Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | |
Class A Common Stock [Member] | Class B Common Stock [Member] | ||
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 30-Sep-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Entity Registrant Name | NCI, Inc. | ||
Entity Central Index Key | 1334478 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 8,225,601 | 4,700,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Revenue | $77,918 | $88,467 | $252,430 | $278,729 |
Operating expenses: | ||||
Cost of revenue | 67,832 | 77,147 | 220,300 | 244,855 |
General and administrative expenses | 5,819 | 6,251 | 17,809 | 19,377 |
Depreciation and amortization | 1,679 | 1,681 | 4,824 | 5,145 |
Stock option tender offer | 2,311 | 2,311 | ||
Goodwill impairment | 92,793 | 92,793 | ||
Purchase contingency gain | -864 | -864 | ||
Total operating expenses | 74,466 | 180,184 | 242,069 | 364,481 |
Operating income (loss) | 3,452 | -91,717 | 10,361 | -85,752 |
Interest expense, net | 157 | 266 | 656 | 1,077 |
Income (loss) before income taxes | 3,295 | -91,983 | 9,705 | -86,829 |
Provision (benefit) for income taxes | 1,344 | -36,788 | 3,967 | -34,698 |
Net income (loss) | $1,951 | ($55,195) | $5,738 | ($52,131) |
Basic: | ||||
Weighted average shares outstanding | 12,837 | 13,249 | 12,825 | 13,463 |
Net income (loss) per share | $0.15 | ($4.17) | $0.45 | ($3.87) |
Diluted: | ||||
Weighted average shares outstanding | 12,837 | 13,249 | 12,832 | 13,463 |
Net income (loss) per share | $0.15 | ($4.17) | $0.45 | ($3.87) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $42 | $763 |
Accounts receivable, net | 55,889 | 62,293 |
Deferred tax assets, net | 2,970 | 3,269 |
Income tax receivable | 453 | 5,543 |
Prepaid expenses and other current assets | 3,269 | 5,215 |
Total current assets | 62,623 | 77,083 |
Property and equipment, net | 9,795 | 12,564 |
Other assets | 1,192 | 1,593 |
Deferred tax assets, net | 43,463 | 43,463 |
Intangible assets, net | 5,752 | 7,073 |
Total assets | 122,825 | 141,776 |
Current liabilities: | ||
Accounts payable | 14,418 | 24,148 |
Accrued salaries and benefits | 16,884 | 15,858 |
Deferred revenue | 2,324 | 1,032 |
Other accrued expenses | 5,716 | 7,625 |
Total current liabilities | 39,342 | 48,663 |
Long-term debt | 1,500 | 17,500 |
Other long-term liabilities | 2,321 | 2,723 |
Total liabilities | 43,163 | 68,886 |
Stockholders' equity: | ||
Additional paid-in capital | 70,761 | 69,726 |
Treasury stock at cost- 917 shares of Class A common stock as of September 30, 2013 and December 31, 2012 | -8,331 | -8,331 |
Retained earnings | 16,969 | 11,232 |
Total stockholders' equity | 79,662 | 72,890 |
Total liabilities and stockholders' equity | 122,825 | 141,776 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 174 | 174 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $89 | $89 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Treasury stock at cost, shares | 917 | 917 |
Class A Common Stock [Member] | ||
Common stock, par value | 0.019 | 0.019 |
Common stock, shares authorized | 37,500 | 37,500 |
Common stock, shares issued | 9,149 | 9,149 |
Common stock, shares outstanding | 8,226 | 8,232 |
Class B Common Stock [Member] | ||
Common stock, par value | 0.019 | 0.019 |
Common stock, shares authorized | 12,500 | 12,500 |
Common stock, shares issued | 4,700 | 4,700 |
Common stock, shares outstanding | 4,700 | 4,700 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net Income (loss) | $5,738 | ($52,131) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Goodwill impairment | 92,793 | |
Stock-based compensation expense related to stock option tender offer | 2,242 | |
Depreciation and amortization | 4,824 | 5,145 |
Share-based payments | 1,067 | 1,703 |
Deferred income taxes | 299 | -29,820 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 6,404 | 43,444 |
Prepaid expenses and other assets | 7,436 | -4,490 |
Accounts payable | -9,730 | -17,034 |
Accrued expenses | 8 | 654 |
Net cash provided by operating activities | 16,046 | 42,510 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -734 | -1,343 |
Net cash used in investing activities | -734 | -1,343 |
Cash flows from financing activities: | ||
Repurchase of stock awards | -33 | -1,320 |
APIC from cancellation of stock options | -3,236 | |
Borrowings under credit facility | 62,300 | 103,138 |
Repayments of credit facility | -78,300 | -136,138 |
Proceeds from exercise of stock options | 10 | |
Purchases of Class A common stock | 0 | -3,355 |
Net cash used in financing activities | -16,033 | -40,901 |
Net change in cash and cash equivalents | -721 | 266 |
Cash and cash equivalents, beginning of period | 763 | 2,818 |
Cash and cash equivalents, end of period | 42 | 3,084 |
Supplemental disclosure of cash flow information: | ||
Interest | 512 | 1,048 |
Income taxes | $251 | $2,927 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation |
The accompanying unaudited consolidated financial statements of NCI, Inc. and its subsidiaries (“NCI” or “the Company”) have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments necessary to fairly present the Company’s financial position as of September 30, 2013 and its results of operations and cash flows for the three and nine months ended September 30, 2013 and 2012, which consists of normal and recurring adjustments. The information disclosed in the notes to the financial statements for these periods is unaudited. The current period’s results of operations are not necessarily indicative of results that may be achieved for any future period. For further information, refer to the financial statements and footnotes included in NCI’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC. All numbers presented in tables are in thousands. |
Business_Overview
Business Overview | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Business Overview | 2. Business Overview |
NCI provides IT and professional services and solutions by leveraging its eight core service offerings: cloud computing and data center consolidation; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; software and systems development/integration; and modeling, simulation, and training. The Company provides these services to U.S. Defense, Intelligence, and Federal Civilian agencies. The majority of the Company’s revenue was derived from contracts with the U.S. Federal Government, directly as a prime contractor or as a subcontractor. For the quarter ended September 30, 2013, the Company generated approximately 74% of revenue from the Department of Defense, including agencies within the intelligence community, and approximately 26% of revenue from federal civilian agencies. For the nine months ended September 30, 2013, the Company generated 75% of revenue from Department of Defense, including agencies within the intelligence community, and approximately 25% of revenue from federal civilian agencies. For the quarter ended September 30, 2012, the Company generated approximately 75% of revenue from the Department of Defense, including agencies within the intelligence community, and approximately 25% of revenue from federal civilian agencies. For the nine months ended September 30, 2012, the Company generated 76% of revenue from Department of Defense, including agencies within the intelligence community, and approximately 24% of revenue from federal civilian agencies. The Company’s PEO Soldier contract is the Company’s largest revenue-generating contract and accounted for approximately 14% and 16% of our revenues for the quarters ended September 30, 2013 and 2012, respectively. The Company’s PEO Soldier contract is a cost-plus contract with a term of three years commencing in September 2012. The Company primarily conducts business throughout the United States. We report operating results and financial data as one reportable segment. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | 3. 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. Shares that are anti-dilutive are not included in the computation of diluted earnings per share. For the three months ended September 30, 2013 and 2012, approximately 1.8 million and 1.4 million shares, respectively, were not included in the computation of diluted earnings per share, because to do so would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, approximately 1.2 million and 1.4 million 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 computation of basic and diluted earnings per common share (Class A and Class B) for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net Income (loss) | $ | 1,951 | $ | (55,195 | ) | $ | 5,738 | $ | (52,131 | ) | |||||||
Weighted average number of basic shares outstanding | 12,837 | 13,249 | 12,825 | 13,463 | |||||||||||||
Dilutive effect of stock options after application of treasury stock method | — | — | 7 | — | |||||||||||||
Weighted average number of diluted shares outstanding | 12,837 | 13,249 | 12,832 | 13,463 | |||||||||||||
Basic earnings (loss) per share | $ | 0.15 | $ | (4.17 | ) | $ | 0.45 | $ | (3.87 | ) | |||||||
Diluted earnings (loss) per share | $ | 0.15 | $ | (4.17 | ) | $ | 0.45 | $ | (3.87 | ) | |||||||
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable | 4. Accounts Receivable | ||||||||
Accounts receivable consist of billed and unbilled amounts at the end of each period: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Billed receivables | $ | 26,972 | $ | 13,637 | |||||
Unbilled receivables: | |||||||||
Amounts billable at end of period | 22,698 | 35,938 | |||||||
Other | 7,084 | 13,520 | |||||||
Total unbilled receivables | 29,872 | 49,458 | |||||||
Total accounts receivable | 56,754 | 63,095 | |||||||
Less: allowance for doubtful accounts | 865 | 802 | |||||||
Total accounts receivable, net | $ | 55,889 | $ | 62,293 | |||||
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 twelve months. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property and Equipment | 5. Property and Equipment | ||||||||
The following table details property and equipment at the end of each period: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 22,776 | $ | 22,092 | |||||
Leasehold improvements | 7,748 | 7,697 | |||||||
Real property | 549 | 549 | |||||||
31,073 | 30,338 | ||||||||
Less: Accumulated depreciation and amortization | 21,278 | 17,774 | |||||||
Property and equipment, net | $ | 9,795 | $ | 12,564 | |||||
Depreciation expense for the three months ended September 30, 2013 and 2012 was $1.3 million and $1.2 million, respectively. Depreciation expense for the nine months ended September 30, 2013 and 2012 was $3.5 million and $3.4 million, respectively. |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets | 6. Intangible Assets | ||||||||
The following table details intangible assets at the end of each period: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Contract and customer relationships | $ | 20,558 | $ | 20,558 | |||||
Less: Accumulated amortization | 14,806 | 13,510 | |||||||
5,752 | 7,048 | ||||||||
Non-compete agreements | 2,038 | 2,038 | |||||||
Less: Accumulated amortization | 2,038 | 2,013 | |||||||
— | 25 | ||||||||
Intangible assets, net | $ | 5,752 | $ | 7,073 | |||||
Amortization expense of intangible assets for the three months ended September 30, 2013 and 2012 was $0.4 million and $0.5 million, respectively. Amortization expense of intangible assets for the nine months ended September 30, 2013 and 2012 was $1.3 million and $1.7 million, respectively. |
Stock_Option_Tender_Offer
Stock Option Tender Offer | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | |
Stock Option Tender Offer | 7. 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 offer expired on September 19, 2012. Altogether 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 consisted of 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. |
ShareBased_Payments
Share-Based Payments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Share-Based Payments | 8. Share-Based Payments | ||||||||||||||||
During the three and nine months ended September 30, 2013, the Company granted zero stock options and 1,180,000 stock options respectively, and had zero options exercised. As of September 30, 2013, there were approximately 1.8 million options outstanding. | |||||||||||||||||
During the three months ended September 30, 2013, 12,500 shares of restricted stock vested, with 2,014 shares cancelled to cover individual tax liabilities. During the nine months ended September 30, 2013, 32,500 shares of restricted stock vested, with 7,014 shares cancelled to cover individual tax liabilities. As of September 30, 2013, there were 83,750 shares of restricted stock outstanding. | |||||||||||||||||
The following table summarizes stock compensation for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 94 | $ | 190 | $ | 212 | $ | 577 | |||||||||
General and administrative | 315 | 344 | 855 | 1,126 | |||||||||||||
$ | 409 | $ | 534 | $ | 1,067 | $ | 1,703 | ||||||||||
As of September 30, 2013, there was approximately $4.0 million of total unrecognized compensation cost related to unvested stock compensation arrangements. This cost is expected to be fully amortized over the next five years, with approximately $0.3 million, $1.5 million, $1.1 million, $0.5 million, $0.4 million, and $0.2 million amortized during the remainder of 2013, 2014, 2015, 2016, 2017 and 2018, respectively. The cost of stock compensation is included in the Company’s Consolidated Statements of Income and expensed over the service period of the options. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt |
The Company’s senior credit facility, as amended in December 2010 and subsequently amended in December 2012, 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 225 to 325 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. The credit facility expires on December 13, 2014. | |
The credit facility contains various restrictive covenants that, among other things, restrict the Company’s ability to: incur or guarantee additional debt; make certain distributions, investments and other restricted payments, including limits on cash dividends on the Company’s outstanding common stock; 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 the Company 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. As of September 30, 2013 and December 31, 2012, the Company was in compliance with all of its loan covenants. | |
The credit facility allows the Company to use borrowings thereunder of up to $17.5 million to repurchase shares of Class A common stock. No stock repurchases took place in the nine months ended September 30, 2013. At September 30, 2013, $16.7 million was remaining under the Board of Directors’ authorization for shares repurchases. | |
During the third quarter of 2013, NCI had a weighted average outstanding loan balance of $7.2 million which accrued interest at a weighted average borrowing rate of 2.5%. During the third quarter of 2012, NCI had a weighted average outstanding loan balance of $24.5 million which accrued interest at a weighted average borrowing rate of 2.5%. | |
As of September 30, 2013, the outstanding balance under the credit facility was $1.5 million and interest accrued at a rate of LIBOR plus 225 basis points, or 2.5%. As of December 31, 2012, the outstanding balance under the credit facility was $17.5 million and interest accrued at a rate of LIBOR plus 250 basis points, or 2.7%. |
Restructuring_Charge
Restructuring Charge | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||
Restructuring Charge | 10. Restructuring Charge | ||||||||||||
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 year ended December 31, 2012, and for the nine months ended September 30, 2013 are as follows: | |||||||||||||
Severance | Lease and | Total | |||||||||||
and Related | Facilities Exit | ||||||||||||
Costs | Costs | ||||||||||||
Balance as of January 1, 2012 | $ | 364 | $ | 2,577 | $ | 2,941 | |||||||
Adjustments | — | (4 | ) | (4 | ) | ||||||||
Cash payments | (364 | ) | (1,000 | ) | (1,364 | ) | |||||||
Balance as of December 31, 2012 | — | 1,573 | 1,573 | ||||||||||
Adjustments | — | — | — | ||||||||||
Cash payments | — | (492 | ) | (492 | ) | ||||||||
Balance as of September 30, 2013 | $ | — | $ | 1,081 | $ | 1,081 | |||||||
Amounts contained in balance sheet as of September 30, 2013 | |||||||||||||
Other accrued expenses | — | 408 | 408 | ||||||||||
Other long-term liabilities | — | 673 | 673 | ||||||||||
Total | $ | — | $ | 1,081 | $ | 1,081 | |||||||
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. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. Goodwill |
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 the third quarter of 2012, due to a continued decline in the market price of the Company’s stock, the market capitalization of the Company remained below the carrying value. In addition, federal budget issues, delayed award activity and the resulting expectations for the Company’s future performance all factored into the determination that a potential triggering event had occurred during the third quarter ended September 30, 2012. As a result, the Company performed an interim goodwill impairment analysis. Management, with the assistance of a third party valuation specialist, completed the analysis for the first step and determined that the Company’s implied fair value was below its carrying value as of September 30, 2012. As a result, the Company commenced the second step to determine the implied fair value of goodwill. The estimated fair value of the Company was calculated using a combination of discounted cash flow projections, market values for comparable businesses, and terms, prices and conditions found in sales of comparable businesses. | |
Based on the analysis, management has concluded that a loss as of September 30, 2012 was probable and could be reasonably estimated. Accordingly, the Company recorded an impairment charge of $92.8 million during the three months ended September 30, 2012. A tax benefit totaling $37.1 million was recorded related to the goodwill impairment charge for the period ending September 30, 2012. | |
During the fourth quarter of 2012, in accordance with the Company’s annual testing and due to its further 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 a goodwill impairment analysis with the assistance of a third party valuation specialist. The results of this analysis indicated that the remaining balance of the Company’s goodwill was impaired, and therefore the Company recorded an impairment charge totaling $57.5 million and a tax benefit totaling $22.2 million in the period ending December 31, 2012. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions |
The Company purchased services under a subcontract from Net Commerce Corporation, which is a Government contractor wholly-owned by Mr. Rajiv Narang, the son of Mr. Charles K. Narang, the Chairman and Chief Executive Officer of the Company. For the three months ended September 30, 2013 and 2012, the expense incurred under this agreement was approximately $219,900 and $231,000, respectively. For the nine months ended September 30, 2013 and 2012, the expense incurred under this agreement was approximately $628,500 and $642,000, respectively. As of September 30, 2013 and December 31, 2012, approximate outstanding amounts due to Net Commerce Corporation were $149,700 and $72,000, respectively. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The following details the computation of basic and diluted earnings per common share (Class A and Class B) for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net Income (loss) | $ | 1,951 | $ | (55,195 | ) | $ | 5,738 | $ | (52,131 | ) | |||||||
Weighted average number of basic shares outstanding | 12,837 | 13,249 | 12,825 | 13,463 | |||||||||||||
Dilutive effect of stock options after application of treasury stock method | — | — | 7 | — | |||||||||||||
Weighted average number of diluted shares outstanding | 12,837 | 13,249 | 12,832 | 13,463 | |||||||||||||
Basic earnings (loss) per share | $ | 0.15 | $ | (4.17 | ) | $ | 0.45 | $ | (3.87 | ) | |||||||
Diluted earnings (loss) per share | $ | 0.15 | $ | (4.17 | ) | $ | 0.45 | $ | (3.87 | ) | |||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | |||||||||
Summary of Accounts Receivable | Accounts receivable consist of billed and unbilled amounts at the end of each period: | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Billed receivables | $ | 26,972 | $ | 13,637 | |||||
Unbilled receivables: | |||||||||
Amounts billable at end of period | 22,698 | 35,938 | |||||||
Other | 7,084 | 13,520 | |||||||
Total unbilled receivables | 29,872 | 49,458 | |||||||
Total accounts receivable | 56,754 | 63,095 | |||||||
Less: allowance for doubtful accounts | 865 | 802 | |||||||
Total accounts receivable, net | $ | 55,889 | $ | 62,293 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Summary of Property and Equipment | The following table details property and equipment at the end of each period: | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 22,776 | $ | 22,092 | |||||
Leasehold improvements | 7,748 | 7,697 | |||||||
Real property | 549 | 549 | |||||||
31,073 | 30,338 | ||||||||
Less: Accumulated depreciation and amortization | 21,278 | 17,774 | |||||||
Property and equipment, net | $ | 9,795 | $ | 12,564 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Details of Intangible Assets | The following table details intangible assets at the end of each period: | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Contract and customer relationships | $ | 20,558 | $ | 20,558 | |||||
Less: Accumulated amortization | 14,806 | 13,510 | |||||||
5,752 | 7,048 | ||||||||
Non-compete agreements | 2,038 | 2,038 | |||||||
Less: Accumulated amortization | 2,038 | 2,013 | |||||||
— | 25 | ||||||||
Intangible assets, net | $ | 5,752 | $ | 7,073 | |||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Summary of Stock Compensation | The following table summarizes stock compensation for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 94 | $ | 190 | $ | 212 | $ | 577 | |||||||||
General and administrative | 315 | 344 | 855 | 1,126 | |||||||||||||
$ | 409 | $ | 534 | $ | 1,067 | $ | 1,703 | ||||||||||
Restructuring_Charge_Tables
Restructuring Charge (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||
Restructuring Liability Accounts | The activity and balance of the restructuring liability accounts for the year ended December 31, 2012, and for the nine months ended September 30, 2013 are as follows: | ||||||||||||
Severance | Lease and | Total | |||||||||||
and Related | Facilities Exit | ||||||||||||
Costs | Costs | ||||||||||||
Balance as of January 1, 2012 | $ | 364 | $ | 2,577 | $ | 2,941 | |||||||
Adjustments | — | (4 | ) | (4 | ) | ||||||||
Cash payments | (364 | ) | (1,000 | ) | (1,364 | ) | |||||||
Balance as of December 31, 2012 | — | 1,573 | 1,573 | ||||||||||
Adjustments | — | — | — | ||||||||||
Cash payments | — | (492 | ) | (492 | ) | ||||||||
Balance as of September 30, 2013 | $ | — | $ | 1,081 | $ | 1,081 | |||||||
Amounts contained in balance sheet as of September 30, 2013 | |||||||||||||
Other accrued expenses | — | 408 | 408 | ||||||||||
Other long-term liabilities | — | 673 | 673 | ||||||||||
Total | $ | — | $ | 1,081 | $ | 1,081 | |||||||
Business_Overview_Additional_I
Business Overview - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment | |||||
Services | |||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Number of reportable segment | 1 | ||||
Percentage of Revenue from Department of Defense | 74.00% | 75.00% | 75.00% | 76.00% | |
Percentage of Revenue from Federal Civilian Agencies | 26.00% | 25.00% | 25.00% | 24.00% | |
Percentage of Revenue from PEO Soldiers Contract | 14.00% | 16.00% | |||
Number of Core Service Offerings | 8 | ||||
PEO Soldier contract term | 3 years |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Employee Stock Option [Member]) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Stock Option [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted earnings per share | 1.8 | 1.4 | 1.2 | 1.4 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||||
Net Income (loss) | $1,951 | ($55,195) | $5,738 | ($52,131) |
Weighted average number of basic shares outstanding | 12,837 | 13,249 | 12,825 | 13,463 |
Dilutive effect of stock options after application of treasury stock method | 7 | |||
Weighted average number of diluted shares outstanding | 12,837 | 13,249 | 12,832 | 13,463 |
Basic earnings (loss) per share | $0.15 | ($4.17) | $0.45 | ($3.87) |
Diluted earnings (loss) per share | $0.15 | ($4.17) | $0.45 | ($3.87) |
Accounts_Receivable_Summary_of
Accounts Receivable - Summary of Accounts Receivable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Billed receivables | $26,972 | $13,637 |
Unbilled receivables: | ||
Amounts billable at end of period | 22,698 | 35,938 |
Other | 7,084 | 13,520 |
Total unbilled receivables | 29,872 | 49,458 |
Total accounts receivable | 56,754 | 63,095 |
Less: allowance for doubtful accounts | 865 | 802 |
Total accounts receivable, net | $55,889 | $62,293 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | |
Maximum period in which unbilled receivables are expected to be billed | 12 months |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $31,073 | $30,338 |
Less: Accumulated depreciation and amortization | 21,278 | 17,774 |
Property and equipment, net | 9,795 | 12,564 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 22,776 | 22,092 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,748 | 7,697 |
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 $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $1.30 | $1.20 | $3.50 | $3.40 |
Intangible_Assets_Details_of_I
Intangible Assets - Details of Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $5,752 | $7,073 |
Contract and Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 20,558 | 20,558 |
Less: Accumulated amortization | 14,806 | 13,510 |
Intangible assets, net | 5,752 | 7,048 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,038 | 2,038 |
Less: Accumulated amortization | 2,038 | 2,013 |
Intangible assets, net | $25 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $0.40 | $0.50 | $1.30 | $1.70 |
Stock_Option_Tender_Offer_Addi
Stock Option Tender Offer - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Repurchase of stock options | $1.30 |
Repurchase of Stock Options, Shares | 963,579 |
Expense related to repurchase of options | 2.3 |
Non cash charge related to repurchase of options | 2.2 |
Expense related repurchase of options payroll taxes and other expenses | $0.10 |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Stock options granted | 0 | 1,180,000 |
Stock options exercised | 0 | 0 |
Stock options outstanding | 1,800,000 | 1,800,000 |
Restricted stock outstanding | 83,750 | 83,750 |
Number of shares cancelled in stock | 2,014 | 7,014 |
Total unrecognized compensation cost related to unvested stock compensation | $4 | $4 |
Expected amortized cost, 2013 | 0.3 | 0.3 |
Expected amortized cost, 2014 | 1.5 | 1.5 |
Expected amortized cost, 2015 | 1.1 | 1.1 |
Expected amortized cost, 2016 | 0.5 | 0.5 |
Expected amortized cost, 2017 | 0.4 | 0.4 |
Expected amortized cost, 2018 | $0.20 | $0.20 |
Restricted Stock Units Granted in Two Thousand and Twelve [Member] | ||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||
Restricted Stock vested | 12,500 | 32,500 |
ShareBased_Payments_Summary_of
Share-Based Payments - Summary of Stock Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation | $409 | $534 | $1,067 | $1,703 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation | 94 | 190 | 212 | 577 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation | $315 | $344 | $855 | $1,126 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Credit Facilities [Line Items] | |||||
Maximum borrowing capacity | $80,000,000 | $80,000,000 | |||
Additional borrowing capacity, accordion feature | 45,000,000 | 45,000,000 | |||
Maximum borrowing capacity including accordion feature | 125,000,000 | 125,000,000 | |||
Basis points | 2.25% | 2.50% | |||
Credit facility, expiration date | 13-Dec-14 | ||||
Description of variable rate basis | one-month LIBOR plus an applicable margin, ranging from 225 to 325 basis points | ||||
Capacity available to repurchase shares | 17,500,000 | 17,500,000 | |||
Repurchase of common stock | 0 | 3,355,000 | |||
Remaining authorized repurchase amount | 16,700,000 | ||||
Weighted average outstanding loan balance | 7,200,000 | 24,500,000 | |||
Weighted average borrowing rate | 2.50% | 2.50% | 2.50% | 2.50% | |
Credit facility, outstanding balance | $1,500,000 | $1,500,000 | $17,500,000 | ||
Description of variable rate basis | LIBOR | LIBOR | |||
Interest rate at period end | 2.50% | 2.50% | 2.70% | ||
Minimum [Member] | |||||
Credit Facilities [Line Items] | |||||
Basis points | 2.25% | ||||
Maximum [Member] | |||||
Credit Facilities [Line Items] | |||||
Basis points | 3.25% |
Restructuring_Charge_Restructu
Restructuring Charge - Restructuring Liability Accounts (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $1,573 | $2,941 |
Adjustments | -4 | |
Cash payments | -492 | -1,364 |
Ending Balance | 1,081 | 1,573 |
Other accrued expenses | 5,716 | 7,625 |
Other long-term liabilities | 2,321 | 2,723 |
Severance and Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 364 | |
Adjustments | ||
Cash payments | -364 | |
Lease and Facilities Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 1,573 | 2,577 |
Adjustments | -4 | |
Cash payments | -492 | -1,000 |
Ending Balance | 1,081 | 1,573 |
Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other accrued expenses | 408 | |
Other long-term liabilities | 673 | |
Total | 1,081 | |
Restructuring [Member] | Lease and Facilities Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other accrued expenses | 408 | |
Other long-term liabilities | 673 | |
Total | $1,081 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $92,793,000 | $92,793,000 | $57,500,000 | |
Tax benefit | $37,100,000 | $22,200,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | |||
Related Party Transaction [Line Items] | ||||||
Expense under subcontract from net commerce corporation | $219,900 | $231,000 | $628,500 | $642,000 | ||
Outstanding amounts due to Net Commerce Corporation | $149,700 | $72,000 |