Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NCIT | |
Entity Registrant Name | NCI, Inc. | |
Entity Central Index Key | 1334478 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,323,356 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,700,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $80,968 | $89,084 |
Operating expenses: | ||
Cost of revenue | 67,602 | 78,003 |
General and administrative expenses | 6,629 | 7,399 |
Depreciation and amortization | 2,089 | 1,449 |
Acquisition and integration related expenses | 230 | |
Total operating expenses | 76,550 | 86,851 |
Operating income | 4,418 | 2,233 |
Interest expense, net | 238 | 126 |
Income before income taxes | 4,180 | 2,107 |
Provision for income taxes | 1,775 | 866 |
Net income | $2,405 | $1,241 |
Basic: | ||
Weighted average shares outstanding | 12,968 | 12,846 |
Net income per share | $0.19 | $0.10 |
Diluted: | ||
Weighted average shares outstanding | 13,601 | 13,367 |
Net income per share | $0.18 | $0.09 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $706 | $25,819 |
Accounts receivable, net | 53,000 | 52,856 |
Deferred tax assets, net | 3,942 | 3,950 |
Prepaid expenses and other current assets | 5,772 | 3,382 |
Total current assets | 63,420 | 86,007 |
Property and equipment, net | 6,780 | 7,371 |
Other assets | 1,753 | 1,748 |
Deferred tax assets, net | 37,774 | 37,839 |
Intangible assets, net | 22,299 | 3,719 |
Goodwill | 33,706 | |
Total assets | 165,732 | 136,684 |
Current liabilities: | ||
Accounts payable | 15,519 | 15,646 |
Accrued salaries and benefits | 15,769 | 16,481 |
Deferred revenue | 3,884 | 3,226 |
Other accrued expenses | 5,541 | 4,653 |
Total current liabilities | 40,713 | 40,006 |
Long-term debt | 27,000 | |
Other long-term liabilities | 2,899 | 2,901 |
Total liabilities | 70,612 | 42,907 |
Stockholders' equity: | ||
Additional paid-in capital | 74,903 | 74,406 |
Treasury stock at cost-917 shares of Class A common stock as of March 31, 2015 and December 31, 2014 | -8,331 | -8,331 |
Retained earnings | 28,283 | 27,438 |
Total stockholders' equity | 95,120 | 93,777 |
Total liabilities and stockholders' equity | 165,732 | 136,684 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 176 | 175 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $89 | $89 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 9,240,000 | 9,223,000 |
Common stock, shares outstanding | 8,323,000 | 8,306,000 |
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 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $2,405 | $1,241 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,089 | 1,449 |
Share-based compensation | 370 | 1,943 |
Deferred income taxes | 73 | 43 |
Changes in operating assets and liabilities: (net of businesses acquired) | ||
Accounts receivable, net | 5,242 | -3,138 |
Prepaid expenses and other assets | 691 | -1,805 |
Accounts payable | -1,035 | 3,494 |
Accrued expenses and other liabilities | -3,606 | -2,129 |
Net cash provided by operating activities | 6,229 | 1,098 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -251 | -93 |
Cash paid for acquisition, net of cash acquired | -56,657 | |
Net cash used in investing activities | -56,908 | -93 |
Cash flows from financing activities: | ||
Borrowings under credit facility | 72,340 | 29,559 |
Repayments on credit facility | -45,340 | -30,559 |
Proceeds from exercise of stock options | 127 | 136 |
Dividends paid | -1,561 | |
Net cash provided by (used in) financing activities | 25,566 | -864 |
Net change in cash and cash equivalents | -25,113 | 141 |
Cash and cash equivalents, beginning of period | 25,819 | 50 |
Cash and cash equivalents, end of period | 706 | 191 |
Cash paid during the period for: | ||
Interest | 211 | 106 |
Income taxes | 541 | 843 |
Non-cash investing and finance activities during the period for: | ||
Leasehold improvements acquired under tenant improvement funds | $706 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation |
The accompanying unaudited condensed 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 consolidated financial statements reflect all adjustments necessary to fairly present the Company’s financial position as of March 31, 2015 and its results of operations and cash flows for the three months ended March 31, 2015 and 2014, 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. All numbers in tables are presented in thousands except share and per share numbers. 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, 2014, as filed with the SEC. |
Business_Overview
Business Overview | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | 2. Business Overview |
NCI is a worldwide provider of leading-edge enterprise services and solutions to Defense, Intelligence, Healthcare, and Civilian Government agencies. NCI focuses on helping customers achieve higher levels of performance by utilizing cutting-edge technologies and methodologies in the following capability areas: Cloud Computing and IT Infrastructure Optimization, 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, Training and Simulation. 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. NCI primarily conducts business throughout the United States. The Company reports operating results and financial data as one reportable segment. | |
For the three months ended March 31, 2015, the Company generated approximately 60% of revenue from the Department of Defense, including agencies within the intelligence community, and approximately 40% of revenue from federal civilian agencies. For the three months ended March 31, 2014, the Company generated approximately 78% of revenue from the Department of Defense, including agencies within the intelligence community, and approximately 22% of revenue from federal civilian agencies. | |
NCI’s PEO Soldier contract is the Company’s largest revenue-generating contract and accounted for approximately 10% and 11% of revenue for the three months ended March 31, 2015 and 2014, 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. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, 2015 and 2014, approximately 109,000 and 21,000 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 computation of basic and diluted earnings per common share (Class A and Class B) for the three months ended March 31, 2015 and 2014. | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income | $ | 2,405 | $ | 1,241 | |||||
Weighted average number of basic shares outstanding during the period | 12,968 | 12,846 | |||||||
Effect of dilutive potential common shares | 633 | 521 | |||||||
Weighted average number of diluted shares outstanding during the period | 13,601 | 13,367 | |||||||
Basic earnings per share | $ | 0.19 | $ | 0.1 | |||||
Diluted earnings per share | $ | 0.18 | $ | 0.09 | |||||
Accounts_Receivable
Accounts Receivable | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable | 4. Accounts Receivable | ||||||||
Accounts receivable consist of billed and unbilled amounts at the end of each period: | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Billed receivables | $ | 20,059 | $ | 25,231 | |||||
Unbilled receivables: | |||||||||
Amounts billable at end of period | 26,306 | 21,677 | |||||||
Other | 7,377 | 6,690 | |||||||
Total unbilled receivables | 33,683 | 28,367 | |||||||
Total accounts receivable | 53,742 | 53,598 | |||||||
Less: Allowance for doubtful accounts | 742 | 742 | |||||||
Total accounts receivable, net | $ | 53,000 | $ | 52,856 | |||||
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. Substantially all unbilled receivables are expected to be billed and collected within the next 12 months. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 24,250 | $ | 23,896 | |||||
Leasehold improvements | 9,226 | 9,221 | |||||||
Real property | 549 | 549 | |||||||
34,025 | 33,666 | ||||||||
Less: Accumulated depreciation and amortization | 27,245 | 26,295 | |||||||
Property and equipment, net | $ | 6,780 | $ | 7,371 | |||||
Depreciation expense for the three months ended March 31, 2015 and 2014 was $1.0 million. |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Contract and customer relationships | $ | 39,594 | $ | 20,987 | |||||
Developed software | 1,113 | — | |||||||
Less: Accumulated amortization | 18,408 | 17,268 | |||||||
Intangible assets, net | $ | 22,299 | $ | 3,719 | |||||
Amortization expense of intangible assets for the three months ended March 31, 2015 and 2014 was $1.1 million and $0.4 million, respectively. Intangible assets are primarily amortized on a straight line basis over periods ranging from three to eleven years. Expected amortization expense for the remainder of the fiscal year ending December 31, 2015, and for each of the fiscal years thereafter, is as follows: | |||||||||
For the year ending December 31, | |||||||||
2015 (remaining nine months) | $ | 3,068 | |||||||
2016 | 3,645 | ||||||||
2017 | 3,632 | ||||||||
2018 | 3,150 | ||||||||
2019 | 3,049 | ||||||||
Thereafter | 5,755 | ||||||||
$ | 22,299 |
ShareBased_Payments
Share-Based Payments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-Based Payments | 7. Share-Based Payments | ||||||||
During the three months ended March 31, 2015, the Company granted 50,000 stock options to purchase shares of Class A common stock with a weighted-average exercise price of $10.13, which represents the fair market value at the date of grant. During the three months ended March 31, 2015, 17,500 stock options were exercised at a weighted-average exercise price of $7.28. As of March 31, 2015, there were approximately 1,678,000 stock options outstanding. | |||||||||
During the three months ended March 31, 2015, 6,250 restricted shares vested. As of March 31, 2015, there were approximately 37,500 shares of restricted stock outstanding. | |||||||||
During the three months ended March 31, 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. | |||||||||
The following table summarizes stock compensation expense allocated to cost of revenue and general and administrative costs for the three months ended March 31, 2015 and 2014: | |||||||||
Three months ended March, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 63 | $ | 476 | |||||
General and administrative | 307 | 1,468 | |||||||
$ | 370 | $ | 1,944 | ||||||
As of March 31, 2015, there was approximately $1.0 million of total unrecognized compensation cost related to unvested stock compensation arrangements. This cost is expected to be fully amortized over the next four years, with approximately $0.6 million, $0.2 million, $0.1 million, and $0.1 million amortized during the remainder of 2015, and the full year of 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 | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt |
The Company’s senior credit facility, amended in December 2014, referred to herein as the “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 of 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 the Company’s 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 January 31, 2017. | |
The credit facility contains various restrictive covenants that, among other provisions, 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 or equivalent equity interests; 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 fixed charge coverage ratio, maintain a minimum funded debt to earnings ratio; and limit capital expenditures below certain thresholds. As of March 31, 2015, 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 outstanding shares of Class A common stock. No stock repurchases took place in the three months ended March 31, 2015. At March 31, 2015, $16.7 million was remaining under the Board of Directors’ authorization for share repurchases. | |
During the first quarter of 2015, NCI had a weighted average outstanding loan balance of $28.6 million which accrued interest at a weighted average borrowing rate of 2.3%. During the first quarter of 2014, NCI had a weighted average outstanding loan balance of $3.8 million which accrued interest at a weighted average borrowing rate of 2.3%. | |
As of March 31, 2015, the outstanding balance under the credit facility was $27.0 million and interest accrued at a rate of one-month LIBOR plus 210 basis points, or 2.3%. |
Computech_Acquisition
Computech Acquisition | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Computech Acquisition | 9. Computech Acquisition | ||||||||
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 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 acquisition was financed through a combination of cash on hand and borrowings of $34 million under the Company’s senior credit facility. Of the payment made at closing, $4.0 million was deposited into an escrow pending final determination of the working capital acquired and to secure the sellers’ indemnification obligations. Any remaining escrow amount at the end of the indemnification period not encumbered as a result of one or more indemnification claims will be distributed to the sellers. | |||||||||
The acquisition has been accounted for under the acquisition method of accounting which requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. The excess of the purchase consideration over the amounts assigned to tangible or intangible assets acquired and liabilities assumed is recognized as goodwill. Total acquisition and integration related costs through March 31, 2015 were approximately $0.2 million. | |||||||||
Purchase Price | |||||||||
Base purchase price | $ | 56,000 | |||||||
Working capital adjustment at closing | 3,971 | ||||||||
Preliminary Purchase price | $ | 59,971 | |||||||
NCI purchased Computech for $56.0 million, plus an additional $4.0 million in certain adjustments related to working capital. The purchase price was established based on upon estimated working capital and estimates of capital expenditures. Adjustments were made to the purchase price based on actual working capital balances acquired and capital expenditures made as of the acquisition date. The initial working capital adjustment occurred on January 1, 2015. | |||||||||
The following pro forma results are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the years presented or the results which may occur in the future. The following unaudited pro forma results of operations assume the Computech acquisition had occurred on January 1, 2014: | |||||||||
Pro Forma | |||||||||
Financial Information | |||||||||
Three months ended March, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 80,968 | $ | 98,222 | |||||
Net income | $ | 2,405 | $ | 2,230 | |||||
Basic earnings per share | $ | 0.19 | $ | 0.17 | |||||
Diluted earnings per share | $ | 0.18 | $ | 0.17 | |||||
Preliminary Allocation of Purchase Price | |||||||||
NCI is evaluating the valuation of the assets acquired and liabilities assumed of Computech and will complete the purchase accounting entries relating to the acquisition prior to the quarter ending March 31, 2016. The fair values assigned to the intangible assets acquired were based on preliminary estimates, assumptions, and other information compiled by management, including independent valuations that utilized established valuation techniques. Based on the Company’s preliminary valuation, the total estimated consideration of $60.0 million has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows: | |||||||||
Cash | $ | 3,314 | |||||||
Accounts receivable | 5,385 | ||||||||
Property and equipment | 108 | ||||||||
Other assets | 3,086 | ||||||||
Goodwill | 33,706 | ||||||||
Definite-life intangible assets | 19,720 | ||||||||
Accounts Payable | (909 | ) | |||||||
Accrued salary and benefits | (4,112 | ) | |||||||
Other accrued expenses | (68 | ) | |||||||
Deferred revenue | (227 | ) | |||||||
Deferred rent | (32 | ) | |||||||
$ | 59,971 | ||||||||
The definite life intangibles recognized in the allocation of the Computech purchase price consists of $18.6 million in contracts and customer relationships and $1.1 million in developed software. The fair value of the definite-lived intangible asset for contracts and customer relationships is based on existing customer contracts and anticipated follow-on contracts with existing customers and will be amortized on a straight-line basis over its expected life of seven years. The fair value of the definite-lived intangible asset for developed software will be amortized on a straight-line basis over its expected useful life of three years. | |||||||||
All goodwill and intangible asset amortization related to the acquisition of Computech, Inc. is expected to be deductible for income tax purposes. |
Dividends
Dividends | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Dividends | 10. Dividends | ||||||||||||||||
Our Board of Directors declared and the Company paid the following dividends during the periods presented: | |||||||||||||||||
Declaration Date | Dividend | Record Date | Total Amount | Payment Date | |||||||||||||
Per Share | |||||||||||||||||
February 11, 2015 | $ | 0.12 | February 20, 2015 | $ | 1,561 | March 13, 2015 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions |
The Company purchased services under a subcontract from Renegade Technology Systems, Inc. (formerly Net Commerce Corporation), 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. For the three months ended March 31, 2015 and 2014, the expense incurred under this agreement was approximately $166,000 and $354,000 respectively. As of March 31, 2015 and March 31, 2014, outstanding amounts due to Renegade Technology Systems, Inc. were $68,030 and $73,000, respectively. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 months ended March 31, 2015 and 2014. | ||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income | $ | 2,405 | $ | 1,241 | |||||
Weighted average number of basic shares outstanding during the period | 12,968 | 12,846 | |||||||
Effect of dilutive potential common shares | 633 | 521 | |||||||
Weighted average number of diluted shares outstanding during the period | 13,601 | 13,367 | |||||||
Basic earnings per share | $ | 0.19 | $ | 0.1 | |||||
Diluted earnings per share | $ | 0.18 | $ | 0.09 | |||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Summary of Accounts Receivable | Accounts receivable consist of billed and unbilled amounts at the end of each period: | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Billed receivables | $ | 20,059 | $ | 25,231 | |||||
Unbilled receivables: | |||||||||
Amounts billable at end of period | 26,306 | 21,677 | |||||||
Other | 7,377 | 6,690 | |||||||
Total unbilled receivables | 33,683 | 28,367 | |||||||
Total accounts receivable | 53,742 | 53,598 | |||||||
Less: Allowance for doubtful accounts | 742 | 742 | |||||||
Total accounts receivable, net | $ | 53,000 | $ | 52,856 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment | |||||||||
Furniture and equipment | $ | 24,250 | $ | 23,896 | |||||
Leasehold improvements | 9,226 | 9,221 | |||||||
Real property | 549 | 549 | |||||||
34,025 | 33,666 | ||||||||
Less: Accumulated depreciation and amortization | 27,245 | 26,295 | |||||||
Property and equipment, net | $ | 6,780 | $ | 7,371 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Details of Intangible Assets | The following table details intangible assets at the end of each period: | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Contract and customer relationships | $ | 39,594 | $ | 20,987 | |||||
Developed software | 1,113 | — | |||||||
Less: Accumulated amortization | 18,408 | 17,268 | |||||||
Intangible assets, net | $ | 22,299 | $ | 3,719 | |||||
Expected Amortization Expense | Expected amortization expense for the remainder of the fiscal year ending December 31, 2015, and for each of the fiscal years thereafter, is as follows: | ||||||||
For the year ending December 31, | |||||||||
2015 (remaining nine months) | $ | 3,068 | |||||||
2016 | 3,645 | ||||||||
2017 | 3,632 | ||||||||
2018 | 3,150 | ||||||||
2019 | 3,049 | ||||||||
Thereafter | 5,755 | ||||||||
$ | 22,299 |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Stock Compensation Expense Allocated to Cost of Revenue and General and Administrative Costs | The following table summarizes stock compensation expense allocated to cost of revenue and general and administrative costs for the three months ended March 31, 2015 and 2014: | ||||||||
Three months ended March, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 63 | $ | 476 | |||||
General and administrative | 307 | 1,468 | |||||||
$ | 370 | $ | 1,944 | ||||||
Computech_Acquisition_Tables
Computech Acquisition (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Purchase Price | |||||||||
Base purchase price | $ | 56,000 | |||||||
Working capital adjustment at closing | 3,971 | ||||||||
Preliminary Purchase price | $ | 59,971 | |||||||
Schedule of Pro Forma Results of Operations | The following unaudited pro forma results of operations assume the Computech acquisition had occurred on January 1, 2014: | ||||||||
Pro Forma | |||||||||
Financial Information | |||||||||
Three months ended March, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 80,968 | $ | 98,222 | |||||
Net income | $ | 2,405 | $ | 2,230 | |||||
Basic earnings per share | $ | 0.19 | $ | 0.17 | |||||
Diluted earnings per share | $ | 0.18 | $ | 0.17 | |||||
Schedule of Assets Acquired and Liabilities Assumed | Based on the Company’s preliminary valuation, the total estimated consideration of $60.0 million has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows: | ||||||||
Cash | $ | 3,314 | |||||||
Accounts receivable | 5,385 | ||||||||
Property and equipment | 108 | ||||||||
Other assets | 3,086 | ||||||||
Goodwill | 33,706 | ||||||||
Definite-life intangible assets | 19,720 | ||||||||
Accounts Payable | (909 | ) | |||||||
Accrued salary and benefits | (4,112 | ) | |||||||
Other accrued expenses | (68 | ) | |||||||
Deferred revenue | (227 | ) | |||||||
Deferred rent | (32 | ) | |||||||
$ | 59,971 | ||||||||
Dividends_Tables
Dividends (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Schedule of Dividends Declared and Paid | Our Board of Directors declared and the Company paid the following dividends during the periods presented: | ||||||||||||||||
Declaration Date | Dividend | Record Date | Total Amount | Payment Date | |||||||||||||
Per Share | |||||||||||||||||
February 11, 2015 | $ | 0.12 | February 20, 2015 | $ | 1,561 | March 13, 2015 |
Business_Overview_Additional_I
Business Overview - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment | ||
Schedule Of Description Of Business [Line Items] | ||
Number of reportable segment | 1 | |
Percentage of revenue from Department of Defense | 60.00% | 78.00% |
Percentage of revenue from federal civilian agencies | 40.00% | 22.00% |
Percentage of revenue from PEO Soldiers contract | 10.00% | 11.00% |
PEO Soldier [Member] | ||
Schedule Of Description Of Business [Line Items] | ||
Option contract term | 3 years | |
Number of option period contracts | 2 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Equity Option [Member]) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | 109,000 | 21,000 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $2,405 | $1,241 |
Weighted average number of basic shares outstanding during the period | 12,968 | 12,846 |
Effect of dilutive potential common shares | 633 | 521 |
Weighted average number of diluted shares outstanding during the period | 13,601 | 13,367 |
Basic earnings per share | $0.19 | $0.10 |
Diluted earnings per share | $0.18 | $0.09 |
Accounts_Receivable_Summary_of
Accounts Receivable - Summary of Accounts Receivable (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Billed receivables | $20,059 | $25,231 |
Unbilled receivables: | ||
Amounts billable at end of period | 26,306 | 21,677 |
Other | 7,377 | 6,690 |
Total unbilled receivables | 33,683 | 28,367 |
Total accounts receivable | 53,742 | 53,598 |
Less: Allowance for doubtful accounts | 742 | 742 |
Total accounts receivable, net | $53,000 | $52,856 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $34,025 | $33,666 |
Less: Accumulated depreciation and amortization | 27,245 | 26,295 |
Property and equipment, net | 6,780 | 7,371 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,250 | 23,896 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,226 | 9,221 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $1 | $1 |
Intangible_Assets_Details_of_I
Intangible Assets - Details of Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $18,408 | $17,268 |
Intangible assets, net | 22,299 | 3,719 |
Contract and Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 39,594 | 20,987 |
Developed Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $1,113 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of intangible assets | $1.10 | $0.40 |
Intangible assets method of amortization, description | Intangible assets are primarily amortized on a straight line basis over periods ranging from three to eleven years. | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortized periods | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortized periods | 11 years |
Intangible_Assets_Expected_Amo
Intangible Assets - Expected Amortization Expense (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 (remaining nine months) | $3,068 | |
2016 | 3,645 | |
2017 | 3,632 | |
2018 | 3,150 | |
2019 | 3,049 | |
Thereafter | 5,755 | |
Intangible assets, net | $22,299 | $3,719 |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Milestone | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 50,000 | |
Weighted average exercise price of stock option | $10.13 | |
Weighted average grant date fair value of stock option | $10.13 | |
Stock options exercised | 17,500 | |
Weighted average exercise price of stock option | $7.28 | |
Stock options outstanding | 1,678,000 | |
Restricted stock outstanding | 37,500 | |
Option granted | 737,000 | |
Stock discrete acceleration milestones | 2 | |
Period of accelerated in milestones | 30 days | |
Stock compensation costs | $370,000 | $1,944,000 |
Total unrecognized compensation cost related to unvested stock compensation | 1,000,000 | |
Amortized unrecognized compensation cost period | 4 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 | |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation costs | 307,000 | 1,468,000 |
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 | 63,000 | 476,000 |
Cost of Revenue [Member] | Accelerated Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation costs | 400,000 | |
Remainder of 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization of cost of unvested stock compensation arrangements | 600,000 | |
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 | |
2018 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization of cost of unvested stock compensation arrangements | $100,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested | 6,250 |
ShareBased_Payments_Summary_of
Share-Based Payments - Summary of Stock Compensation Expense Allocated to Cost of Revenue and General and Administrative Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock compensation | $370 | $1,944 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock compensation | 63 | 476 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock compensation | $307 | $1,468 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 outstanding shares | 17,500,000 | |
Repurchase of common stock | 0 | |
Remaining authorized repurchase amount | 16,700,000 | |
Weighted average outstanding loan balance | 28,600,000 | 3,800,000 |
Weighted average borrowing rate | 2.30% | 2.30% |
LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis points | 2.10% | |
Credit facility, outstanding balance | $27,000,000 | |
Interest rate at period end | 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% |
Computech_Acquisition_Addition
Computech Acquisition - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Jan. 01, 2015 | Mar. 31, 2015 | Jan. 01, 2015 | |
Business Acquisition [Line Items] | |||
Business acquisition net of cash acquired | $56,657,000 | ||
Computech, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition completion date | 1-Jan-15 | ||
Business acquisition stock purchase percentage | 100.00% | 100.00% | |
Business acquisition net of cash acquired | 56,000,000 | ||
Amount deposited into escrow | 4,000,000 | 4,000,000 | |
Total acquisition and integration related costs | 200,000 | ||
Business combination purchase price | 56,000,000 | ||
Additional adjustments related to working capital | 3,971,000 | ||
Business combination estimated consideration | 59,971,000 | ||
Definite life intangibles | 19,720,000 | 19,720,000 | |
Computech, Inc. [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Definite life intangibles | 18,600,000 | 18,600,000 | |
Definite-lived intangible asset useful life | 7 years | ||
Computech, Inc. [Member] | Computer Software, Intangible Asset [Member] | |||
Business Acquisition [Line Items] | |||
Definite life intangibles | 1,100,000 | 1,100,000 | |
Definite-lived intangible asset useful life | 3 years | ||
Computech, Inc. [Member] | Senior Credit Facility [Member] | |||
Business Acquisition [Line Items] | |||
Borrowings under senior credit facility | $34,000,000 |
Computech_Acquisition_Schedule
Computech Acquisition - Schedule of Purchase Price (Detail) (Computech, Inc. [Member], USD $) | 0 Months Ended |
Jan. 01, 2015 | |
Computech, Inc. [Member] | |
Business Acquisition [Line Items] | |
Base purchase price | $56,000,000 |
Working capital adjustment at closing | 3,971,000 |
Preliminary Purchase price | $59,971,000 |
Computech_Acquisition_Schedule1
Computech Acquisition - Schedule of Pro Forma Results of Operations (Detail) (Computech, Inc. [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Computech, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | $80,968 | $98,222 |
Net income | $2,405 | $2,230 |
Basic earnings per share | $0.19 | $0.17 |
Diluted earnings per share | $0.18 | $0.17 |
Computech_Acquisition_Schedule2
Computech Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Mar. 31, 2015 | Jan. 01, 2015 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ||
Goodwill | $33,706 | |
Computech, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 3,314 | |
Accounts receivable | 5,385 | |
Property and equipment | 108 | |
Other assets | 3,086 | |
Goodwill | 33,706 | |
Definite-life intangible assets | 19,720 | |
Accounts Payable | -909 | |
Accrued salary and benefits | -4,112 | |
Other accrued expenses | -68 | |
Deferred revenue | -227 | |
Deferred rent | -32 | |
Adjusted purchase price | $59,971 |
Dividends_Schedule_of_Dividend
Dividends - Schedule of Dividends Declared and Paid (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Equity [Abstract] | |
Declaration Date | 11-Feb-15 |
Dividend Per Share | $0.12 |
Record Date | 20-Feb-15 |
Total Amount | $1,561 |
Payment Date | 13-Mar-15 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Renegade Technology Systems, Inc. [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Renegade Technology Systems, Inc. [Member] | ||
Related Party Transaction [Line Items] | ||
Purchased services from Net Commerce Corporation | $166,000 | $354,000 |
Amount due to related party | $68,030 | $73,000 |