agreements. Contract and customer relationships are amortized over the expected backlog life based on projected cash flows, which are proportionate to acquired backlog, or generally between three to 11 years. Non-compete agreements are amortized over their contractual life, which is between three to five years. | ||||
Intangible assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the intangible asset many not be fully recoverable. An impairment loss is recognized if the sum of the long-term undiscounted cash flows is less than the carrying amount of the long-lived asset being evaluated. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets and will result in a reduction of earnings in the period incurred. | ||||
There were no goodwill impairment charges in 2014 or 2013. | ||||
Common Stock | Common Stock | |||
Holders of Class A common stock are entitled to one vote for each share held of record, and holders of Class B common stock are entitled to 10 votes for each share held of record, except with respect to any “going private transaction,” as to which each share of Class A common stock and Class B common stock are both entitled to one vote per share. The Class A common stock and the Class B common stock vote together as a single class on all matters submitted to a vote of stockholders, including the election of directors, except as required by law. Holders of the Company’s common stock do not have cumulative voting rights in the election of directors. Each share of Class B common stock is convertible into one share of Class A common stock at any time at the option of the Class B stockholder, and in certain other circumstances. During 2011, the Class B common stock holder transferred ownership of 500,000 shares of Class B common stock to the control of an unrelated party for estate planning purposes. This transfer resulted in the conversion of the Class B common stock to Class A common stock. | ||||
Holders of common stock are entitled to receive, when and if declared by the Board of Directors from time to time, such dividends and other distributions in cash, stock or property from the Company’s assets or funds legally available for such purposes. Each share of Class A common stock and Class B common stock is equal with respect to dividends and other distributions in cash, stock or property, except that in the case of stock dividends, only shares of Class A common stock will be distributed with respect to the Class A common stock and only shares of Class B common stock will be distributed with respect to Class B common stock. | ||||
Segment Information | Segment Information | |||
Management has concluded that the Company operates in one segment based upon the information used by the Chief Operating Decision Maker in evaluating the performance of its business and allocating resources and capital. | ||||
Income Taxes | Income Taxes | |||
We periodically assess our tax filing exposures related to periods that are open to examination. Based on the latest available information, we evaluate tax positions to determine whether the position will more likely than not be sustained upon examination by the applicable tax authorities. The Company recognizes liabilities for uncertain tax positions on open tax years when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured at the Company’s best estimate of the taxes ultimately expected to be paid. If we determine that the tax position is more likely than not to be sustained, we record the largest amount of benefit that is more likely than not to be realized when the tax position is settled. If we cannot reach that determination, no benefit is recorded. We record interest and penalties related to income taxes as Interest Expense and General and Administrative Expenses in the Consolidated Statement of Operations, respectively. | ||||
Revenue from Contracts with Customers | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most of the current revenue recognition guidance under U.S. GAAP when it becomes effective for annual periods beginning after December 15, 2016, and interim periods therein. While this new accounting standard will not affect the Company until the Company’s 2017 fiscal year, it does require either a full retrospective approach reflecting the application of the standard in each prior reporting period, or a retrospective approach with the cumulative effect of initially adopting the ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). | |||
The main principle of ASU 2014-09 is that revenue should be recognized when contracted goods or services are transferred to customers in an amount that reflects the consideration that the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five step process to achieve this new principle which will require entities to apply significantly more management judgment and may require the use of more estimates than are required under existing U.S. GAAP. NCI is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s consolidated financial statements and has not yet determined the method by which NCI will adopt the standard in 2017. | ||||
Presentation of Financial Statements - Going Concern | In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40), which provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about the related footnote disclosures. It becomes effective for annual periods beginning after December 15, 2016, and interim periods thereafter. While this new accounting standard will not affect the Company until the Company’s 2017 fiscal year, early application is permitted. | |||
Currently there is no guidance in U.S. GAAP surrounding management’s responsibility to evaluate whether substantial doubt exists about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this update require management to evaluate an entity’s ability to continue as a going concern by incorporating and building upon principles that already exist in U.S. GAAP. Specifically, the amendments provide a definition of the term substantial doubt, require management to make an evaluation every reporting period including interim periods, provide principles for evaluating the mitigation effect of management’s plans and require certain disclosures when substantial doubt is mitigated as a result of management’s plans. It also requires a short statement and additional disclosures when substantial doubt is not mitigated, and requires as assessment for a period of one year after the date that the financial statements are issued. NCI is currently evaluating the impact of the pending adoption of ASU 2014-15 on the Company’s financial statements and disclosures when NCI adopts the standard in 2017. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The following details the historical computation of basic and diluted earnings per common share (Class A and Class B) for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net income (loss) | $ | 8,468 | $ | 7,738 | $ | (86,824 | ) | ||||||
Weighted average number of basic shares outstanding during the year | 12,899 | 12,829 | 13,335 | ||||||||||
Dilutive effect of stock options after application of treasury stock method | 617 | — | — | ||||||||||
Weighted average number of diluted shares outstanding during the year | 13,516 | 12,829 | 13,335 | ||||||||||
Basic earnings (loss) per share | $ | 0.66 | $ | 0.6 | $ | (6.51 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.63 | $ | 0.6 | $ | (6.51 | ) |
Major_Customers_Tables
Major Customers (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Revenue by Customer | Revenue by customer for each of the three years ended December 31 was as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Defense and Intelligence Agencies | $ | 237,194 | 75 | % | $ | 249,463 | 75 | % | $ | 280,795 | 76 | % | |||||||||||||
Federal Civilian Agencies | $ | 79,834 | 25 | % | $ | 82,862 | 25 | % | $ | 87,592 | 24 | % |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Summary of Accounts Receivable | Accounts receivable consist of billed and unbilled amounts at the end of each year: | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Billed receivables | $ | 25,231 | $ | 31,398 | |||||||||
Unbilled receivables: | |||||||||||||
Amounts billable at end of year | 21,677 | 19,215 | |||||||||||
Other | 6,690 | 14,166 | |||||||||||
Total unbilled receivables | 28,367 | 33,381 | |||||||||||
Total accounts receivable | 53,598 | 64,779 | |||||||||||
Less: allowance for doubtful accounts | 742 | 788 | |||||||||||
Total accounts receivable, net | $ | 52,856 | $ | 63,991 | |||||||||
Allowance for Doubtful Accounts | The following table details the Allowance for Doubtful Accounts for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 788 | $ | 802 | $ | 590 | |||||||
Charged to expense | — | 62 | 647 | ||||||||||
Deductions | (46 | ) | (76 | ) | (435 | ) | |||||||
Balance at end of year | $ | 742 | $ | 788 | $ | 802 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property and Equipment | The following table details property and equipment at the end of each year: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 23,896 | $ | 23,054 | |||||
Leasehold improvements | 9,221 | 8,488 | |||||||
Real property | 549 | 549 | |||||||
33,666 | 32,091 | ||||||||
Less: Accumulated depreciation and amortization | 26,295 | 22,339 | |||||||
Property and equipment, net | $ | 7,371 | $ | 9,752 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Details of Intangible Assets | The following table details intangible assets at the end of each year: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Contract and customer relationships | $ | 20,987 | $ | 20,987 | |||||
Less: Accumulated amortization | 17,268 | 15,647 | |||||||
Intangible assets, net | $ | 3,719 | $ | 5,340 | |||||
Future Amortization Expense | Future amortization expense related to intangible assets is expected to be as follows: | ||||||||
For the year ending December 31, | |||||||||
2015 | $ | 1,178 | |||||||
2016 | 616 | ||||||||
2017 | 603 | ||||||||
2018 | 492 | ||||||||
2019 | 391 | ||||||||
Thereafter | 439 | ||||||||
$ | 3,719 |
Restructuring_Charge_Tables
Restructuring Charge (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Liability Accounts | The activity and balance of the restructuring liability accounts for the years ended December 31, 2014 and 2013 are as follows: | ||||
Lease and | |||||
Facilities Exit | |||||
Costs | |||||
Balance as of January 1, 2013 | $ | 1,573 | |||
Cash payments and adjustments | (645 | ) | |||
Balance as of December 31, 2013 | 928 | ||||
Cash payments and adjustments | (543 | ) | |||
Balance as of December 31, 2014 | $ | 385 | |||
Amounts contained in balance sheet as of December 31, 2014 | |||||
Other accrued expenses | 218 | ||||
Other long-term liabilities | 167 | ||||
Total | $ | 385 | |||
Other_Accrued_Expenses_Tables
Other Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Other Accrued Expenses | Other accrued expenses consist of the following at the end of each year: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued health claims | $ | 1,506 | $ | 1,881 | |||||
Deferred rent, current | 751 | 573 | |||||||
Restructuring charge, current | 218 | 366 | |||||||
Other accrued expenses | 2,178 | 1,758 | |||||||
Total other accrued expenses | $ | 4,653 | $ | 4,578 | |||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Minimum Lease Payments | Minimum lease payments under the Company’s non-cancelable operating leases are as follows: | ||||
Operating | |||||
leases | |||||
(in thousands) | |||||
For the year ending December 31, | |||||
2015 | $ | 5,497 | |||
2016 | 3,942 | ||||
2017 | 3,256 | ||||
2018 | 1,572 | ||||
2019 | 93 | ||||
Thereafter | — | ||||
Total minimum lease payments | $ | 14,360 | |||
Performance_Incentive_Plan_Tab
Performance Incentive Plan (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Postemployment Benefits [Abstract] | |||||
Shares Available for Future Grants | |||||
As of December 31, | |||||
2014 | |||||
(in thousands) | |||||
Shares reserved under the plan | 4,100 | ||||
Shares vested and options exercised | 1,573 | ||||
Restricted shares and options outstanding | 1,711 | ||||
Shares available for future grants | 816 | ||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Computation of Option Grants | The following weighted-average assumptions were used for option grants made during the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected Volatility | 56.3 | % | 56 | % | 53.5 | % | |||||||||||||||||||
Expected Term (in years) | 4.6 | 5 | 4.7 | ||||||||||||||||||||||
Risk-free Interest Rate | 1.7 | % | 1.2 | % | 0.9 | % | |||||||||||||||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Summary of Stock Option and Restricted Stock Activity | The following table summarizes stock option and restricted stock activity for the period January 1, 2012 through December 31, 2014: | ||||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||||||
Options | Average | ||||||||||||||||||||||||
(in thousands) | Exercise Price | ||||||||||||||||||||||||
per Share | |||||||||||||||||||||||||
Outstanding at January 1, 2012 | 1,364 | $ | 18.14 | ||||||||||||||||||||||
Granted | 679 | 6.7 | |||||||||||||||||||||||
Forfeited/cancelled | (1,362 | ) | 18 | ||||||||||||||||||||||
Exercised | (5 | ) | 1.9 | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 676 | $ | 7.07 | ||||||||||||||||||||||
Granted | 1,230 | 4.59 | |||||||||||||||||||||||
Forfeited/cancelled | (121 | ) | 5.96 | ||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,785 | $ | 5.43 | ||||||||||||||||||||||
Granted | 60 | 9.33 | |||||||||||||||||||||||
Forfeited/cancelled | (87 | ) | 7.83 | ||||||||||||||||||||||
Exercised | (91 | ) | 5.04 | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 1,667 | $ | 5.44 | ||||||||||||||||||||||
Vested or expected to vest at December 31, 2014 | 1,417 | $ | 2.72 | ||||||||||||||||||||||
Exercisable at December 31, 2014 | 987 | $ | 5.17 | ||||||||||||||||||||||
Summary Stock Option Vesting and Nonvested Option | The following table summarizes stock option vesting and nonvested options for the period January 1, 2012 through December 31, 2014: | ||||||||||||||||||||||||
Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | ||||||||||||||||||||||
Options | Average | Restricted Shares | Average | ||||||||||||||||||||||
(in thousands) | Fair Value | (in thousands) | Fair Value | ||||||||||||||||||||||
Nonvested January 1, 2012 | 593 | $ | 9.07 | 165 | $ | 18.25 | |||||||||||||||||||
Granted | 679 | 3.01 | 25 | 7.28 | |||||||||||||||||||||
Vested | (164 | ) | 9.36 | (23 | ) | 19.01 | |||||||||||||||||||
Forfeited | (459 | ) | 8.66 | (44 | ) | 15.62 | |||||||||||||||||||
Nonvested December 31, 2012 | 649 | $ | 3.05 | 123 | $ | 16.81 | |||||||||||||||||||
Vested December 31, 2012 | 27 | $ | 4.6 | ||||||||||||||||||||||
Granted | 1,230 | 2.21 | — | — | |||||||||||||||||||||
Vested | (174 | ) | 2.92 | (39 | ) | 16.73 | |||||||||||||||||||
Forfeited | (139 | ) | 2.64 | — | 20.01 | ||||||||||||||||||||
Nonvested December 31, 2013 | 1,566 | $ | 2.45 | 84 | $ | 16.58 | |||||||||||||||||||
Vested December 31, 2013 | 194 | $ | 3.09 | ||||||||||||||||||||||
Granted | 60 | 4.44 | — | — | |||||||||||||||||||||
Vested | (859 | ) | 2.24 | (29 | ) | 17.46 | |||||||||||||||||||
Forfeited | (87 | ) | 7.83 | (11 | ) | 16.61 | |||||||||||||||||||
Nonvested December 31, 2014 | 680 | $ | 2.72 | 44 | $ | 15.97 | |||||||||||||||||||
Vested December 31, 2014 | 987 | $ | 2.4 | ||||||||||||||||||||||
Stock Options Outstanding | The following table summarizes stock options outstanding at December 31, 2014: | ||||||||||||||||||||||||
Range of exercise prices | Number of | Weighted- | Intrinsic Value | Weighted-Average | Options | Intrinsic Value | |||||||||||||||||||
Options | Average | Outstanding | Remaining | exercisable | Vested Options | ||||||||||||||||||||
Exercise Price | Options | Contractual Life | |||||||||||||||||||||||
(in thousands) | (in thousands) | (in years) | (in thousands) | (in thousands) | |||||||||||||||||||||
$1.00 – $6.99 | 1,185 | $ | 4.55 | $ | 6,702 | 5.51 | 775 | $ | 4,385 | ||||||||||||||||
$7.00 – $12.99 | 482 | 7.61 | 1,260 | 4.61 | 212 | 589 | |||||||||||||||||||
1,667 | $ | 5.44 | $ | 7,962 | 5.2 | 987 | $ | 4,974 | |||||||||||||||||
Stock Compensation | The following table summarizes stock compensation for the three years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cost of revenue | $ | 667 | $ | 283 | $ | 637 | |||||||||||||||||||
General and administrative | 2,377 | 1,116 | 1,323 | ||||||||||||||||||||||
Stock option tender offer | — | — | 2,244 | ||||||||||||||||||||||
$ | 3,044 | $ | 1,399 | $ | 4,204 | ||||||||||||||||||||
Summary of Stock Options Exercised | The following table summarizes cash proceeds received, intrinsic value realized, and income tax benefits realized for the three years ending December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cash proceeds received | $ | 482 | $ | — | $ | 10 | |||||||||||||||||||
Intrinsic value realized | 4,754 | 106 | 11 | ||||||||||||||||||||||
Income tax benefits realized | 32 | 45 | 4 |
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Significant Components of the Provision for Income Taxes | Significant components of the provision for income taxes for the three years ended December 31, 2014, 2013, and 2012 are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 3,380 | $ | 1,652 | $ | (2,566 | ) | ||||||
State and Local | 780 | 599 | (100 | ) | |||||||||
Total Current | 4,160 | 2,251 | (2,666 | ) | |||||||||
Deferred | |||||||||||||
Federal | 941 | 2,490 | (43,577 | ) | |||||||||
State and Local | 506 | 847 | (8,289 | ) | |||||||||
Total Deferred | 1,447 | 3,337 | (51,866 | ) | |||||||||
Total Income Tax Provision | $ | 5,607 | $ | 5,588 | $ | (54,532 | ) | ||||||
Differences between the Expense (Benefit) from Income Taxes at the Statutory U.S. Federal Income Tax Rate | The differences between the expense (benefit) from income taxes at the statutory U.S. Federal income tax rate of 34% and those reported in the Statements of Operations are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax at statutory rates | 34 | % | 34 | % | 35 | % | |||||||
State income taxes, net of Federal benefit | 5.6 | 7.2 | 4.1 | ||||||||||
Other | 0.2 | 0.7 | (0.5 | ) | |||||||||
Total income tax expense | 39.8 | % | 41.9 | % | 38.6 | % | |||||||
Components of Deferred Tax Assets and Liabilities | Components of the Company’s deferred tax assets and liabilities are as follows for the years ended December 31: | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Accrued vacation and compensation | $ | 2,400 | $ | 1,871 | |||||||||
Intangible assets excluding goodwill | 3,705 | 3,753 | |||||||||||
Stock compensation | 1,455 | 592 | |||||||||||
Restructuring charge and other accrued liabilities | 1,617 | 1,603 | |||||||||||
Accounts receivable | 60 | 59 | |||||||||||
Allowance for doubtful accounts | 286 | 302 | |||||||||||
Deferred rent | 1,037 | 1,045 | |||||||||||
Goodwill | 32,178 | 35,868 | |||||||||||
Total deferred tax assets | 42,738 | 45,093 | |||||||||||
Less: valuation allowance | (196 | ) | — | ||||||||||
Total net deferred tax assets | 42,542 | 45,093 | |||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (753 | ) | (1,886 | ) | |||||||||
Total deferred tax liabilities | (753 | ) | (1,886 | ) | |||||||||
Net deferred tax asset | $ | 41,789 | $ | 43,207 | |||||||||
Supplemental_Quarterly_Informa1
Supplemental Quarterly Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Supplemental Quarterly Information | Quarterly financial operating results of the Company for the years ended December 31, 2014 and 2013 are presented below. | ||||||||||||||||||||||||||||||||
For the quarter ended | |||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||||||||||
Revenue | $ | 74,440 | $ | 75,660 | $ | 77,845 | $ | 89,084 | $ | 79,895 | $ | 77,918 | $ | 82,971 | $ | 91,541 | |||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||
Cost of revenue | 62,822 | 64,102 | 65,929 | 78,003 | 69,087 | 67,832 | 71,991 | 80,477 | |||||||||||||||||||||||||
General and administrative expenses | 5,883 | 6,205 | 6,364 | 7,399 | 5,583 | 5,819 | 6,129 | 5,861 | |||||||||||||||||||||||||
Depreciation and amortization | 1,390 | 1,401 | 1,450 | 1,449 | 1,475 | 1,679 | 1,527 | 1,618 | |||||||||||||||||||||||||
Acquisition and integration related expenses | 150 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Purchase contingency gain | — | — | — | — | — | (864 | ) | — | — | ||||||||||||||||||||||||
Total operating costs and expenses | 70,245 | 71,708 | 73,743 | 86,851 | 76,145 | 74,466 | 79,647 | 87,956 | |||||||||||||||||||||||||
Operating income | 4,195 | 3,952 | 4,102 | 2,233 | 3,750 | 3,452 | 3,324 | 3,585 | |||||||||||||||||||||||||
Interest expense, net | 104 | 95 | 82 | 126 | 128 | 157 | 248 | 251 | |||||||||||||||||||||||||
Income before income taxes | 4,091 | 3,857 | 4,020 | 2,107 | 3,622 | 3,295 | 3,076 | 3,334 | |||||||||||||||||||||||||
Provision (benefit) for income taxes | 1,651 | 1,495 | 1,594 | 866 | 1,621 | 1,344 | 1,265 | 1,359 | |||||||||||||||||||||||||
Net income | $ | 2,440 | $ | 2,362 | $ | 2,426 | $ | 1,241 | $ | 2,001 | $ | 1,951 | $ | 1,811 | $ | 1,975 | |||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.18 | $ | 0.19 | $ | 0.1 | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.15 | |||||||||||||||||
Diluted | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.09 | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.15 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Original maturities of cash on deposits and liquid investments | 3 months | |||
Goodwill impairment | $0 | $0 | $150,752,000 | |
Tax benefit | $58,000,000 | |||
Number of operating segment | 1 | |||
Minimum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Expected backlog life of intangible assets | 3 years | |||
Maximum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Expected backlog life of intangible assets | 11 years | |||
Furniture and Equipment [Member] | Minimum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Furniture and Equipment [Member] | Maximum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Estimated useful lives | 7 years | |||
Real Property [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Estimated useful lives | 30 years | |||
Class A Common Stock [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Number of votes for each share held of record | 1 | |||
Number of votes for each share | 1 | |||
Class B Common Stock [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Number of votes for each share held of record | 10 | |||
Number of votes for each share | 1 | |||
Ownership transferred to control unrelated party for estate planning purposes | 500,000 | |||
Non-compete Agreements [Member] | Minimum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Expected backlog life of intangible assets | 3 years | |||
Non-compete Agreements [Member] | Maximum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Expected backlog life of intangible assets | 5 years |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Equity Option [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted earnings per share | 44,000 | 1,258,000 | 1,243,000 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $2,440 | $2,362 | $2,426 | $1,241 | $2,001 | $1,951 | $1,811 | $1,975 | $8,468 | $7,738 | ($86,824) |
Weighted average number of basic shares outstanding during the year | 12,899 | 12,829 | 13,335 | ||||||||
Dilutive effect of stock options after application of treasury stock method | 617 | ||||||||||
Weighted average number of diluted shares outstanding during the year | 13,516 | 12,829 | 13,335 | ||||||||
Basic earnings (loss) per share | $0.19 | $0.18 | $0.19 | $0.10 | $0.16 | $0.15 | $0.14 | $0.15 | $0.66 | $0.60 | ($6.51) |
Diluted earnings (loss) per share | $0.18 | $0.18 | $0.18 | $0.09 | $0.16 | $0.15 | $0.14 | $0.15 | $0.63 | $0.60 | ($6.51) |
Major_Customers_Additional_Inf
Major Customers - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cyber Network Operations and Security Support [Member] | |||
Segment Reporting Information [Line Items] | |||
Option contract term | 3 years | ||
Number of option period contracts | 2 | ||
PEO Soldier [Member] | |||
Segment Reporting Information [Line Items] | |||
PEO Soldier and CNOSS contracts accounted for revenue | $36,500 | $46,000 | $62,400 |
Major_Customers_Revenue_by_Cus
Major Customers - Revenue by Customer (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defense and Intelligence Agencies [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue by customer, Percentage | 75.00% | 75.00% | 76.00% |
Defense and Intelligence Agencies [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue by customer, Amount | 237,194 | 249,463 | 280,795 |
Federal Civilian Agencies [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue by customer, Percentage | 25.00% | 25.00% | 24.00% |
Federal Civilian Agencies [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue by customer, Amount | 79,834 | 82,862 | 87,592 |
Accounts_Receivable_Summary_of
Accounts Receivable - Summary of Accounts Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ||||
Billed receivables | $25,231 | $31,398 | ||
Unbilled receivables: | ||||
Amounts billable at end of year | 21,677 | 19,215 | ||
Other | 6,690 | 14,166 | ||
Total unbilled receivables | 28,367 | 33,381 | ||
Total accounts receivable | 53,598 | 64,779 | ||
Less: allowance for doubtful accounts | 742 | 788 | 802 | 590 |
Total accounts receivable, net | $52,856 | $63,991 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Maximum period in which unbilled receivables are expected to be billed | 1 year |
Accounts_Receivable_Summary_of1
Accounts Receivable - Summary of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Balance at beginning of year | $788 | $802 | $590 |
Charged to expense | 62 | 647 | |
Deductions | -46 | -76 | -435 |
Balance at end of year | $742 | $788 | $802 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $33,666 | $32,091 |
Less: Accumulated depreciation and amortization | 26,295 | 22,339 |
Property and equipment, net | 7,371 | 9,752 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,896 | 23,054 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,221 | 8,488 |
Real Property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $549 | $549 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $4.10 | $4.60 | $4.70 |
Intangible_Assets_Details_of_I
Intangible Assets - Details of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $3,719 | $5,340 |
Contract and Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 20,987 | 20,987 |
Less: Accumulated amortization | $17,268 | $15,647 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $1.60 | $1.70 | $2.60 |
Intangible_Assets_Future_Amort
Intangible Assets - Future Amortization Expense (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $1,178 | |
2016 | 616 | |
2017 | 603 | |
2018 | 492 | |
2019 | 391 | |
Thereafter | 439 | |
Intangible assets, net | $3,719 | $5,340 |
Restructuring_Charge_Restructu
Restructuring Charge - Restructuring Liability Accounts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Other accrued expenses | $4,653 | $4,578 |
Other long-term liabilities | 2,901 | 3,399 |
Lease and Facilities Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 928 | 1,573 |
Cash payments and adjustments | -543 | -645 |
Ending Balance | 385 | 928 |
Lease and Facilities Exit Costs [Member] | Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other accrued expenses | 218 | |
Other long-term liabilities | 167 | |
Total | $385 |
Restructuring_Charge_Additiona
Restructuring Charge - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Lease extension term description | The longest of which extends through 2017. |
Other_Accrued_Expenses_Other_A
Other Accrued Expenses - Other Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued health claims | $1,506 | $1,881 |
Deferred rent, current | 751 | 573 |
Restructuring charge, current | 218 | 366 |
Other accrued expenses | 2,178 | 1,758 |
Total other accrued expenses | $4,653 | $4,578 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Line Items] | |||
Amortization of deferred rent expense, under operating leases | $5.40 | $6.70 | $8.10 |
Minimum [Member] | |||
Leases [Line Items] | |||
Escalation clause under operating lease | 2.50% | ||
Maximum [Member] | |||
Leases [Line Items] | |||
Escalation clause under operating lease | 5.00% |
Leases_Minimum_Lease_Payments_
Leases - Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $5,497 |
2016 | 3,942 |
2017 | 3,256 |
2018 | 1,572 |
2019 | 93 |
Thereafter | 0 |
Total minimum lease payments | $14,360 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $80,000,000 | ||
Additional borrowing capacity, accordion feature | 45,000,000 | ||
Maximum borrowing capacity including accordion feature | 125,000,000 | ||
Description of variable rate basis | One-month LIBOR plus an applicable margin, ranging from 210 to 310 basis points | ||
Credit facility, expiration date | 31-Jan-17 | ||
Capacity available to repurchase shares | 17,500,000 | ||
Weighted average outstanding loan balance | 1,300,000 | 12,500,000 | 36,300,000 |
Weighted average borrowing rate | 2.30% | 2.30% | 2.50% |
LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis points | 2.10% | 2.10% | |
Credit facility, outstanding balance | $0 | $1,000,000 | |
Interest rate at period end | 2.30% | 2.30% | |
Minimum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis points | 2.10% | ||
Maximum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis points | 3.10% |
Stock_Repurchase_Additional_In
Stock Repurchase - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of shares | 963,579 | 0 | 0 | 628,782 |
Average price of shares purchased | $6.14 | |||
Repurchase of stock options | $3,876,000 | |||
Repurchase of additional shares | $16,700,000 | |||
Class A Common Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of Class A common stock | 25,000,000 |
Stock_Option_Tender_Offer_Addi
Stock Option Tender Offer - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Repurchase of stock options | $1,300,000 | $1,320,000 | ||
Repurchase of Stock Options, Shares | 963,579 | 0 | 0 | 628,782 |
Expense related to repurchase of options | 2,300,000 | |||
Non cash charge related to repurchase of options | 2,200,000 | |||
Expense related repurchase of options payroll taxes and other expenses | $100,000 |
Performance_Incentive_Plan_Add
Performance Incentive Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Equity Incentive Plans [Line Items] | |
Common stock, shares issued | 4,100,000 |
Class A Common Stock [Member] | |
Equity Incentive Plans [Line Items] | |
Common stock, shares issued | 4,100,000 |
Annual Increase of Shares of Class A common stock | 100,000 |
Performance_Incentive_Plan_Sha
Performance Incentive Plan - Shares Available for Future Grants (Detail) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares reserved under the plan | 4,100 |
Shares vested and options exercised | 1,573 |
Restricted shares and options outstanding | 1,711 |
Shares available for future grants | 816 |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Milestone | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option granted | 737,000 | ||
Stock discrete acceleration milestones | 2 | ||
Period of accelerated in milestones | 30 days | ||
Stock compensation costs | $3,044,000 | $1,399,000 | $4,204,000 |
Stock option contractual term | 7 years | ||
Total unrecognized compensation cost related to unvested stock compensation | 1,200,000 | ||
Amortized unrecognized compensation cost period | 3 years | ||
Milestone One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Price of Discrete Acceleration Milestones | $8 | ||
Milestone Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Price of Discrete Acceleration Milestones | $10 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested period | 3 years | ||
Minimum [Member] | Service and Market Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested period | 1 year 6 months | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested period | 5 years | ||
Maximum [Member] | Service and Market Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested period | 2 years 6 months | ||
2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization of cost of unvested stock compensation arrangements | 900,000 | ||
2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization of cost of unvested stock compensation arrangements | 200,000 | ||
2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization of cost of unvested stock compensation arrangements | 100,000 | ||
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation costs | 2,377,000 | 1,116,000 | 1,323,000 |
General and Administrative [Member] | Accelerated Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation costs | 1,100,000 | ||
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation costs | 667,000 | 283,000 | 637,000 |
Cost of Revenue [Member] | Accelerated Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation costs | $400,000 |
ShareBased_Payments_Computatio
Share-Based Payments - Computation of Option Grants (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected Volatility | 56.30% | 56.00% | 53.50% |
Expected Term (in years) | 4 years 7 months 6 days | 5 years | 4 years 8 months 12 days |
Risk-free Interest Rate | 1.70% | 1.20% | 0.90% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
ShareBased_Payments_Summary_of
Share-Based Payments - Summary of Stock Option and Restricted Stock Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options, Exercised | -1,573,000 | ||
Stock Outstanding, Vested or expected to vest | 737,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options Outstanding, Beginning Balance | 1,785,000 | 676,000 | 1,364,000 |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $5.43 | $7.07 | $18.14 |
Stock Options Granted | 60,000 | 1,230,000 | 679,000 |
Stock Options Forfeited/cancelled | -87,000 | -121,000 | -1,362,000 |
Stock Options, Exercised | -91,000 | -5,000 | |
Stock Options Outstanding, Ending Balance | 1,667,000 | 1,785,000 | 676,000 |
Stock Outstanding, Vested or expected to vest | 1,417,000 | ||
Stock Options Granted, Weighted Average Exercise Price | $9.33 | $4.59 | $6.70 |
Options Exercisable | 987,000 | ||
Stock Options Forfeited/cancelled, Weighted Average Exercise Price | $7.83 | $5.96 | $18 |
Stock Options Exercised, Weighted Average Exercise Price | $5.04 | $1.90 | |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | $5.44 | $5.43 | $7.07 |
Stock Options Vested or expected to vest, Weighted Average Exercise Price | $2.72 | $3.09 | $4.60 |
Stock Options Exercisable, Weighted Average Exercise Price | $5.17 |
ShareBased_Payments_Summary_St
Share-Based Payments - Summary Stock Option Vesting and Nonvested Option (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Outstanding, Beginning Balance | 84 | 123 | 165 |
Restricted Stock Granted | 25 | ||
Restricted Stock Vested | -29 | -32 | -23 |
Restricted Stock Forfeited | -11 | -44 | |
Restricted Stock Outstanding, Ending Balance | 44 | 84 | 123 |
Restricted Stock Outstanding, Weighted Average Fair Value, Beginning Balance | $16.58 | $16.81 | $18.25 |
Restricted Stock, Granted, Weighted Average Fair Value | $7.28 | ||
Restricted Stock Vested, Weighted Average Exercise Price | $17.46 | $16.73 | $19.01 |
Restricted Stock Forfeited, Weighted Average Exercise Price | $16.61 | $20.01 | $15.62 |
Restricted Stock Outstanding, Weighted Average Fair Value, Ending Balance | $13.58 | $16.58 | $16.81 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested Stock Options, Beginning Balance | 1,566 | 649 | 593 |
Stock Options Granted | 60 | 1,230 | 679 |
Stock Options Vested | -859 | -174 | -164 |
Stock Options Forfeited/cancelled | -87 | -139 | -459 |
Nonvested Stock Options, Ending Balance | 680 | 1,566 | 649 |
Vested Stock Options | 987 | 194 | 27 |
Nonvested Stock Options, Weighted Average Exercise Price, Beginning Balance | $2.45 | $3.05 | $9.07 |
Stock Options Granted, Weighted Average Exercise Price | $4.44 | $2.21 | $3.01 |
Stock Options Vested, Weighted Average Exercise Price | $2.24 | $2.92 | $9.36 |
Stock Options Forfeited, Weighted Average Exercise Price | $7.83 | $2.64 | $8.66 |
Nonvested Stock Options, Weighted Average Exercise Price, Ending Balance | $2.72 | $2.45 | $3.05 |
Vested, Weighted Average Exercise Price | $2.72 | $3.09 | $4.60 |
ShareBased_Payments_Stock_Opti
Share-Based Payments - Stock Options Outstanding (Detail) (Stock Options [Member], USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options | 1,667 | 1,785 | 676 | 1,364 |
Weighted- Average Exercise Price | $5.44 | $5.43 | $7.07 | $18.14 |
Intrinsic Value Outstanding Options | $7,962 | |||
Weighted-Average Remaining Contractual Life | 5 years 2 months 12 days | |||
Options Exercisable | 987 | |||
Intrinsic Value Vested Options | 4,974 | |||
Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of exercise prices, Lower limit | $1 | |||
Range of exercise prices, Upper limit | $6.99 | |||
Number of Options | 1,185 | |||
Weighted- Average Exercise Price | $4.55 | |||
Intrinsic Value Outstanding Options | 6,702 | |||
Weighted-Average Remaining Contractual Life | 5 years 6 months 4 days | |||
Options Exercisable | 775 | |||
Intrinsic Value Vested Options | 4,385 | |||
Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of exercise prices, Lower limit | $7 | |||
Range of exercise prices, Upper limit | $12.99 | |||
Number of Options | 482 | |||
Weighted- Average Exercise Price | $7.61 | |||
Intrinsic Value Outstanding Options | 1,260 | |||
Weighted-Average Remaining Contractual Life | 4 years 7 months 10 days | |||
Options Exercisable | 212 | |||
Intrinsic Value Vested Options | $589 |
ShareBased_Payments_Summary_of1
Share-Based Payments - Summary of Stock Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | $3,044 | $1,399 | $4,204 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | 667 | 283 | 637 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | 2,377 | 1,116 | 1,323 |
Stock Option Tender Offer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | $2,244 |
ShareBased_Payments_Summary_of2
Share-Based Payments - Summary of Stock Options Exercised (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash proceeds received | $482 | $10 | |
Intrinsic value realized | 4,754 | 106 | 11 |
Income tax benefits realized | $32 | $45 | $4 |
Provision_for_Income_Taxes_Sig
Provision for Income Taxes - Significant Components of the Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||||||||||
Federal | $3,380 | $1,652 | ($2,566) | ||||||||
State and Local | 780 | 599 | -100 | ||||||||
Total Current | 4,160 | 2,251 | -2,666 | ||||||||
Deferred | |||||||||||
Federal | 941 | 2,490 | -43,577 | ||||||||
State and Local | 506 | 847 | -8,289 | ||||||||
Total Deferred | 1,447 | 3,337 | -51,866 | ||||||||
Total Income Tax Provision | $1,651 | $1,495 | $1,594 | $866 | $1,621 | $1,344 | $1,265 | $1,359 | $5,607 | $5,588 | ($54,532) |
Provision_for_Income_Taxes_Add
Provision for Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rates | 34.00% | 34.00% | 35.00% |
Liability of Income tax | $0 | $0 |
Provision_for_Income_Taxes_Dif
Provision for Income Taxes - Differences between the Expense (Benefit) from Income Taxes at the Statutory U.S. Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rates | 34.00% | 34.00% | 35.00% |
State income taxes, net of Federal benefit | 5.60% | 7.20% | 4.10% |
Other | 0.20% | 0.70% | -0.50% |
Total income tax expense | 39.80% | 41.90% | 38.60% |
Provision_for_Income_Taxes_Com
Provision for Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Accrued vacation and compensation | $2,400 | $1,871 |
Intangible assets excluding goodwill | 3,705 | 3,753 |
Stock compensation | 1,455 | 592 |
Restructuring charge and other accrued liabilities | 1,617 | 1,603 |
Accounts receivable | 60 | 59 |
Allowance for doubtful accounts | 286 | 302 |
Deferred rent | 1,037 | 1,045 |
Goodwill | 32,178 | 35,868 |
Total deferred tax assets | 42,738 | 45,093 |
Less: valuation allowance | -196 | |
Total net deferred tax assets | 42,542 | 45,093 |
Deferred tax liabilities | ||
Property and equipment | -753 | -1,886 |
Total deferred tax liabilities | -753 | -1,886 |
Net deferred tax asset | $41,789 | $43,207 |
Profit_Sharing_Additional_Info
Profit Sharing - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Contributing to the plan | 50.00% | ||
Employee contribution vested | 100.00% | ||
Employee contribution | 6.00% | ||
Employee contribution vested period | 4 years | ||
Company's contributions to both plans | $2.40 | $2.30 | $2.90 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Renegade Technology, Inc. [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Renegade Technology, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchased services from Net Commerce Corporation | $1,100,000 | $700,000 | $900,000 |
Amount due to related party | $0 | $0 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 10, 2015 | Jan. 01, 2015 |
Schedule of Reverse Stock Split [Line Items] | |||
Dividend payable, declared date | 10-Feb-15 | ||
Computech, Inc. [Member] | |||
Schedule of Reverse Stock Split [Line Items] | |||
Business acquisition completion date | 1-Jan-15 | ||
Subsequent Event [Member] | |||
Schedule of Reverse Stock Split [Line Items] | |||
Dividend payable, amount per share | $0.12 | ||
Dividends payable, payable date | 13-Mar-15 | ||
Dividends payable, record date | 25-Feb-15 | ||
Subsequent Event [Member] | Computech, Inc. [Member] | |||
Schedule of Reverse Stock Split [Line Items] | |||
Business acquisition stock purchase percentage | 100.00% | ||
Business acquisition net of cash acquired | $56 | ||
Subsequent Event [Member] | Computech, Inc. [Member] | Senior Credit Facility [Member] | |||
Schedule of Reverse Stock Split [Line Items] | |||
Borrowings under senior credit facility | $34 |
Supplemental_Quarterly_Informa2
Supplemental Quarterly Information (unaudited) - Supplemental Quarterly Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Operations Data: | |||||||||||
Revenue | $74,440 | $75,660 | $77,845 | $89,084 | $79,895 | $77,918 | $82,971 | $91,541 | $317,028 | $332,325 | $368,387 |
Operating costs and expenses: | |||||||||||
Cost of revenue | 62,822 | 64,102 | 65,929 | 78,003 | 69,087 | 67,832 | 71,991 | 80,477 | 270,855 | 289,388 | 322,281 |
General and administrative expenses | 5,883 | 6,205 | 6,364 | 7,399 | 5,583 | 5,819 | 6,129 | 5,861 | 25,850 | 23,393 | 26,148 |
Depreciation and amortization | 1,390 | 1,401 | 1,450 | 1,449 | 1,475 | 1,679 | 1,527 | 1,618 | 5,692 | 6,298 | 6,926 |
Acquisition and integration related expenses | 150 | 150 | |||||||||
Purchase contingency gain | -864 | -864 | |||||||||
Total operating costs and expenses | 70,245 | 71,708 | 73,743 | 86,851 | 76,145 | 74,466 | 79,647 | 87,956 | |||
Operating income (loss) | 4,195 | 3,952 | 4,102 | 2,233 | 3,750 | 3,452 | 3,324 | 3,585 | 14,481 | 14,110 | -140,031 |
Interest expense, net | 104 | 95 | 82 | 126 | 128 | 157 | 248 | 251 | 406 | 784 | 1,325 |
Income (loss) before income taxes | 4,091 | 3,857 | 4,020 | 2,107 | 3,622 | 3,295 | 3,076 | 3,334 | 14,075 | 13,326 | -141,356 |
Provision (benefit) for income taxes | 1,651 | 1,495 | 1,594 | 866 | 1,621 | 1,344 | 1,265 | 1,359 | 5,607 | 5,588 | -54,532 |
Net income (loss) | $2,440 | $2,362 | $2,426 | $1,241 | $2,001 | $1,951 | $1,811 | $1,975 | $8,468 | $7,738 | ($86,824) |
Earnings (loss) per share | |||||||||||
Basic | $0.19 | $0.18 | $0.19 | $0.10 | $0.16 | $0.15 | $0.14 | $0.15 | $0.66 | $0.60 | ($6.51) |
Diluted | $0.18 | $0.18 | $0.18 | $0.09 | $0.16 | $0.15 | $0.14 | $0.15 | $0.63 | $0.60 | ($6.51) |