Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Apr. 10, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 to the NCI, Inc. (the “Company”) Quarterly Report on Form 10-Q (the “Form 10-Q/A”) amends our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 previously filed on July 29, 2016 (the “Original Filing”). The Company is filing this Form 10-Q/A to restate its unaudited consolidated financial statements, financial data and related disclosures as of and for the three- and six-month periods ended June 30, 2016 and 2015 to give effect to the embezzlement of Company funds by the Company’s former controller, as discussed below, and the reclassification of related cost of revenues and general and administrative expenses to misappropriation loss in connection therewith. | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 9,038,897 | |
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 | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Statement [Abstract] | |||||
Revenue | [1] | $ 81,900 | $ 85,799 | $ 165,555 | $ 166,767 |
Operating expenses: | |||||
Cost of revenue | [1] | 67,682 | 70,898 | 137,376 | 137,889 |
General and administrative expenses | [1] | 6,793 | 6,807 | 12,900 | 13,382 |
Depreciation and amortization | [1] | 1,684 | 1,892 | 3,476 | 3,981 |
Acquisition and integration related expenses | [1] | 192 | 422 | ||
Misappropriation loss | [1] | 1,369 | 714 | 2,909 | 1,379 |
Total operating expenses | [1] | 77,528 | 80,503 | 156,661 | 157,053 |
Operating income | [1] | 4,372 | 5,296 | 8,894 | 9,714 |
Interest expense, net | [1] | 153 | 221 | 343 | 459 |
Income before income taxes | [1] | 4,219 | 5,075 | 8,551 | 9,255 |
Provision for income taxes | [1] | 1,666 | 2,029 | 3,410 | 3,804 |
Net income | [1] | $ 2,553 | $ 3,046 | $ 5,141 | $ 5,451 |
Basic: | |||||
Weighted average shares outstanding | [1] | 13,184 | 13,013 | 13,169 | 12,991 |
Net income per share | [1] | $ 0.19 | $ 0.23 | $ 0.39 | $ 0.42 |
Diluted: | |||||
Weighted average shares outstanding | [1] | 13,858 | 13,603 | 13,847 | 13,604 |
Net income per share | [1] | $ 0.18 | $ 0.22 | $ 0.37 | $ 0.40 |
Cash dividend declared and paid per share | [1] | $ 0.15 | $ 0.12 | ||
[1] | Restated |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | ||
Current assets: | ||||
Cash and cash equivalents | [1] | $ 138 | $ 233 | |
Accounts receivable, net | 54,398 | [1] | 60,044 | |
Prepaid expenses and other current assets | 2,682 | [1] | 3,447 | |
Total current assets | 57,218 | [1] | 63,724 | |
Property and equipment, net | 5,870 | [1] | 6,698 | |
Other assets | 1,523 | [1] | 1,548 | |
Deferred tax assets, net | 38,722 | [1] | 38,789 | |
Intangible assets, net | 17,410 | [1] | 19,231 | |
Goodwill | 33,878 | [1] | 33,878 | |
Total assets | 154,621 | [1] | 163,868 | |
Current liabilities: | ||||
Current portion of long-term debt | [1] | 7,107 | ||
Accounts payable | 12,112 | [1] | 19,693 | |
Accrued salaries and benefits | 16,015 | [1] | 18,977 | |
Deferred revenue | 2,285 | [1] | 2,217 | |
Other accrued expenses | 4,070 | [1] | 3,843 | |
Total current liabilities | 41,589 | [1] | 44,730 | |
Long-term debt | 10,000 | |||
Other long-term liabilities | 2,636 | [1] | 2,578 | |
Total liabilities | 44,225 | [1] | 57,308 | |
Stockholders' equity: | ||||
Additional paid-in capital | 77,283 | [1] | 76,569 | |
Treasury stock at cost-917 shares of Class A common stock as of June 30, 2016 and December 31, 2015 | (8,331) | [1] | (8,331) | |
Retained earnings | 41,170 | [1] | 38,049 | |
Total stockholders' equity | 110,396 | [1] | 106,560 | |
Total liabilities and stockholders' equity | 154,621 | [1] | 163,868 | |
Class A Common Stock [Member] | ||||
Stockholders' equity: | ||||
Common stock | 188 | [1] | 187 | |
Class B Common Stock [Member] | ||||
Stockholders' equity: | ||||
Common stock | $ 86 | [1] | $ 86 | |
[1] | Restated |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | [1] | 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 | 9,921,000 | 9,843,000 | |
Common stock, shares outstanding | 9,004,000 | 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 | |
[1] | Restated |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Cash flows from operating activities: | ||||
Net income | [1] | $ 5,141 | $ 5,451 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | [1] | 3,476 | 3,981 | |
Share-based compensation | 543 | [1] | 696 | |
Deferred income taxes | 67 | [1] | 73 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 5,646 | [1] | 1,254 | |
Prepaid expenses and other assets | 790 | [1] | 2,682 | |
Accounts payable | (7,581) | [1] | 2,386 | |
Accrued expenses and other liabilities | (2,609) | [1] | (2,546) | |
Net cash provided by operating activities | 5,473 | [1] | 13,977 | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (827) | [1] | (849) | |
Cash paid for acquisition, net of cash acquired | (56,657) | |||
Net cash used in investing activities | (827) | [1] | (57,506) | |
Cash flows from financing activities: | ||||
Borrowings under credit facility | 91,636 | [1] | 106,975 | |
Repayments on credit facility | (94,529) | [1] | (87,475) | |
Proceeds from exercise of stock options | 172 | [1] | 217 | |
Repurchase of stock awards | (39) | |||
Dividends paid | (2,020) | [1] | (1,561) | |
Net cash (used in) provided by financing activities | (4,741) | [1] | 18,117 | |
Net change in cash and cash equivalents | (95) | [1] | (25,412) | |
Cash and cash equivalents, beginning of period | 233 | [1] | 25,819 | |
Cash and cash equivalents, end of period | 138 | [1] | 407 | |
Cash paid during the period for: | ||||
Interest | 263 | [1] | 414 | |
Income taxes | $ 3,010 | [1] | $ 2,333 | |
[1] | Restated |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 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 (“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 (“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 June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 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 Recently Issued Accounting Pronouncements On November 20, 2015, the FASB issued ASU 2015-17, non-current 10-Q non-current 2015-17 In February 2016, the FASB issued ASU 2016-02, right-to-use In March 2016, the FASB issued ASU 2016-08, 2014-09, 2016-10, 2014-09. 2014-09 In March 2016, the FASB issued ASU 2016-09, tax-withholding 2016-09 |
Business Overview
Business Overview | 6 Months Ended |
Jun. 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 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 U. S. The Company reports operating results and financial data as one reportable segment. For the three and six months ended June 30, 2016, the Company generated approximately 64% of revenue from the Department of Defense, including agencies within the intelligence community, and approximately 36% of revenue from federal civilian agencies. For the three and six months ended June 30, 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. NCI’s Program Executive Office Soldier (“PEO Soldier”) contract is the Company’s largest revenue-generating contract and accounted for approximately 17% and 10% of revenue for the three months ended June 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 11% and 7% of revenue for the three months ended June 30, 2016 and 2015, respectively. This cost-plus-fixed-fee, 12-month one-year six-month |
Embezzlement and Restatement
Embezzlement and Restatement | 6 Months Ended |
Jun. 30, 2016 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Embezzlement and Restatement | 3. Embezzlement and Restatement In January 2017, the Company identified a misappropriation of Company funds by its former controller. The Audit Committee engaged independent legal counsel and forensic consultants to investigate the fraud. The internal investigation was completed in March 2017, and revealed that the former controller had embezzled $19.4 million through a circumvention of controls, which included transfers from the payroll account to his personal account, creating fictitious invoices, and altering bank account statements to conceal the misappropriations. The Company believes that the former controller acted alone and found no evidence that any other NCI employee was aware of, or colluded in, the embezzlement of Company funds or that there was any unlawful activity apart from that associated with the former controller’s embezzlement of Company funds. The amounts embezzled were primarily classified as expenses and were included as fringe benefits costs in costs of revenue and selling, general and administrative expenses and was originally allocated to contracts as allowable costs. After discovery of the embezzlement these costs were restated as misappropriation loss, which is an unallowable cost. The Company had sufficient allowable, but previously unbilled costs allocated to its contracts in fiscal years 2010 through 2015 to offset the unallowable costs related to the embezzlement, such that there was no material change in revenue recognized on its cost reimbursable contracts during such periods. During 2016, a portion of the amounts embezzled were recorded on the balance sheet. Accordingly, the Company has restated the Condensed Consolidated Statements of Income for the three-and six-month periods ended June 30, 2016 and 2015, Condensed Consolidated Statements of Cash Flows for the six-month period ended June 30, 2016 and the Condensed Consolidated Balance Sheet as of June 30, 2016, as follows: Three Months Ended, Three Months Ended, Six Months Ended, Six Months Ended, June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 As Reported As Restated As Reported As Restated As Reported As Restated As Reported As Restated Statements of Income Costs of revenue 67,921 67,682 71,553 70,898 137,908 137,376 139,155 137,889 General and administrative expenses 6,812 6,793 6,866 6,807 12,941 12,900 13,495 13,382 Misappropriation loss — 1,369 — 714 — 2,909 — 1,379 Provision for income taxes 2,100 1,666 4,324 3,410 Net income 3,230 2,553 6,563 5,141 Earnings per share Basic EPS $ 0.25 $ 0.19 $ 0.50 $ 0.39 Diluted EPS $ 0.23 $ 0.18 $ 0.47 $ 0.37 Statements of Cash Flows Net income 6,563 5,141 Prepaid expenses and other assets (1,462 ) 790 Accrued expenses and other liabilities (1,779 ) (2,609 ) As of June 30, 2016 As Reported As Restated Balance Sheet Prepaid expenses and other current assets 4,932 2,682 Accrued salaries and benefits 15,928 16,015 Other accrued expenses 4,985 4,070 Retained Earnings 42,592 41,170 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings Per Share Basic earnings per share exclude dilution and are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Diluted earnings per share include the incremental effect of stock options calculated using the treasury stock method. Shares that are anti-dilutive are not included in the computation of diluted earnings per share. For the three months ended June 30, 2016 and 2015, approximately 8,000 and 131,000 shares, respectively, were not included in the computation of diluted earnings per share, because to do so would have been anti-dilutive. For the six months ended June 30, 2016 and 2015, approximately 4,000 and 115,000 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 six months ended June 30, 2016 and 2015. Three months ended June 30, Six months ended June 30, 2016 (Restated) 2015 2016 (Restated) 2015 Net income $ 2,553 $ 3,046 $ 5,141 $ 5,451 Weighted average number of basic shares outstanding during the period 13,184 13,013 13,169 12,991 Dilutive effect of stock options and restricted stock after application of treasury stock method 674 591 678 614 Weighted average number of diluted shares outstanding during the period 13,858 13,603 13,847 13,604 Basic earnings per share $ 0.19 $ 0.23 $ 0.39 $ 0.42 Diluted earnings per share $ 0.18 $ 0.22 $ 0.37 $ 0.40 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | 5. Accounts Receivable Accounts receivable consists of billed and unbilled amounts. The following table details accounts receivable at the end of each period: As of June 30, 2016 December 31, 2015 Billed receivables $ 21,499 $ 23,621 Unbilled receivables: Amounts billable at end of period 26,480 27,185 Other 7,161 9,980 Total unbilled receivables 33,641 37,165 Total accounts receivable 55,140 60,786 Less: Allowance for doubtful accounts 742 742 Total accounts receivable, net $ 54,398 $ 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 | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment The following table details property and equipment at the end of each period: As of June 30, 2016 December 31, 2015 Property and equipment Furniture and equipment $ 24,502 $ 26,573 Leasehold improvements 9,388 9,323 Real property 549 549 34,519 36,444 Less: Accumulated depreciation and amortization 28,649 29,746 Property and equipment, net $ 5,870 $ 6,698 Depreciation and amortization expense for the three months ended June 30, 2016 and 2015 was $0.8 million. Depreciation expense for the six months ended June 30, 2016 and 2015 was $1.7 million and $1.8 million, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets The following table details intangible assets at the end of each period: As of June 30, 2016 December 31, 2015 Contract and customer relationships $ 39,594 $ 39,594 Developed software 1,113 1,113 Less: Accumulated amortization (23,297 ) (21,476 ) Intangible assets, net $ 17,410 $ 19,231 Amortization expense of intangible assets for the three months ended June 30, 2016 and 2015 was $0.9 million and $1.1 million, respectively. Amortization expense of intangible assets for the six months ended June 30, 2016 and 2015 was $1.8 million and $2.2 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 six months) $ 1,823 2017 3,632 2018 3,149 2019 3,049 2020 3,027 Thereafter 2,730 $ 17,410 |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | 8. Share-Based Payments During the three and six months ended June 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 at the date of grant. During the three months ended June 30, 2016, no stock options were exercised. During the six months ended June 30, 2016, 38,332 stock options were exercised at a weighted-average exercise price of $4.48. As of June 30, 2016, there were 1,534,500 stock options outstanding. During the three months ended June 30, 2016, 20,000 restricted shares were granted and 20,000 restricted shares were cancelled. During the six months ended June 30, 2016, 25,000 restricted shares were granted and 20,000 restricted shares were cancelled. As of June 30, 2016, there were 320,000 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 six months ended June 30, 2016 and 2015: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of revenue $ 36 $ 59 $ 115 $ 122 General and administrative 178 267 428 574 $ 214 $ 326 $ 543 $ 696 As of June 30, 2016, there was approximately $3.6 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 $0.5 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 | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 9. 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 one-month 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 June 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 six months ended June 30, 2016. At June 30, 2016, $16.7 million was remaining under the board of directors’ authorization for share repurchases. During the second quarter of 2016, NCI had a weighted average outstanding loan balance of $16.4 million which accrued interest at a weighted average borrowing rate of 2.5%. During the second quarter of 2015, NCI had a weighted average outstanding loan balance of $24.7 million which accrued interest at a weighted average borrowing rate of 2.3%. As of June 30, 2016, the outstanding balance under the credit facility was $7.1 million and interest accrued at a rate of one-month |
Computech Acquisition
Computech Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Computech Acquisition | 10. 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 is recognized as goodwill. Allocation of Purchase Price NCI 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 All goodwill and intangible asset amortization related to the acquisition of Computech is expected to be deductible for income tax purposes. |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Dividends | 11. Dividends Our board of directors declared and the Company paid the following dividends during the periods presented: Declaration Date Dividend Per Share 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 | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. 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. For the three months ended June 30, 2016 and 2015, the expense incurred under this agreement was approximately $201,000 and $182,000, respectively. For the six months ended June 30, 2016 and 2015, the expense incurred under this agreement was approximately $358,000 and $348,000, respectively. As of June 30, 2016 and 2015, outstanding amounts due to Renegade Technology Systems, Inc. under this agreement were $65,566 and $60,378, respectively. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 13. Contingencies Government Audits Payments to the Company on U.S. Federal Government contracts are subject to adjustment upon audit by various agencies of the U.S. Federal Government. Audits of costs and the related payments have been performed by the various agencies through 2007 for NCI Information Systems, Inc., our primary corporate vehicle for Government contracting. In the opinion of management, the final determination of costs and related payments for unaudited years will not have a material effect on the Company’s financial position, results of operations, or liquidity. Litigation Civil Suit Against Former Controller As previously disclosed on January 23, 2017, the Company commenced an internal investigation upon discovering that its former controller, Jon Frank, had been embezzling money from the Company. Upon completion of the internal investigation, the Company determined that the actual amount of the embezzlement by Mr. Frank during the period from January 2010 through 2017 was approximately $19.4 million. The Company believes that Mr. Frank acted alone and found no evidence that any other NCI employee was aware of or colluded in the embezzlement of Company funds and found no evidence of any unlawful activity apart from that associated with Mr. Frank’s embezzlement of Company funds. On January 23, 2017, we filed a lawsuit against Mr. Frank in the Circuit Court of Fairfax County in the State of Virginia to recover the embezzled funds. On February 2, 2017, the Honorable Chief Judge White entered an Order for Preliminary Injunction and Asset Freeze (the “Preliminary Injunction”) against Mr. Frank. Among other things, the Preliminary Injunction placed an immediate freeze on all monies and assets of Mr. Frank and ordered Mr. Frank to prepare and deliver to the Company an accounting of his personal assets. In addition, pursuant to the Preliminary Injunction, Mr. Frank agreed to cooperate with the Company to identify, recover and return to the Company all assets that he obtained wrongfully or acquired with wrongfully-obtained funds. Government Agency Investigations In connection with the discovery of Mr. Frank’s embezzlement of money from the Company, we self-reported such matter to the U.S. Securities and Exchange Commission (“SEC”) and the civil and criminal divisions of the U.S. Department of Justice (“DOJ”). By letter to the Company dated February 1, 2017, the DOJ has identified the Company as a possible victim of Mr. Frank’s conduct. On February 8, 2017, the SEC commenced a formal investigation and has served the Company with a subpoena requesting certain documents and information relevant to the embezzlement of Company funds by Mr. Frank. The Company is cooperating fully with the DOJ and the SEC in connection with their respective investigations, which are ongoing. The United States Attorney’s Office for the Eastern District of Virginia (“USAO EDVA”) has opened a civil fraud investigation into the impact of Mr. Frank’s conduct on the Company’s government contracts. The Company is cooperating fully with the USAO EDVA and the Inspectors General of relevant government agencies in connection with this investigation, which is ongoing. At this time, we do not have an estimate of the financial impact on the Company, if any, of the investigation being conducted by the USAO EDVA. Other Legal Proceedings From time to time, we are involved in legal proceedings arising in the ordinary course of business. At this time, the probability is remote that the outcome of any such ordinary course litigation matters currently pending will have a material adverse effect on our financial condition and results of operations. Misappropriation loss—Costs and Recovery As discussed above, the Company initiated civil legal proceedings against our former controller seeking to recover assets acquired by him with funds wrongfully obtained by him through his embezzlement of Company funds and that litigation is ongoing. The court has frozen all of our former controller’s assets. The Company carries insurance that could cover up to $5 million of the misappropriation loss. The timing and amount of final recoveries, net of expenses of recovery, is uncertain. The Company has not yet recognized an estimated value of the potential recovery due to the limited amount of information available to it at this time. The Company estimates that it incurred approximately $5 million in costs during the first quarter of 2017 related to the embezzlement, including legal, auditing and forensic accounting fees. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 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, non-current 10-Q non-current 2015-17 In February 2016, the FASB issued ASU 2016-02, right-to-use In March 2016, the FASB issued ASU 2016-08, 2014-09, 2016-10, 2014-09. 2014-09 In March 2016, the FASB issued ASU 2016-09, tax-withholding 2016-09 |
Embezzlement and Restatement (T
Embezzlement and Restatement (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Restatement of Condensed Consolidated Statements of Income, Cash Flows and Balance Sheet | Accordingly, the Company has restated the Condensed Consolidated Statements of Income for the three-and six-month periods ended June 30, 2016 and 2015, Condensed Consolidated Statements of Cash Flows for the six-month period ended June 30, 2016 and the Condensed Consolidated Balance Sheet as of June 30, 2016, as follows: Three Months Ended, Three Months Ended, Six Months Ended, Six Months Ended, June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 As Reported As Restated As Reported As Restated As Reported As Restated As Reported As Restated Statements of Income Costs of revenue 67,921 67,682 71,553 70,898 137,908 137,376 139,155 137,889 General and administrative expenses 6,812 6,793 6,866 6,807 12,941 12,900 13,495 13,382 Misappropriation loss — 1,369 — 714 — 2,909 — 1,379 Provision for income taxes 2,100 1,666 4,324 3,410 Net income 3,230 2,553 6,563 5,141 Earnings per share Basic EPS $ 0.25 $ 0.19 $ 0.50 $ 0.39 Diluted EPS $ 0.23 $ 0.18 $ 0.47 $ 0.37 Statements of Cash Flows Net income 6,563 5,141 Prepaid expenses and other assets (1,462 ) 790 Accrued expenses and other liabilities (1,779 ) (2,609 ) As of June 30, 2016 As Reported As Restated Balance Sheet Prepaid expenses and other current assets 4,932 2,682 Accrued salaries and benefits 15,928 16,015 Other accrued expenses 4,985 4,070 Retained Earnings 42,592 41,170 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 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 six months ended June 30, 2016 and 2015. Three months ended June 30, Six months ended June 30, 2016 (Restated) 2015 2016 (Restated) 2015 Net income $ 2,553 $ 3,046 $ 5,141 $ 5,451 Weighted average number of basic shares outstanding during the period 13,184 13,013 13,169 12,991 Dilutive effect of stock options and restricted stock after application of treasury stock method 674 591 678 614 Weighted average number of diluted shares outstanding during the period 13,858 13,603 13,847 13,604 Basic earnings per share $ 0.19 $ 0.23 $ 0.39 $ 0.42 Diluted earnings per share $ 0.18 $ 0.22 $ 0.37 $ 0.40 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | The following table details accounts receivable at the end of each period: As of June 30, 2016 December 31, 2015 Billed receivables $ 21,499 $ 23,621 Unbilled receivables: Amounts billable at end of period 26,480 27,185 Other 7,161 9,980 Total unbilled receivables 33,641 37,165 Total accounts receivable 55,140 60,786 Less: Allowance for doubtful accounts 742 742 Total accounts receivable, net $ 54,398 $ 60,044 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 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 June 30, 2016 December 31, 2015 Property and equipment Furniture and equipment $ 24,502 $ 26,573 Leasehold improvements 9,388 9,323 Real property 549 549 34,519 36,444 Less: Accumulated depreciation and amortization 28,649 29,746 Property and equipment, net $ 5,870 $ 6,698 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 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 June 30, 2016 December 31, 2015 Contract and customer relationships $ 39,594 $ 39,594 Developed software 1,113 1,113 Less: Accumulated amortization (23,297 ) (21,476 ) Intangible assets, net $ 17,410 $ 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 six months) $ 1,823 2017 3,632 2018 3,149 2019 3,049 2020 3,027 Thereafter 2,730 $ 17,410 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 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 six months ended June 30, 2016 and 2015: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of revenue $ 36 $ 59 $ 115 $ 122 General and administrative 178 267 428 574 $ 214 $ 326 $ 543 $ 696 |
Computech Acquisition (Tables)
Computech Acquisition (Tables) | 6 Months Ended |
Jun. 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) | 6 Months Ended |
Jun. 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 Per Share 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 | Jun. 30, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Non-current deferred taxes, net | $ 38,722 | [1] | $ 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) | (4,000) | |
Non-current deferred taxes, net | $ 4,000 | $ 4,000 | |
[1] | Restated |
Business Overview - Additional
Business Overview - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016EmployeeLocation | Jun. 30, 2015 | Jun. 30, 2016EmployeeLocationSegmentItem | Jun. 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 | 11.00% | 7.00% | ||
Sales [Member] | Government Contracts Concentration Risk [Member] | Program Executive Office Soldier [Member] | ||||
Schedule Of Description Of Business [Line Items] | ||||
Concentration risk, percentage | 17.00% | 10.00% | ||
Defense and Intelligence Agencies [Member] | Sales [Member] | Customer Concentration Risk [Member] | ||||
Schedule Of Description Of Business [Line Items] | ||||
Concentration risk, percentage | 64.00% | 60.00% | 64.00% | 60.00% |
Federal Civilian Agencies [Member] | Sales [Member] | Customer Concentration Risk [Member] | ||||
Schedule Of Description Of Business [Line Items] | ||||
Concentration risk, percentage | 36.00% | 40.00% | 36.00% | 40.00% |
Minimum [Member] | ||||
Schedule Of Description Of Business [Line Items] | ||||
Number of locations | Location | 100 | 100 |
Embezzlement and Restatement -
Embezzlement and Restatement - Additional Information (Detail) - USD ($) $ in Millions | Jan. 23, 2017 | Mar. 31, 2017 |
Embezzlement by Former Controller [Member] | Subsequent Event [Member] | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Embezzled amount | $ 19.4 | $ 19.4 |
Embezzlement and Restatement 31
Embezzlement and Restatement - Restatement of Condensed Consolidated Statements of Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Costs of revenue | [1] | $ 67,682 | $ 70,898 | $ 137,376 | $ 137,889 |
General and administrative expenses | [1] | 6,793 | 6,807 | 12,900 | 13,382 |
Misappropriation loss | [1] | 1,369 | 714 | 2,909 | 1,379 |
Provision for income taxes | [1] | 1,666 | 2,029 | 3,410 | 3,804 |
Net income | [1] | $ 2,553 | $ 3,046 | $ 5,141 | $ 5,451 |
Earnings per share | |||||
Basic EPS | [1] | $ 0.19 | $ 0.23 | $ 0.39 | $ 0.42 |
Diluted EPS | [1] | $ 0.18 | $ 0.22 | $ 0.37 | $ 0.40 |
As Reported [Member] | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Costs of revenue | $ 67,921 | $ 71,553 | $ 137,908 | $ 139,155 | |
General and administrative expenses | 6,812 | $ 6,866 | 12,941 | $ 13,495 | |
Provision for income taxes | 2,100 | 4,324 | |||
Net income | $ 3,230 | $ 6,563 | |||
Earnings per share | |||||
Basic EPS | $ 0.25 | $ 0.50 | |||
Diluted EPS | $ 0.23 | $ 0.47 | |||
[1] | Restated |
Embezzlement and Restatement 32
Embezzlement and Restatement - Restatement of Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Net income | [1] | $ 2,553 | $ 3,046 | $ 5,141 | $ 5,451 | |
Prepaid expenses and other assets | 790 | [1] | 2,682 | |||
Accrued expenses and other liabilities | (2,609) | [1] | $ (2,546) | |||
As Reported [Member] | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Net income | $ 3,230 | 6,563 | ||||
Prepaid expenses and other assets | (1,462) | |||||
Accrued expenses and other liabilities | $ (1,779) | |||||
[1] | Restated |
Embezzlement and Restatement 33
Embezzlement and Restatement - Restatement of Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Prepaid expenses and other current assets | $ 2,682 | [1] | $ 3,447 |
Accrued salaries and benefits | 16,015 | [1] | 18,977 |
Other accrued expenses | 4,070 | [1] | 3,843 |
Retained earnings | 41,170 | [1] | $ 38,049 |
As Reported [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Prepaid expenses and other current assets | 4,932 | ||
Accrued salaries and benefits | 15,928 | ||
Other accrued expenses | 4,985 | ||
Retained earnings | $ 42,592 | ||
[1] | Restated |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 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 | 8,000 | 131,000 | 4,000 | 115,000 |
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 | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||||
Earnings Per Share [Abstract] | |||||||
Net income | [1] | $ 2,553 | $ 3,046 | $ 5,141 | $ 5,451 | ||
Weighted average number of basic shares outstanding during the period | [1] | 13,184 | 13,013 | 13,169 | 12,991 | ||
Dilutive effect of stock options and restricted stock after application of treasury stock method | 674 | [1] | 591 | 678 | [1] | 614 | |
Weighted average number of diluted shares outstanding during the period | [1] | 13,858 | 13,603 | 13,847 | 13,604 | ||
Basic earnings per share | [1] | $ 0.19 | $ 0.23 | $ 0.39 | $ 0.42 | ||
Diluted earnings per share | [1] | $ 0.18 | $ 0.22 | $ 0.37 | $ 0.40 | ||
[1] | Restated |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Billed receivables | $ 21,499 | $ 23,621 | |
Unbilled receivables: | |||
Amounts billable at end of period | 26,480 | 27,185 | |
Other | 7,161 | 9,980 | |
Total unbilled receivables | 33,641 | 37,165 | |
Total accounts receivable | 55,140 | 60,786 | |
Less: Allowance for doubtful accounts | 742 | 742 | |
Total accounts receivable, net | $ 54,398 | [1] | $ 60,044 |
[1] | Restated |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) | 6 Months Ended |
Jun. 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 | Jun. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 34,519 | $ 36,444 | |
Less: Accumulated depreciation and amortization | 28,649 | 29,746 | |
Property and equipment, net | 5,870 | [1] | 6,698 |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 24,502 | 26,573 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,388 | 9,323 | |
Real Property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 549 | $ 549 | |
[1] | Restated |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 0.8 | $ 0.8 | $ 1.7 | $ 1.8 |
Intangible Assets - Details of
Intangible Assets - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated amortization | $ (23,297) | $ (21,476) | |
Intangible assets, net | 17,410 | [1] | 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 | |
[1] | Restated |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 0.9 | $ 1.1 | $ 1.8 | $ 2.2 |
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 | Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2016 (remaining six months) | $ 1,823 | ||
2,017 | 3,632 | ||
2,018 | 3,149 | ||
2,019 | 3,049 | ||
2,020 | 3,027 | ||
Thereafter | 2,730 | ||
Intangible assets, net | $ 17,410 | [1] | $ 19,231 |
[1] | Restated |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | shares | 25,000 | 25,000 |
Weighted average exercise price of stock option | $ / shares | $ 13.29 | $ 4.48 |
Stock options exercised | shares | 0 | 38,332 |
Stock options outstanding | shares | 1,534,500 | 1,534,500 |
Restricted stock outstanding | shares | 320,000 | 320,000 |
Total unrecognized compensation cost related to unvested stock compensation | $ | $ 3.6 | $ 3.6 |
Amortization of cost of unvested stock compensation arrangements, 2016 | $ | 0.5 | |
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 | 20,000 | 25,000 |
Restricted stock cancelled | shares | 20,000 | 20,000 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock compensation | $ 214 | $ 326 | $ 543 | $ 696 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock compensation | 36 | 59 | 115 | 122 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock compensation | $ 178 | $ 267 | $ 428 | $ 574 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Senior Credit Facility [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 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 | $ 16,400,000 | $ 24,700,000 | |
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 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] | |||
Basis points | 2.10% | ||
Credit facility, outstanding balance | $ 7,100,000 | $ 7,100,000 | |
Interest rate at period end | 2.50% | 2.50% | |
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 | Jun. 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 | Jun. 30, 2016 | [1] | 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 | |||
[1] | Restated |
Dividends - Schedule of Dividen
Dividends - Schedule of Dividends Declared and Paid (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Dividend Declared And Paid [Line Items]. | |||
Total Amount | $ 2,020 | [1] | $ 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 | ||
[1] | Restated |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Renegade Technology Systems, Inc. [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Purchases services from Net Commerce Corporation | $ 201,000 | $ 182,000 | $ 358,000 | $ 348,000 |
Amount due to related party | $ 65,566 | $ 60,378 | $ 65,566 | $ 60,378 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - Subsequent Event [Member] - USD ($) | Jan. 23, 2017 | Mar. 31, 2017 | Mar. 31, 2017 |
Loss Contingencies [Line Items] | |||
Estimated costs related to embezzlement | $ 5,000,000 | ||
Embezzlement by Former Controller [Member] | |||
Loss Contingencies [Line Items] | |||
Embezzled amount | $ 19,400,000 | $ 19,400,000 | |
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Insurance coverage for misappropriation loss | $ 5,000,000 |