NCI 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	NCIT
Entity Registrant Name	NCI, Inc.
Entity Central Index Key	1,334,478
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,034,823
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,500,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 79,753	$ 82,310	$ 245,308	$ 249,077
Operating expenses:
Cost of revenue	66,305	68,677	204,213	207,832
General and administrative expenses	6,434	6,445	19,375	19,941
Depreciation and amortization	1,737	1,794	5,213	5,774
Acquisition and integration related expenses		6		428
Total operating expenses	74,476	76,922	228,801	233,975
Operating income	5,277	5,388	16,507	15,102
Interest expense, net	134	204	477	662
Income before income taxes	5,143	5,184	16,030	14,440
Provision for income taxes	1,882	2,013	6,206	5,818
Net income	$ 3,261	$ 3,171	$ 9,824	$ 8,622
Basic:
Weighted average shares outstanding	13,201	13,029	13,180	13,004
Net income per share	$ 0.25	$ 0.24	$ 0.75	$ 0.66
Diluted:
Weighted average shares outstanding	13,857	13,697	13,863	13,659
Net income per share	$ 0.24	$ 0.23	$ 0.71	$ 0.63
Cash dividend declared and paid per share			$ 0.15	$ 0.12

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 244	$ 233
Accounts receivable, net	53,332	60,044
Prepaid expenses and other current assets	3,979	3,447
Total current assets	57,555	63,724
Property and equipment, net	6,338	6,698
Other assets	1,525	1,548
Deferred tax assets, net	38,066	38,789
Intangible assets, net	16,498	19,231
Goodwill	33,878	33,878
Total assets	153,860	163,868
Current liabilities:
Accounts payable	11,226	19,693
Accrued salaries and benefits	17,613	18,977
Deferred revenue	2,312	2,217
Other accrued expenses	4,563	3,843
Total current liabilities	35,714	44,730
Long-term debt		10,000
Other long-term liabilities	2,622	2,578
Total liabilities	38,336	57,308
Stockholders' equity:
Additional paid-in capital	77,727	76,569
Treasury stock at cost-917 shares of Class A common stock as of September 30, 2016 and December 31, 2015	(8,331)	(8,331)
Retained earnings	45,853	38,049
Total stockholders' equity	115,524	106,560
Total liabilities and stockholders' equity	153,860	163,868
Class A Common Stock [Member]
Stockholders' equity:
Common stock	189	187
Class B Common Stock [Member]
Stockholders' equity:
Common stock	$ 86	$ 86

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Class A Common Stock [Member]
Common stock, par value	$ 0.019	$ 0.019
Common stock, shares authorized	37,500,000	37,500,000
Common stock, shares issued	9,952,000	9,843,000
Common stock, shares outstanding	9,035,000	8,961,000
Treasury stock at cost, shares	917,000	917,000
Class B Common Stock [Member]
Common stock, par value	$ 0.019	$ 0.019
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	4,500,000	4,500,000
Common stock, shares outstanding	4,500,000	4,500,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 9,824	$ 8,622
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,213	5,774
Share-based compensation	769	1,036
Deferred income taxes	723	228
Changes in operating assets and liabilities:
Accounts receivable, net	6,712	5,421
Prepaid expenses and other assets	(509)	3,893
Accounts payable	(8,467)	(1,387)
Accrued expenses and other liabilities	(504)	(1,105)
Net cash provided by operating activities	13,761	22,482
Cash flows from investing activities:
Purchases of property and equipment	(2,121)	(1,537)
Cash paid for acquisition, net of cash acquired		(56,657)
Net cash used in investing activities	(2,121)	(58,194)
Cash flows from financing activities:
Borrowings under credit facility	126,303	146,395
Repayments on credit facility	(136,303)	(135,099)
Proceeds from exercise of stock options	391	235
Repurchase of stock awards		(53)
Dividends paid	(2,020)	(1,561)
Net cash (used in) provided by financing activities	(11,629)	9,917
Net change in cash and cash equivalents	11	(25,795)
Cash and cash equivalents, beginning of period	233	25,819
Cash and cash equivalents, end of period	244	24
Cash paid during the period for:
Interest	372	588
Income taxes	$ 4,670	$ 2,871

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
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 (collectively “NCI” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the U. S. (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U. S. Securities and Exchange Commission (the “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, 2016 and its results of operations for the three and nine months ended September 30, 2016 and 2015, and cash flows for the nine months ended September 30, 2016 and 2015, 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 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, 2015, as filed with the SEC . Recently Issued Accounting Pronouncements On November 20, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. To simplify the presentation of deferred income taxes, the amendments in this ASU require that deferred tax assets and liabilities be classified as non-current in a classified balance sheet. As permitted, the Company elected to early adopt this ASU using the retrospective approach, effective with its Form 10-Q filing for March 31, 2016. As a result of adopting this ASU, current net deferred taxes of $4.0 million were reclassified to net non-current deferred taxes as of December 31, 2015. The adoption of ASU 2015-17 had no impact on the Company’s consolidated statements of income or cash flows for the year ended December 31, 2015 or the condensed consolidated statements of income or cash flows for the three and nine month periods ended September 30, 2016. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of right-to-use assets and lease liabilities arising from capital leases and operating leases in the statement of comprehensive income and the statement of financial position, respectively. The Company will adopt the standard effective January 1, 2019. The Company has not yet completed its evaluation of the impact that the standard may have on its consolidated balance sheet. The actual impact will depend on the Company’s lease portfolio at the time of adoption. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance with respect to principal versus agent considerations under the new revenue recognition standard, ASU 2014-09, Revenue from Contracts with Customers. In April 2016, the FASB issued ASU 2016-10, which clarifies the implementation guidance with respect to identifying promised goods or services from a principal and agent perspective under ASU 2014-09. The Company will adopt the standard effective January 1, 2018 and is continuing to evaluate the full effect that ASU 2014-09 and related subsequent updates will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The Company is evaluating the full effect that ASU 2016-09 will have on its consolidated financial statements and will adopt the standard effective January 1, 2017, but at this time believe it will not have a material effect on its consolidated financial statements when it is adopted by the Company in 2017. In August 2016, the FASB issued ASU 2016-15, which provides updated guidance on eight specific cash flow issues and how they should be presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The eight specific cash flow issues addressed are being evaluated by the Company as to the likelihood of those cash flow transactions occurring and potential corresponding effect on the Company’s statement of cash flows. The Company will adopt the standard effective January 1, 2018.

Business Overview

Business Overview	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	2. Business Overview NCI is a leading provider of enterprise solutions and services to U.S. defense, intelligence, health care and civilian government agencies. The Company has the expertise and proven track record to solve its customers’ most important and complex mission challenges through technology and innovation. The Company’s team of highly skilled professionals focuses on delivering cost-effective solutions and services in the areas of agile software application and systems development/integration; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; cloud computing and IT infrastructure optimization; health IT and medical support; IT service management; and modeling, simulation and training. Headquartered in Reston, Virginia, the Company has approximately 2,000 employees operating at more than 100 locations worldwide. The majority of the Company’s revenue is derived from contracts with the U.S. Federal Government, directly as a prime contractor or as a subcontractor. NCI primarily conducts business throughout the U. S. The Company reports operating results and financial data as one reportable segment. NCI’s Program Executive Office Soldier (“PEO Soldier”) contract is the Company’s largest revenue-generating contract and accounted for approximately 16% and 9% of revenue for the three months ended September 30, 2016 and 2015, respectively. PEO Soldier accounted for approximately 16% and 10% of revenue for the nine months ended September 30, 2016 and 2015, respectively. The Company’s PEO Soldier program is a cost-plus fee contract consisting of a base period and four option periods for a total term of five years, which commenced in October 2015. NCI’s Cyber Network Operations and Security Support (“CNOSS”) program, supporting the U.S. Army Network Enterprise Technology Command accounted for approximately 12% and 7% of revenue for the three months ended September 30, 2016 and 2015, respectively. CNOSS accounted for approximately 11% and 6% of revenue for the nine months ended September 30, 2016 and 2015, respectively. This cost-plus-fixed-fee, single-award indefinite delivery indefinite quantity contract consists of a 12-month base period with two one-year option periods and one six-month option period, and commenced in October 2014.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	3. Earnings Per Share Basic earnings per share excludes dilution and are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects 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, 2016 and 2015, approximately 25,000 and 30,000 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, 2016 and 2015, approximately 11,000 and 63,000 shares, respectively, were not included in the computation of diluted earnings per share, because to do so would have been anti-dilutive. The following table 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, 2016 and 2015. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net income $ 3,261 $ 3,171 $ 9,824 $ 8,622 Weighted average number of basic shares outstanding during the period 13,201 13,029 13,180 13,004 Dilutive effect of stock options and restricted stock after application of treasury stock method 656 668 683 655 Weighted average number of diluted shares outstanding during the period 13,857 13,697 13,863 13,659 Basic earnings per share $ 0.25 $ 0.24 $ 0.75 $ 0.66 Diluted earnings per share $ 0.24 $ 0.23 $ 0.71 $ 0.63

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Accounts Receivable	4. Accounts Receivable Accounts receivable consists of billed and unbilled amounts. The following table details accounts receivable at the end of each period: As of September 30, December 31, Billed receivables $ 22,762 $ 23,621 Unbilled receivables: Amounts billable at end of period 26,295 27,185 Other 5,017 9,980 Total unbilled receivables 31,312 37,165 Total accounts receivable 54,074 60,787 Less: Allowance for doubtful accounts 742 742 Total accounts receivable, net $ 53,332 $ 60,044 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	9 Months Ended
	Sep. 30, 2016
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, Property and equipment Furniture and equipment $ 20,949 $ 26,573 Leasehold improvements 7,411 9,323 Real property 549 549 28,909 36,444 Less: Accumulated depreciation and amortization 22,571 29,746 Property and equipment, net $ 6,338 $ 6,698 Depreciation and amortization expense for the three months ended September 30, 2016 and 2015 was $0.8 million. Depreciation expense for the nine months ended September 30, 2016 and 2015 was $2.5 million and $2.6 million, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2016
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, Contract and customer relationships $ 39,594 $ 39,594 Developed software 1,113 1,113 Less: Accumulated amortization (24,209 ) (21,476 ) Intangible assets, net $ 16,498 $ 19,231 Amortization expense of intangible assets for the three months ended September 30, 2016 and 2015 was $0.9 million and $1.0 million, respectively. Amortization expense of intangible assets for the nine months ended September 30, 2016 and 2015 was $2.7 million and $3.2 million, respectively. Intangible assets are primarily amortized on a straight line basis over periods ranging from three to 11 years. Expected amortization expense for the remainder of the fiscal year ending December 31, 2016, and for each of the fiscal years thereafter, is as follows: For the year ending December 31, 2016 (remaining three months) $ 911 2017 3,632 2018 3,149 2019 3,049 2020 3,027 Thereafter 2,730 $ 16,498

Share-Based Payments

Share-Based Payments	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Payments	7. Share-Based Payments During the three months ended September 30, 2016, the Company did not grant any stock options, and during the nine months ended September 30, 2016, the Company granted 25,000 stock options to purchase shares of Class A common stock with a weighted-average exercise price of $13.29, which represents the fair market value of the Company’s Class A common stock at the date of grant. During the three months ended September 30, 2016, a total of 35,426 stock options were exercised at a weighted-average exercise price of $6.38. During the nine months ended September 30, 2016, a total of 73,758 stock options were exercised at a weighted-average exercise price of $5.66. As of September 30, 2016, there were 1,499,074 stock options outstanding. During the three months ended September 30, 2016, no restricted stock was granted and 5,000 shares of restricted stock were cancelled. During the nine months ended September 30, 2016, 25,000 shares of restricted stock were granted and 25,000 shares of restricted stock were cancelled. As of September 30, 2016, there were 315,000 shares of restricted stock outstanding. The following table summarizes stock compensation expense allocated to cost of revenue and general and administrative costs for the three and nine months ended September 30, 2016 and 2015: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Cost of revenue $ 47 $ 76 $ 162 $ 199 General and administrative 179 264 607 837 $ 226 $ 340 $ 769 $ 1,036 As of September 30, 2016, there was approximately $3.3 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 $0.2 million, $0.9 million, $0.9 million, $0.7 million and $0.6 million amortized during the remainder of 2016, and the full years of 2017, 2018, 2019, and 2020, respectively. The cost of stock compensation is included in the Company’s Condensed Consolidated Statements of Income and expensed over the service period of the options.

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	8. Debt NCI’s senior credit facility, amended in December 2014, and 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 the Company to increase its 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 the one-month London Interbank offered rate or 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 or EBITDA, as defined in the credit facility. The credit facility expires on January 31, 2017. Accordingly all borrowings are classified as current liabilities as they are due and payable within the next 12 months. The credit facility contains various covenants that limit, among other things, 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 September 30, 2016, 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 or nine months ended September 30, 2016. At September 30, 2016, $16.7 million was remaining under the board of directors’ authorization for share repurchases. During the third quarter of 2016, the Company had a weighted average outstanding loan balance of $6.5 million which accrued interest at a weighted average borrowing rate of 2.5%. During the third quarter of 2015, the Company had a weighted average outstanding loan balance of $18.8 million which accrued interest at a weighted average borrowing rate of 2.3%. As of September 30, 2016, there was no outstanding balance under the credit facility.

Computech Acquisition

Computech Acquisition	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Computech Acquisition	9. Computech Acquisition On January 1, 2015, the Company completed its purchase of 100% of the outstanding stock of Computech, Inc. (“Computech”), a leader in agile and lean application software development and IT operations and maintenance, for approximately $56.7 million, net of cash acquired. 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 was recognized as goodwill. Allocation of Purchase Price The Company has completed the valuation of the assets acquired and liabilities assumed of Computech. The fair values assigned to the intangible assets acquired were based on estimates, assumptions, and other information compiled by management, including independent valuations that utilized established valuation techniques. Based on the Company’s valuation, the total consideration of approximately $56.7 million, net of $3.3 million of cash acquired, has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows: Accounts receivable and other assets 8,407 Goodwill 33,878 Definite-life intangible assets 19,720 Accrued salary and benefits (4,112 ) Other accrued expenses (1,236 ) $ 56,657 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 is expected to be deductible for income tax purposes.

Dividends

Dividends	9 Months Ended
	Sep. 30, 2016
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 February 10, 2015 $ 0.12 February 25, 2015 $ 1,561 March 13, 2015 February 8, 2016 $ 0.15 February 26, 2016 $ 2,020 March 18, 2016

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	11. Related Party Transactions The Company purchases services under a subcontract from Renegade Technology Systems, Inc., which is a government contractor wholly-owned by Rajiv Narang, the son of Charles K. Narang, Chairman of the board of directors. For the three months ended September 30, 2016 and 2015, the expense incurred under this agreement was approximately $298,000 and $177,000, respectively. For the nine months ended September 30, 2016 and 2015, the expense incurred under this agreement was approximately $656,000 and $525,000, respectively. As of September 30, 2016 and 2015, outstanding amounts due to Renegade Technology Systems, Inc. under this agreement were $103,150 and $51,137, respectively.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	12. 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 through 2007 for NCI Information Systems, Inc., the Company’s 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	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events Change in Management On October 31, 2016, the Company announced that Brian J. Clark, the Company’s President and Chief Executive Officer (“CEO”), has resigned from his employment with the Company and as a member of the Board of Directors of the Company, effective as of October 31, 2016. In connection with his resignation, the Company and Mr. Clark entered into a Separation and Transition Agreement which provides for the payment of certain severance benefits to Mr. Clark including the following: (a) the Company will pay Mr. Clark a total fee of $250,000 for consulting services to be provided through April 30, 2017; (b) the Company will pay Mr. Clark a lump sum cash payment equal to twenty-four months of his annual base salary in the amount of $1,000,000; (c) the Company will pay Mr. Clark a lump sum cash payment equal to his prorated annual bonus for 2016 at the target level of performance in the amount of $420,000; (d) the Company will continue to provide Mr. Clark with health and welfare coverage and executive long-term disability coverage at no additional cost to him for one year; and (e) the Company will repurchase 390,000 stock options held by Mr. Clark that are vested and exercisable as of October 31, 2016 at a purchase price per option equal to the closing sale price of a share of NCI common stock on The Nasdaq Stock Market on October 28, 2016 less the applicable per share exercise price of the options. The Board has appointed Paul A. Dillahay as the Company’s President and CEO and a member of the Board effective as of October 31, 2016. Mr. Dillahay will initially receive a one-time signing bonus in the amount of $325,000 and will be eligible for an annual cash bonus for the fourth quarter of 2016 equal to $125,000. He will receive an option award of 250,000 shares and a grant of 100,000 shares of restricted stock. The options vest in five equal annual installments beginning on the first anniversary of the grant date. The restricted stock awards vest in accordance with the following schedule: 33 1/3% vest on January 31, 2017; 33 1/3% vest one year from the grant date and 33 1/3% vest two years from the grant date.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements On November 20, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. To simplify the presentation of deferred income taxes, the amendments in this ASU require that deferred tax assets and liabilities be classified as non-current in a classified balance sheet. As permitted, the Company elected to early adopt this ASU using the retrospective approach, effective with its Form 10-Q filing for March 31, 2016. As a result of adopting this ASU, current net deferred taxes of $4.0 million were reclassified to net non-current deferred taxes as of December 31, 2015. The adoption of ASU 2015-17 had no impact on the Company’s consolidated statements of income or cash flows for the year ended December 31, 2015 or the condensed consolidated statements of income or cash flows for the three and nine month periods ended September 30, 2016. In February 2016, the FASB issued ASU 2016-02, which requires the recognition of right-to-use assets and lease liabilities arising from capital leases and operating leases in the statement of comprehensive income and the statement of financial position, respectively. The Company will adopt the standard effective January 1, 2019. The Company has not yet completed its evaluation of the impact that the standard may have on its consolidated balance sheet. The actual impact will depend on the Company’s lease portfolio at the time of adoption. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance with respect to principal versus agent considerations under the new revenue recognition standard, ASU 2014-09, Revenue from Contracts with Customers. In April 2016, the FASB issued ASU 2016-10, which clarifies the implementation guidance with respect to identifying promised goods or services from a principal and agent perspective under ASU 2014-09. The Company will adopt the standard effective January 1, 2018 and is continuing to evaluate the full effect that ASU 2014-09 and related subsequent updates will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The Company is evaluating the full effect that ASU 2016-09 will have on its consolidated financial statements and will adopt the standard effective January 1, 2017, but at this time believe it will not have a material effect on its consolidated financial statements when it is adopted by the Company in 2017. In August 2016, the FASB issued ASU 2016-15, which provides updated guidance on eight specific cash flow issues and how they should be presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The eight specific cash flow issues addressed are being evaluated by the Company as to the likelihood of those cash flow transactions occurring and potential corresponding effect on the Company’s statement of cash flows. The Company will adopt the standard effective January 1, 2018.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Common Share	The following table 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, 2016 and 2015. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net income $ 3,261 $ 3,171 $ 9,824 $ 8,622 Weighted average number of basic shares outstanding during the period 13,201 13,029 13,180 13,004 Dilutive effect of stock options and restricted stock after application of treasury stock method 656 668 683 655 Weighted average number of diluted shares outstanding during the period 13,857 13,697 13,863 13,659 Basic earnings per share $ 0.25 $ 0.24 $ 0.75 $ 0.66 Diluted earnings per share $ 0.24 $ 0.23 $ 0.71 $ 0.63

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Summary of Accounts Receivable	The following table details accounts receivable at the end of each period: As of September 30, December 31, Billed receivables $ 22,762 $ 23,621 Unbilled receivables: Amounts billable at end of period 26,295 27,185 Other 5,017 9,980 Total unbilled receivables 31,312 37,165 Total accounts receivable 54,074 60,787 Less: Allowance for doubtful accounts 742 742 Total accounts receivable, net $ 53,332 $ 60,044

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
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, Property and equipment Furniture and equipment $ 20,949 $ 26,573 Leasehold improvements 7,411 9,323 Real property 549 549 28,909 36,444 Less: Accumulated depreciation and amortization 22,571 29,746 Property and equipment, net $ 6,338 $ 6,698

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
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, Contract and customer relationships $ 39,594 $ 39,594 Developed software 1,113 1,113 Less: Accumulated amortization (24,209 ) (21,476 ) Intangible assets, net $ 16,498 $ 19,231
Expected Amortization Expense	Expected amortization expense for the remainder of the fiscal year ending December 31, 2016, and for each of the fiscal years thereafter, is as follows: For the year ending December 31, 2016 (remaining three months) $ 911 2017 3,632 2018 3,149 2019 3,049 2020 3,027 Thereafter 2,730 $ 16,498

Share-Based Payments (Tables)

Share-Based Payments (Tables)	9 Months Ended
	Sep. 30, 2016
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 and nine months ended September 30, 2016 and 2015: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Cost of revenue $ 47 $ 76 $ 162 $ 199 General and administrative 179 264 607 837 $ 226 $ 340 $ 769 $ 1,036

Computech Acquisition (Tables)

Computech Acquisition (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Assets Acquired and Liabilities Assumed	Based on the Company’s valuation, the total consideration of approximately $56.7 million, net of $3.3 million of cash acquired, has been allocated to assets acquired (including identifiable intangible assets and goodwill) and liabilities assumed, as follows: Accounts receivable and other assets 8,407 Goodwill 33,878 Definite-life intangible assets 19,720 Accrued salary and benefits (4,112 ) Other accrued expenses (1,236 ) $ 56,657

Dividends (Tables)

Dividends (Tables)	9 Months Ended
	Sep. 30, 2016
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 February 10, 2015 $ 0.12 February 25, 2015 $ 1,561 March 13, 2015 February 8, 2016 $ 0.15 February 26, 2016 $ 2,020 March 18, 2016

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Non-current deferred taxes, net	$ 38,066	$ 38,789
Adjustments for New Accounting Pronouncement [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current deferred taxes, net		(4,000)
Non-current deferred taxes, net		$ 4,000

Business Overview - Additional

Business Overview - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016EmployeeLocation	Sep. 30, 2015	Sep. 30, 2016EmployeeLocationSegmentItem	Sep. 30, 2015
Schedule Of Description Of Business [Line Items]
Number of employees, approximate | Employee	2,000		2,000
Number of reportable segment | Segment			1
Cyber Network Operations and Security Support [Member]
Schedule Of Description Of Business [Line Items]
Business contract description			This cost-plus-fixed-fee, single-award indefinite delivery indefinite quantity contract consists of a 12-month base period with two one-year option periods and one six-month option period, and commenced in October 2014.
Program Executive Office Soldier [Member]
Schedule Of Description Of Business [Line Items]
Option contract term			5 years
Number of option period contracts | Item			4
Sales [Member] | Government Contracts Concentration Risk [Member] | Cyber Network Operations and Security Support [Member]
Schedule Of Description Of Business [Line Items]
Concentration risk, percentage	12.00%	7.00%	11.00%	6.00%
Sales [Member] | Government Contracts Concentration Risk [Member] | Program Executive Office Soldier [Member]
Schedule Of Description Of Business [Line Items]
Concentration risk, percentage	16.00%	9.00%	16.00%	10.00%
Minimum [Member]
Schedule Of Description Of Business [Line Items]
Number of locations | Location	100		100

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	25,000	30,000	11,000	63,000

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 3,261	$ 3,171	$ 9,824	$ 8,622
Weighted average number of basic shares outstanding during the period	13,201	13,029	13,180	13,004
Dilutive effect of stock options and restricted stock after application of treasury stock method	656	668	683	655
Weighted average number of diluted shares outstanding during the period	13,857	13,697	13,863	13,659
Basic earnings per share	$ 0.25	$ 0.24	$ 0.75	$ 0.66
Diluted earnings per share	$ 0.24	$ 0.23	$ 0.71	$ 0.63

Accounts Receivable - Summary o

Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Billed receivables	$ 22,762	$ 23,621
Unbilled receivables:
Amounts billable at end of period	26,295	27,185
Other	5,017	9,980
Total unbilled receivables	31,312	37,165
Total accounts receivable	54,074	60,787
Less: Allowance for doubtful accounts	742	742
Total accounts receivable, net	$ 53,332	$ 60,044

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Maximum period in which unbilled receivables are expected to be billed	12 months

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 28,909	$ 36,444
Less: Accumulated depreciation and amortization	22,571	29,746
Property and equipment, net	6,338	6,698
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,949	26,573
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,411	9,323
Real Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 549	$ 549

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 0.8	$ 0.8	$ 2.5	$ 2.6

Intangible Assets - Details of

Intangible Assets - Details of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated amortization	$ (24,209)	$ (21,476)
Intangible assets, net	16,498	19,231
Contract and Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	39,594	39,594
Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1,113	$ 1,113

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 0.9	$ 1	$ 2.7	$ 3.2
Intangible assets method of amortization, description			Intangible assets are primarily amortized on a straight line basis over periods ranging from three to 11 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 Am

Intangible Assets - Expected Amortization Expense (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remaining three months)	$ 911
2,017	3,632
2,018	3,149
2,019	3,049
2,020	3,027
Thereafter	2,730
Intangible assets, net	$ 16,498	$ 19,231

Share-Based Payments - Addition

Share-Based Payments - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted | shares	0	25,000
Weighted average exercise price of stock option | $ / shares		$ 13.29
Stock options exercised | shares	35,426	73,758
Weighted average exercise price of stock options exercised | $ / shares	$ 6.38	$ 5.66
Stock options outstanding | shares	1,499,074	1,499,074
Total unrecognized compensation cost related to unvested stock compensation | $	$ 3.3	$ 3.3
Amortization of cost of unvested stock compensation arrangements, 2016 | $		0.2
Amortization of cost of unvested stock compensation arrangements, 2017 | $		0.9
Amortization of cost of unvested stock compensation arrangements, 2018 | $		0.9
Amortization of cost of unvested stock compensation arrangements, 2019 | $		0.7
Amortization of cost of unvested stock compensation arrangements, 2020 | $		$ 0.6
Amortized unrecognized compensation cost period		5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted | shares	0	25,000
Restricted stock outstanding | shares	315,000	315,000
Restricted stock cancelled | shares	5,000	25,000

Share-Based Payments - Summary

Share-Based Payments - Summary of Stock Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation	$ 226	$ 340	$ 769	$ 1,036
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation	47	76	162	199
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation	$ 179	$ 264	$ 607	$ 837

Debt - Additional Information (

Debt - Additional Information (Detail) - Senior Credit Facility [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Line of Credit Facility [Line Items]
Additional borrowing capacity, accordion feature	$ 45,000,000		$ 45,000,000
Maximum borrowing capacity including accordion feature	125,000,000		125,000,000
Capacity available to repurchase outstanding shares	17,500,000		17,500,000
Repurchase of common stock	0		0
Remaining authorized repurchase amount	16,700,000		$ 16,700,000
Weighted average outstanding loan balance	$ 6,500,000	$ 18,800,000
Weighted average borrowing rate	2.50%	2.30%	2.50%
Revolving Line of Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 80,000,000		$ 80,000,000
Description of variable rate basis			One-month London Interbank offered rate or LIBOR, plus an applicable margin, ranging from 210 to 310 basis points
Credit facility, expiration date			Jan. 31, 2017
LIBOR [Member]
Line of Credit Facility [Line Items]
Credit facility, outstanding balance	$ 0		$ 0
Minimum [Member] | LIBOR [Member] | Revolving Line of Credit Facility [Member]
Line of Credit Facility [Line Items]
Basis points			2.10%
Maximum [Member] | LIBOR [Member] | Revolving Line of Credit Facility [Member]
Line of Credit Facility [Line Items]
Basis points			3.10%

Computech Acquisition - Additio

Computech Acquisition - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 01, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Business acquisition net of cash acquired		$ 56,657
Computech, Inc. [Member]
Business Acquisition [Line Items]
Business acquisition stock purchase percentage	100.00%
Business acquisition net of cash acquired	$ 56,700
Business combination estimated consideration	56,700
Business combination cash acquired	3,300
Definite-life intangible assets	19,720
Computech, Inc. [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Definite-life intangible assets	$ 18,600
Definite-lived intangible asset useful life	7 years
Computech, Inc. [Member] | Developed Software [Member]
Business Acquisition [Line Items]
Definite-life intangible assets	$ 1,100
Definite-lived intangible asset useful life	3 years

Computech Acquisition - Schedul

Computech Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Jan. 01, 2015
Business Acquisition [Line Items]
Goodwill	$ 33,878	$ 33,878
Computech, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable and other assets			$ 8,407
Goodwill			33,878
Definite-life intangible assets			19,720
Accrued salary and benefits			(4,112)
Other accrued expenses			(1,236)
Adjusted purchase price			$ 56,657

Dividends - Schedule of Dividen

Dividends - Schedule of Dividends Declared and Paid (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Dividend Declared And Paid [Line Items].
Total Amount	$ 2,020	$ 1,561
February 10, 2015 [Member]
Dividend Declared And Paid [Line Items].
Declaration Date	Feb. 10, 2015
Dividend Per Share	$ 0.12
Record Date	Feb. 25, 2015
Total Amount	$ 1,561
Payment Date	Mar. 13, 2015
February 8, 2016 [Member]
Dividend Declared And Paid [Line Items].
Declaration Date	Feb. 8, 2016
Dividend Per Share	$ 0.15
Record Date	Feb. 26, 2016
Total Amount	$ 2,020
Payment Date	Mar. 18, 2016

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Renegade Technology Systems, Inc. [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Expense incurred under agreement with Renegade Technology Systems, Inc.	$ 298,000	$ 177,000	$ 656,000	$ 525,000
Amount due to related party	$ 103,150	$ 51,137	$ 103,150	$ 51,137

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Oct. 31, 2016	Sep. 30, 2016	Sep. 30, 2016
Restricted Stock [Member]
Subsequent Event [Line Items]
Number of restricted stock granted		0	25,000
Brian J. Clark [Member] | Consulting Services [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Severance benefits to be paid	$ 250,000
Brian J. Clark [Member] | Lump Sum Cash Payment on Annual Base Salary [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Severance benefits to be paid	1,000,000
Brian J. Clark [Member] | Lump Sum Cash Payment on Annual Bonus for 2016 [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Severance benefits to be paid	$ 420,000
Brian J. Clark [Member] | Stock Options [Member] | Employee Severance [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Stock options to be repurchased	390,000
Mr.Paul A. Dillahay [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Amount of one-time signing bonus	$ 325,000
Annual cash bonus	$ 125,000
Mr.Paul A. Dillahay [Member] | Stock Options [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Number of stock options granted	250,000
Vesting period	5 years
Mr.Paul A. Dillahay [Member] | Restricted Stock [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Number of restricted stock granted	100,000
Mr.Paul A. Dillahay [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Share-based Compensation Award, Tranche One [Member]
Subsequent Event [Line Items]
Vesting percentage	33.33%
Mr.Paul A. Dillahay [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Share-based Compensation Award, Tranche Two [Member]
Subsequent Event [Line Items]
Vesting percentage	33.33%
Mr.Paul A. Dillahay [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Share-based Compensation Award, Tranche Three [Member]
Subsequent Event [Line Items]
Vesting percentage	33.33%