Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | Information Services Group Inc. | |
Entity Central Index Key | 1371489 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,162,822 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $17,210 | $27,662 |
Accounts receivable, net of allowance of $222 and $234, respectively | 42,604 | 41,148 |
Deferred tax asset | 1,055 | 1,138 |
Prepaid expense and other current assets | 2,621 | 2,130 |
Total current assets | 63,490 | 72,078 |
Restricted cash | 325 | 364 |
Furniture, fixtures and equipment, net | 3,260 | 3,478 |
Goodwill | 36,302 | 36,400 |
Intangible assets, net | 16,971 | 18,335 |
Other assets | 4,595 | 3,514 |
Total assets | 124,943 | 134,169 |
Current liabilities | ||
Accounts payable | 6,266 | 7,312 |
Current maturities of long-term debt | 4,219 | 3,938 |
Deferred revenue | 4,814 | 4,898 |
Accrued expenses | 15,375 | 21,116 |
Total current liabilities | 30,674 | 37,264 |
Long-term debt, net of current maturities | 48,309 | 49,434 |
Other liabilities | 4,848 | 6,007 |
Total liabilities | 83,831 | 92,705 |
Commitments and contingencies (Note 6) | ||
Redeemable noncontrolling interest | 820 | 747 |
Stockholders' equity | ||
Preferred stock, $.001 par value; 10,000 shares authorized; none issued | ||
Common stock, $.001 par value, 100,000 shares authorized; 37,943 shares issued and 37,093 shares outstanding at March 31, 2015 and 37,943 shares issued and 36,762 outstanding at December 31, 2014 | 38 | 38 |
Additional paid-in-capital | 202,948 | 204,525 |
Treasury stock (850 and 1,181 common shares, respectively, at cost) | -3,486 | -5,244 |
Accumulated other comprehensive loss | -6,021 | -4,582 |
Accumulated deficit | -153,187 | -154,020 |
Total stockholders' equity | 40,292 | 40,717 |
Total liabilities and stockholders' equity | $124,943 | $134,169 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $222 | $234 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 37,943 | 37,943 |
Common stock, shares outstanding | 37,093 | 36,762 |
Treasury stock, shares | 850 | 1,181 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Revenues | $50,539 | $48,241 |
Operating expenses | ||
Direct costs and expenses for advisors | 30,438 | 29,812 |
Selling, general and administrative | 16,410 | 15,655 |
Depreciation and amortization | 1,718 | 1,738 |
Operating income | 1,973 | 1,036 |
Interest income | 2 | 2 |
Interest expense | -498 | -518 |
Foreign currency transaction gain (loss) | 374 | -14 |
Income before taxes | 1,851 | 506 |
Income tax provision | 944 | 418 |
Net income | 907 | 88 |
Net income attributable to noncontrolling interest | 54 | 25 |
Net income attributable to ISG | 853 | 63 |
Weighted average shares outstanding: | ||
Basic (in shares) | 37,032 | 37,383 |
Diluted (in shares) | 38,490 | 38,861 |
Earnings per share attributable to ISG: | ||
Basic (in dollars per share) | $0.02 | $0 |
Diluted (in dollars per share) | $0.02 | $0 |
Comprehensive income: | ||
Net income | 907 | 88 |
Foreign currency translation, net of tax benefit of $945 and $65 | -1,439 | 103 |
Comprehensive (loss) income | -532 | 191 |
Comprehensive income attributable to noncontrolling interest | 54 | 25 |
Comprehensive (loss) income attributable to ISG | ($586) | $166 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Parent | $945 | $65 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $907 | $88 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation expense | 439 | 440 |
Amortization of intangibles | 1,279 | 1,298 |
Tax benefit from stock issuances | -193 | -415 |
Amortization of deferred financing costs | 38 | 38 |
Compensation costs related to stock-based awards | 902 | 601 |
Changes in accounts receivable allowance | 9 | -81 |
Deferred tax provision | 173 | 368 |
Loss on disposal of furniture, fixtures and equipment | 1 | 5 |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable | -1,432 | -5,579 |
Prepaid expense and other current assets | -1,610 | -945 |
Accounts payable | -1,046 | 1,024 |
Deferred revenue | -84 | 564 |
Accrued liabilities | -1,579 | -4,222 |
Net cash used in operating activities | -2,196 | -6,816 |
Cash flows from investing activities | ||
Acquisitions net of cash acquired | 37 | |
Restricted cash | 39 | -152 |
Purchase of furniture, fixtures and equipment | -290 | -693 |
Net cash used in investing activities | -251 | -808 |
Cash flows from financing activities | ||
Principal payments on borrowings | -844 | -844 |
Proceeds from issuance of ESPP shares | 125 | 109 |
dividend paid | -5,189 | |
Tax benefit from stock issuances | 193 | 415 |
Equity securities repurchased | -978 | -1,012 |
Net cash used in financing activities | -6,693 | -1,332 |
Effect of exchange rate changes on cash | -1,312 | 56 |
Net decrease in cash and cash equivalents | -10,452 | -8,900 |
Cash and cash equivalents, beginning of period | 27,662 | 35,085 |
Cash and cash equivalents, end of period | 17,210 | 26,185 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Issuance of treasury stock for vested restricted stock awards | $2,571 | $1,320 |
DESCRIPTION_OF_ORGANIZATION_AN
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 3 Months Ended |
Mar. 31, 2015 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
Information Services Group, Inc. (the “Company”, or “ISG”) was founded in 2006 with the strategic vision to become a high-growth, leading provider of information-based advisory services. In 2007, we consummated our initial public offering and completed the acquisition of TPI Advisory Services Americas, Inc. (“TPI”). | |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | |
NOTE 2—BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements as of March 31, 2015 and for the three months ended March 31, 2015 and 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are considered necessary for a fair statement of the financial position of the Company as of March 31, 2015 and the results of operations and cash flows for the three months ended March 31, 2015 and 2014. The condensed consolidated balance sheet as of December 31, 2014 has been derived from the Company’s audited consolidated financial statements. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended December 31, 2014, which are included in the Company’s 2014 Form 10-K filed with the SEC. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the proportional performance method of accounting affect the amounts of revenues, expenses, unbilled receivables and deferred revenue. Numerous internal and external factors can affect estimates. Estimates are also used for but not limited to: allowance for doubtful accounts, useful lives of furniture, fixtures and equipment, depreciation expense, fair value assumptions in business acquisitions and analyzing goodwill and intangible asset impairments, income taxes and deferred tax asset valuation, and the valuation of stock based compensation. | ||||||||||||||
Fair Value | ||||||||||||||
The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, long-term debt, other current liabilities, and accrued interest approximate fair value. | ||||||||||||||
Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: | ||||||||||||||
· | Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; | |||||||||||||
· | Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and | |||||||||||||
· | Level 3 measurements include those that are unobservable and of a highly subjective measure. | |||||||||||||
The Company held investments in cash equivalent money market funds of $20,000 at March 31, 2015 and December 31, 2014. The Company considers the fair value of cash equivalent money market funds to be classified within Level 1 of the fair value hierarchy. | ||||||||||||||
The following table presents the carrying amounts and estimated fair values of our other financial instruments at March 31, 2015 and December 31, 2014: | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||
Liabilities: | ||||||||||||||
Contingent consideration (1) | $ | 4,756 | $ | 4,756 | $ | 4,810 | $ | 4,810 | ||||||
Long-term debt , including current portion | 52,528 | 52,514 | 53,371 | 53,412 | ||||||||||
$ | 57,284 | $ | 57,270 | $ | 58,181 | $ | 58,222 | |||||||
-1 | The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” | |||||||||||||
The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company’s incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.67% to 2.76%. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions. | ||||||||||||||
The Company’s contingent consideration liability was $4.8 million at March 31, 2015 and December 31, 2014, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and thus the likelihood of the Company making payments. These cash outflow projections have been discounted using a rate ranging from 2.3% to 13.5%, which is the after-tax cost of debt financing for market participants. | ||||||||||||||
The following table represents the change in the contingent consideration liability during the three months ended March 31, 2015 and 2014: | ||||||||||||||
Three months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Beginning Balance | $ | 4,825 | $ | 4,085 | ||||||||||
Accretion of contingent consideration | 47 | 5 | ||||||||||||
Impact of currency translation | (116 | ) | — | |||||||||||
Ending Balance | $ | 4,756 | $ | 4,090 | ||||||||||
Dividend | ||||||||||||||
On December 2, 2014 the Board of Directors authorized a special dividend of $0.14 per share on the Company’s issued and outstanding shares of common stock. This cash dividend of $5.2 million was paid on January 28, 2015 to shareholders of record as of January 15, 2015. Prior to this special dividend we had not paid any dividends on our common stock. | ||||||||||||||
Recently Issued Accounting Pronouncements | ||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance regarding reporting discontinued operations and disclosures of disposals of components of an entity, which raises the threshold for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The standard is applied prospectively and is effective in 2015 with early adoption permitted. The Company does not believe the adoption of this guidance will impact its consolidated financial statements or disclosures. | ||||||||||||||
In May 2014, the FASB issued new accounting guidance outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||||||||||||||
In August 2014, the FASB issued guidance on management’s responsibility to assess an entity’s ability to continue as a going concern and provide related footnote disclosures in certain circumstances. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2016. The Company does not believe the adoption of this guidance will impact its consolidated financial statements or disclosures. | ||||||||||||||
In April 2015, the FASB issued guidance require the presentation of debt issuance costs in financial statements as a direct reduction of related debt liabilities with amortization of debt issuance costs reported as interest expense. Under current U.S. GAAP standards, debt issuance costs are reported as deferred charges (i.e., as an asset). This guidance is effective for annual periods, and interim periods within those fiscal years, beginning after December 15, 2015 and is to be applied retrospectively upon adoption. Early adoption is permitted, including adoption in an interim period for financial statements that have not been previously issued. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. At March 31, 2015, the Company had debt issuance costs of $0.5 million. | ||||||||||||||
In April 2015, the FASB issued an accounting standards update with new guidance on whether a cloud computing arrangement includes a software license and the accounting for such an arrangement. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the agreement should be accounted for as a service contract. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||||||||||||||
NET_INCOME_PER_COMMON_SHARE
NET INCOME PER COMMON SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET INCOME PER COMMON SHARE | ||||||||
NET INCOME PER COMMON SHARE | ||||||||
NOTE 4—NET INCOME PER COMMON SHARE | ||||||||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. The 250,000 contingently issuable shares related to the acquisition of STA Consulting as well as 50,000 contingently issuable shares related to the acquisition of CCI were excluded from basic and diluted earnings per share since the contingencies have not been met as of the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. At March 31, 2015, the effect of 0.1 million stock appreciation rights (“SARs”) have not been considered in the diluted earnings per share, since the market price of the stock was less than the exercise price during the period in the computation. In addition, the 0.1 million restricted shares have not been considered in the diluted earnings per share calculation for the three months ended March 31, 2015, as the effect would be anti-dilutive. At March 31, 2014, the effect of 0.1 million SARs have not been considered in the diluted earnings per share, since the market price of the stock was less than the exercise price during the period in the computation. | ||||||||
The following tables set forth the computation of basic and diluted earnings per share: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic: | ||||||||
Net income attributable to ISG | $ | 853 | 63 | |||||
Weighted average common shares | 37,032 | 37,383 | ||||||
Earnings per share attributable to ISG | $ | 0.02 | $ | 0.00 | ||||
Diluted: | ||||||||
Net income attributable to ISG | $ | 853 | $ | 63 | ||||
Interest expense of convertible debt, net of tax | 16 | 6 | ||||||
Net income , attributable to ISG, as adjusted | $ | 869 | $ | 69 | ||||
Basic weighted average common shares | 37,032 | 37,383 | ||||||
Potential common shares | 1,458 | 1,478 | ||||||
Diluted weighted average common shares | 38,490 | 38,861 | ||||||
Diluted earnings per share attributable to ISG | $ | 0.02 | $ | 0.00 | ||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES | |
INCOME TAXES | |
NOTE 5—INCOME TAXES | |
The Company’s effective tax rate for the three months ended March 31, 2015 is 51.0% compared to 82.6% for the three months ended March 31, 2014. The difference is primarily due to changes in pre-tax income by jurisdiction for the three months ended March 31, 2015 compared to the three months ended March 31, 2014. The Company’s operations resulted in a pre-tax income of $1.9 million and a tax provision of $0.9 million, yielding a 51.0% effective tax rate for the three months ended March 31, 2015. | |
As of March 31, 2015, the Company had total unrecognized tax benefits of approximately $2.3 million of which approximately $2.3 million of this benefit would impact the Company’s effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its consolidated statement of operations. As of March 31, 2015, the Company’s accrual of interest and penalties was $0.6 million. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 6—COMMITMENTS AND CONTINGENCIES | |
The Company is subject to contingencies which arise through the ordinary course of business. All liabilities of which management is aware are properly reflected in the financial statements at March 31, 2015 and December 31, 2014. | |
STA Consulting Contingent Consideration | |
As of March 31, 2015, the Company has recorded a liability of $3.0 million representing the estimated fair value of contingent consideration related to the acquisition of STA Consulting and is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $1.7 million in April of 2015 related to 2014 performance and the remaining contingent liability is expected to be paid in the first quarter 2016. | |
CCI Contingent Consideration | |
As of March 31, 2015, we have recorded a liability of $1.8 million representing the estimated fair value of contingent consideration related to the acquisition of CCI Consulting, of which $0.6 million is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid AU$0.8 million in April of 2015 related to 2014 performance and the remaining contingent liability is expected to be paid in the second quarter of 2016 and second quarter of 2017. | |
SEGMENT_AND_GEOGRAPHICAL_INFOR
SEGMENT AND GEOGRAPHICAL INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | ||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | ||||||||
NOTE 7—SEGMENT AND GEOGRAPHICAL INFORMATION | ||||||||
The Company operates in one segment consisting primarily of fact-based sourcing advisory services. The Company operates principally in the Americas, Europe and Asia Pacific. | ||||||||
Geographical revenue information for the segment is as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenues | ||||||||
Americas | $ | 27,616 | $ | 24,433 | ||||
Europe | 18,061 | 19,781 | ||||||
Asia Pacific | 4,862 | 4,027 | ||||||
$ | 50,539 | $ | 48,241 | |||||
The segregation of revenues by geographic region is based upon the location of the legal entity performing the services. The Company does not measure or monitor gross profit or operating income by geography for the purposes of making operating decisions or allocating resources. | ||||||||
FINANCING_ARRANGEMENTS_AND_LON
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | 3 Months Ended | |||
Mar. 31, 2015 | ||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||
NOTE 8—FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||
On November 16, 2007, our wholly-owned subsidiary International Consulting Acquisition Corp. (“ICAC”) entered into a senior secured credit facility comprised of a $95.0 million term loan facility and a $10.0 million revolving credit facility (the “2007 Credit Agreement”). On November 16, 2007, ICAC borrowed $95.0 million under the term loan facility to finance a portion of the purchase price for our acquisition of TPI and to pay transaction costs. In connection with entering into a new credit facility on May 3, 2013, the Company repaid in full all obligations and liabilities owing under, and terminated, the 2007 Credit Agreement. No early termination penalties were incurred by the Company in connection with the termination of the 2007 Credit Agreement. As a result of this transaction, the Company recognized a loss of $0.4 million in the second quarter of 2013 relating to the write down of unamortized debt financing costs relating to the 2007 Credit Agreement. | ||||
On May 3, 2013 (the “Closing”), the Company entered into a five year senior secured credit facility (the “2013 Credit Agreement”) comprised of a $45.0 million term loan facility and a $25.0 million revolving credit facility. On May 3, 2013, the Company borrowed $55.0 million under the 2013 Credit Agreement to refinance our existing debt under the 2007 Credit Agreement and to pay transaction costs. The material terms of the senior secured credit facility under the 2013 Credit Agreement are as follows: | ||||
· | Each of the term loan facility and revolving credit facility has a maturity date of five years from the Closing. | |||
· | The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries and, subject to agreed exceptions, the Company’s direct and indirect “first-tier” foreign subsidiaries and a perfected first priority security interest in all of the Company’s direct and indirect domestic subsidiaries’ tangible and intangible assets. | |||
· | The Company’s direct and indirect existing and future wholly-owned domestic subsidiaries serve as guarantors to the Company’s obligations under the senior secured facility. | |||
· | At the Company’s option, the credit facility bears interest at a rate per annum equal to either (i) the “Base Rate” (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its “prime rate”, (b) the Federal Funds Rate plus 0.5% per annum and (c) the Eurodollar Rate, plus 1.0%), plus the applicable margin (as defined below) or (ii) Eurodollar Rate (adjusted for maximum reserves) as determined by the Administrative Agent, plus the applicable margin. The applicable margin is adjusted quarterly based upon the Company’s quarterly leverage ratio. Prior to the end of the first full quarter following the closing of the credit facility, the applicable margin was required to be a percentage per annum equal to 2.5% for the term loans and the revolving loans maintained as Base Rate loans or 3.5% for the term loans and revolving loans maintained as Eurodollar loans. | |||
· | The Term Loan is repayable in eight consecutive quarterly installments of $843,750 each, commencing September 30, 2013, followed by eleven consecutive quarterly installments in the amount of $1,125,000 each, commencing September 30, 2015, and a final payment of the outstanding principal amount of the Term Loan on the maturity date. | |||
· | Mandatory repayments of term loans shall be required from (subject to agreed exceptions) (i) 100% of the proceeds from asset sales by the Company and its subsidiaries, (ii) 100% of the net proceeds from issuances of debt and equity by the Company and its subsidiaries, and (iii) 100% of the net proceeds from insurance recovery and condemnation events of the Company and its subsidiaries. | |||
· | The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness (including guarantee obligations), liens, fundamental changes, sales or disposition of property or assets, investments (including loans, advances, guarantees and acquisitions), transaction with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a total leverage ratio and fixed charge coverage ratio. As of March 31, 2015, our maximum total leverage ratio was 3.50 to 1.00 and we were in compliance with all covenants contained in the 2013 Credit Agreement. | |||
· | The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control. | |||
The Company is required under the 2013 Credit Agreement to establish a fixed or maximum interest rate covering a notional amount of not less than 50% of the aggregate outstanding indebtedness for borrowed money (other than the total revolving outstanding) for a period of three years from the closing date of our 2013 Credit Agreement. Subsequent to May 3, 2013, the Company entered into an agreement to cap the interest rate at 5% on the LIBOR component of its borrowings under the term loan facility until May 3, 2016. This interest rate cap is not designated for hedging or speculative purposes. The expense related to this interest rate cap was not material. | ||||
On March 18, 2014, the Company’s lenders agreed to amend the 2013 Credit Agreement to allow the Company to complete the acquisition of CCI Consulting Pty Ltd (“CCI”). In addition, the Company’s lenders agreed to allow the Company to exclude the acquisition from its $5 million fiscal year permitted acquisition basket and from the calculation of its Consolidated Fixed Charge Coverage ratio. Lastly, the Company’s lenders agreed to increase its permitted acquisition baskets during any fiscal year from $5 million to $10 million and the term of our Credit Agreement from $15 million to $40 million. On April 17, 2014, the acquisition of CCI was completed. | ||||
As of March 31, 2015, the total principal outstanding under the term loan facility and revolving credit facility was $39.1 million and $10.0 million, respectively. Additional mandatory principal repayments totaling $3.1 million and $4.5 million will be due in 2015 and 2016, respectively. | ||||
Compass Convertible Notes | ||||
On January 4, 2011, as part of the consideration for the acquisition of Compass, the Company issued an aggregate of $6.3 million in convertible notes to Compass (the “Notes”). The Notes mature on January 4, 2018 and interest is payable on the outstanding principal amount, computed daily, at the rate of 3.875% per annum on January 31 of each calendar year and on the seventh anniversary of the date of the Notes. The Notes were subject to transfer restrictions until January 31, 2013. If the price of the Company’s common stock on the Nasdaq Global Market exceeds $4 per share for 60 consecutive trading days (the “Trigger Event”), a holder of the Notes may convert all (but not less than all) of the outstanding principal amount of the Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. After the Trigger Event, the Company may prepay all or any portion of the outstanding principal amount of the Notes by giving a holder 30 days written notice. | ||||
On April 26, 2013, the Company settled a portion of the Notes. The payee agreed to accept from the Company an amount equal to $650,000 as satisfaction in full of all indebtedness of $1.1 million owing by the Company to such payee. As a result of this transaction, the Company recognized a gain of $0.5 million in the second quarter of 2013 representing the difference between the fair value of the consideration issued in the settlement transaction and the carrying value of the amounts due to the payee. | ||||
On November 14, 2013, the Company’s lenders agreed to amend the 2013 Credit Agreement to allow the Company to prepay the entire outstanding principal amount of the CPIV S.A. Convertible Note (“CPIV Note”) plus accrued interest and exclude the CPIV Note prepayment from the calculation of our consolidated fixed charge coverage ratio. On November 25, 2013, the Company settled a portion of the Notes and prepaid the CPIV Note and the payee agreed to accept from the Company an amount equal to the principal of $1.7 million plus accrued interest as satisfaction in full of all indebtedness owing by the Company to such payee. Therefore, there was no gain or loss recorded as a result of this transaction. | ||||
On March 21, 2014, the Trigger Event occurred. As a result, a holder of the Notes may convert all (but not less than all) of the outstanding principal amount of the Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. In addition, ISG may elect to prepay all or any portion of the outstanding principal amount of the Notes by giving a holder 30 days written notice; however, such holder shall be given the opportunity to convert the outstanding principal amount into shares as described above. The holder of the Notes does not have the option to require cash payment as a result of the Trigger Event, hence the Notes are classified as non-current. | ||||
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENT. | |
SUBSEQUENT EVENT | |
NOTE 9 —SUBSEQUENT EVENT | |
On May 11, 2015, the Company amended the 2013 Credit Agreement originally entered into on May 3, 2013. The amendment includes a reduction in annual mandatory principal payments, a lowering of borrowing costs and extension of the term of the 2013 Credit Agreement by two years, resulting in a maturity date of May 3, 2020. In addition, the amendment also allows the Company to prepay up to $3.5 million of the subordinated convertible notes issued in connection with the Company’s acquisition of Compass in 2011. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Use of Estimates | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the proportional performance method of accounting affect the amounts of revenues, expenses, unbilled receivables and deferred revenue. Numerous internal and external factors can affect estimates. Estimates are also used for but not limited to: allowance for doubtful accounts, useful lives of furniture, fixtures and equipment, depreciation expense, fair value assumptions in business acquisitions and analyzing goodwill and intangible asset impairments, income taxes and deferred tax asset valuation, and the valuation of stock based compensation. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Fair Value | ||||||||||||||
The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, long-term debt, other current liabilities, and accrued interest approximate fair value. | ||||||||||||||
Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: | ||||||||||||||
· | Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; | |||||||||||||
· | Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and | |||||||||||||
· | Level 3 measurements include those that are unobservable and of a highly subjective measure. | |||||||||||||
The Company held investments in cash equivalent money market funds of $20,000 at March 31, 2015 and December 31, 2014. The Company considers the fair value of cash equivalent money market funds to be classified within Level 1 of the fair value hierarchy. | ||||||||||||||
The following table presents the carrying amounts and estimated fair values of our other financial instruments at March 31, 2015 and December 31, 2014: | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||
Liabilities: | ||||||||||||||
Contingent consideration (1) | $ | 4,756 | $ | 4,756 | $ | 4,810 | $ | 4,810 | ||||||
Long-term debt , including current portion | 52,528 | 52,514 | 53,371 | 53,412 | ||||||||||
$ | 57,284 | $ | 57,270 | $ | 58,181 | $ | 58,222 | |||||||
-1 | The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” | |||||||||||||
The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company’s incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.67% to 2.76%. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions. | ||||||||||||||
The Company’s contingent consideration liability was $4.8 million at March 31, 2015 and December 31, 2014, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and thus the likelihood of the Company making payments. These cash outflow projections have been discounted using a rate ranging from 2.3% to 13.5%, which is the after-tax cost of debt financing for market participants. | ||||||||||||||
The following table represents the change in the contingent consideration liability during the three months ended March 31, 2015 and 2014: | ||||||||||||||
Three months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Beginning Balance | $ | 4,825 | $ | 4,085 | ||||||||||
Accretion of contingent consideration | 47 | 5 | ||||||||||||
Impact of currency translation | (116 | ) | — | |||||||||||
Ending Balance | $ | 4,756 | $ | 4,090 | ||||||||||
Dividend | ||||||||||||||
Dividend | ||||||||||||||
On December 2, 2014 the Board of Directors authorized a special dividend of $0.14 per share on the Company’s issued and outstanding shares of common stock. This cash dividend of $5.2 million was paid on January 28, 2015 to shareholders of record as of January 15, 2015. Prior to this special dividend we had not paid any dividends on our common stock. | ||||||||||||||
Recently Issued Accounting Pronouncements. | ||||||||||||||
Recently Issued Accounting Pronouncements | ||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance regarding reporting discontinued operations and disclosures of disposals of components of an entity, which raises the threshold for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The standard is applied prospectively and is effective in 2015 with early adoption permitted. The Company does not believe the adoption of this guidance will impact its consolidated financial statements or disclosures. | ||||||||||||||
In May 2014, the FASB issued new accounting guidance outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||||||||||||||
In August 2014, the FASB issued guidance on management’s responsibility to assess an entity’s ability to continue as a going concern and provide related footnote disclosures in certain circumstances. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2016. The Company does not believe the adoption of this guidance will impact its consolidated financial statements or disclosures. | ||||||||||||||
In April 2015, the FASB issued guidance require the presentation of debt issuance costs in financial statements as a direct reduction of related debt liabilities with amortization of debt issuance costs reported as interest expense. Under current U.S. GAAP standards, debt issuance costs are reported as deferred charges (i.e., as an asset). This guidance is effective for annual periods, and interim periods within those fiscal years, beginning after December 15, 2015 and is to be applied retrospectively upon adoption. Early adoption is permitted, including adoption in an interim period for financial statements that have not been previously issued. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. At March 31, 2015, the Company had debt issuance costs of $0.5 million. | ||||||||||||||
In April 2015, the FASB issued an accounting standards update with new guidance on whether a cloud computing arrangement includes a software license and the accounting for such an arrangement. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the agreement should be accounted for as a service contract. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. We are currently assessing the effects this guidance may have on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Schedule of carrying amounts and estimated fair values of other financial instruments | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||
Liabilities: | ||||||||||||||
Contingent consideration (1) | $ | 4,756 | $ | 4,756 | $ | 4,810 | $ | 4,810 | ||||||
Long-term debt , including current portion | 52,528 | 52,514 | 53,371 | 53,412 | ||||||||||
$ | 57,284 | $ | 57,270 | $ | 58,181 | $ | 58,222 | |||||||
Schedule of change in the contingent consideration liability | ||||||||||||||
Three months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Beginning Balance | $ | 4,825 | $ | 4,085 | ||||||||||
Accretion of contingent consideration | 47 | 5 | ||||||||||||
Impact of currency translation | (116 | ) | — | |||||||||||
Ending Balance | $ | 4,756 | $ | 4,090 | ||||||||||
NET_INCOME_PER_COMMON_SHARE_Ta
NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET INCOME PER COMMON SHARE | ||||||||
Schedule of computation of basic and diluted earnings per share | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic: | ||||||||
Net income attributable to ISG | $ | 853 | 63 | |||||
Weighted average common shares | 37,032 | 37,383 | ||||||
Earnings per share attributable to ISG | $ | 0.02 | $ | 0.00 | ||||
Diluted: | ||||||||
Net income attributable to ISG | $ | 853 | $ | 63 | ||||
Interest expense of convertible debt, net of tax | 16 | 6 | ||||||
Net income , attributable to ISG, as adjusted | $ | 869 | $ | 69 | ||||
Basic weighted average common shares | 37,032 | 37,383 | ||||||
Potential common shares | 1,458 | 1,478 | ||||||
Diluted weighted average common shares | 38,490 | 38,861 | ||||||
Diluted earnings per share attributable to ISG | $ | 0.02 | $ | 0.00 | ||||
SEGMENT_AND_GEOGRAPHICAL_INFOR1
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | ||||||||
Schedule of geographical revenue information for the segment | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenues | ||||||||
Americas | $ | 27,616 | $ | 24,433 | ||||
Europe | 18,061 | 19,781 | ||||||
Asia Pacific | 4,862 | 4,027 | ||||||
$ | 50,539 | $ | 48,241 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in the contingent consideration liability | ||||
Payments | ($5,189,000) | |||
Cash equivalents | 17,210,000 | 26,185,000 | 27,662,000 | 35,085,000 |
Minimum | ||||
Change in the contingent consideration liability | ||||
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent) | 2.67% | |||
Rate used to discount future cash outflow projections related to contingent consideration (as a percent) | 2.30% | |||
Maximum | ||||
Change in the contingent consideration liability | ||||
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent) | 2.76% | |||
Rate used to discount future cash outflow projections related to contingent consideration (as a percent) | 13.50% | |||
Fair Value Inputs Level3 | ||||
Change in the contingent consideration liability | ||||
Beginning Balance | 4,825,000 | 4,085,000 | ||
Accretion of contingent consideration | 47,000 | 5,000 | ||
Impact of currency translation | -116,000 | |||
Ending Balance | 4,756,000 | 4,090,000 | ||
Contingent consideration | 4,756,000 | 4,090,000 | ||
CCI Consulting Private Limited | ||||
Change in the contingent consideration liability | ||||
Ending Balance | 1,800,000 | |||
Contingent consideration | 1,800,000 | |||
Carrying Amount | Fair Value Inputs Level3 | ||||
Change in the contingent consideration liability | ||||
Beginning Balance | 4,810,000 | |||
Ending Balance | 4,756,000 | 4,810,000 | ||
Contingent consideration | 4,756,000 | 4,810,000 | ||
Long-term debt, including current portion | 52,528,000 | 53,371,000 | ||
Total | 57,284,000 | 58,181,000 | ||
Estimated Fair Value | ||||
Change in the contingent consideration liability | ||||
Beginning Balance | 4,810,000 | |||
Ending Balance | 4,810,000 | |||
Contingent consideration | 4,810,000 | |||
Long-term debt, including current portion | 53,412,000 | |||
Total | 58,222,000 | |||
Estimated Fair Value | Fair Value Inputs Level1 | Money Market Funds | ||||
Change in the contingent consideration liability | ||||
Cash equivalents | 20,000 | 20,000 | ||
Estimated Fair Value | Fair Value Inputs Level3 | ||||
Change in the contingent consideration liability | ||||
Beginning Balance | 4,800,000 | |||
Ending Balance | 4,756,000 | 4,800,000 | ||
Contingent consideration | 4,756,000 | 4,800,000 | ||
Long-term debt, including current portion | 52,514,000 | |||
Total | $57,270,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details2) (USD $) | 0 Months Ended | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jan. 28, 2015 | Dec. 02, 2014 | Mar. 31, 2015 |
Dividend | |||
Special dividend declared per share | $0.14 | ||
Special dividend paid per share | $5.20 | ||
Recently Issued Accounting Pronouncements. | |||
Debt issuance costs | $0.50 |
NET_INCOME_PER_COMMON_SHARE_De
NET INCOME PER COMMON SHARE (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Appreciation Rights S A R S | ||
Antidilutive securities | ||
Securities considered antidilutive (in shares) | 100,000 | 100,000 |
Restricted Stock | ||
Antidilutive securities | ||
Securities considered antidilutive (in shares) | 100,000 | |
Restricted Stock | Salvaggio Teal And Associates | ||
Antidilutive securities | ||
Shares excluded from basic and diluted earnings per share since the contingency has not been met | 250,000 | |
Restricted Stock | CCI Consulting Private Limited | ||
Antidilutive securities | ||
Shares excluded from basic and diluted earnings per share since the contingency has not been met | 50,000 |
NET_INCOME_PER_COMMON_SHARE_De1
NET INCOME PER COMMON SHARE (Details 2) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic: | ||
Net income attributable to ISG | $853 | $63 |
Weighted average common shares | 37,032 | 37,383 |
Earnings per share attributable to ISG | $0.02 | $0 |
Diluted: | ||
Net income attributable to ISG | 853 | 63 |
Interest expense of convertible debt, net of tax | 16 | 6 |
Net income, attributable to ISG, as adjusted | $869 | $69 |
Basic Weighted Average Common shares | 37,032 | 37,383 |
Potential common shares | 1,458 | 1,478 |
Diluted weighted average common shares | 38,490 | 38,861 |
Diluted earnings per share attributable to ISG | $0.02 | $0 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
INCOME TAXES | ||
Effective income tax rates (as a percent) | 51.00% | 82.60% |
Pretax income (loss) | $1,851,000 | $506,000 |
Income Tax Expense (Benefit) | 944,000 | 418,000 |
Unrecognized tax benefits | 2,300,000 | |
Unrecognized tax benefits that would impact the company's effective tax rate | 2,300,000 | |
Interest and penalties accrued | $600,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2015 |
Salvaggio Teal And Associates | CCI Consulting Private Limited | Subsequent Event | Subsequent Event | |
USD ($) | USD ($) | AUD | Salvaggio Teal And Associates | |
USD ($) | ||||
Contingent Consideration | ||||
Contingent consideration | $3,000,000 | $1,800,000 | ||
Contingent consideration classified as current | 600,000 | |||
Amount expected to be paid in first quarter of 2015 and the first quarter of 2016 related to 2014 performance | 1,700,000 | |||
Amount paid for contingent consideration | 800,000 |
SEGMENT_AND_GEOGRAPHICAL_INFOR2
SEGMENT AND GEOGRAPHICAL INFORMATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
SEGMENT AND GEOGRAPHICAL INFORMATION | ||
Number of segments | 1 | |
Segment and geographical information | ||
Revenues | $50,539 | $48,241 |
Americas | ||
Segment and geographical information | ||
Revenues | 27,616 | 24,433 |
Europe | ||
Segment and geographical information | ||
Revenues | 18,061 | 19,781 |
Asia Pacific | ||
Segment and geographical information | ||
Revenues | $4,862 | $4,027 |
FINANCING_ARRANGEMENTS_AND_LON1
FINANCING ARRANGEMENTS AND LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 21, 2014 | Nov. 14, 2013 | Apr. 26, 2013 | Jan. 04, 2011 | Jan. 03, 2011 | Jan. 04, 2011 | Jun. 30, 2013 | 3-May-13 | Mar. 18, 2014 | Nov. 25, 2013 | Nov. 16, 2007 | |
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Additional principal repayment due in 2015 | 3,100,000 | |||||||||||
Additional principal repayment due in 2016 | 4,500,000 | |||||||||||
Secured Debt | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Outstanding borrowings | 39,100,000 | |||||||||||
Secured Debt | Subsidiaries | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Maximum total leverage ratio | 3.50% | |||||||||||
Revolving Credit Facility | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Outstanding borrowings | 10,000,000 | |||||||||||
Convertible Notes Payable | C C G H Limited | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Amount of gain (loss) recognized | 500,000 | |||||||||||
Issuance of debt | 6,300,000 | |||||||||||
Rate of interest (as a percent) | 3.88% | 3.88% | ||||||||||
Trigger Event condition related to minimum market price of common stock on the Nasdaq Global market (in dollars per share) | $4 | $4 | ||||||||||
Trigger event condition related to number of consecutive trading days on which market price of common stock exceeds $4 per share on the Nasdaq Global Market | 60 days | |||||||||||
Conversion rate | 0.25 | 0.25 | 0.25 | |||||||||
Written notice period after trigger event, that company need to serve for prepayment of all or portion of the outstanding principal amount of the Notes | 30 days | 30 days | ||||||||||
Amount paid in satisfaction of full of all indebtedness owing by the Company under the Note | 650,000 | |||||||||||
Amount outstanding | 1,100,000 | |||||||||||
Credit Agreement2007 | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Early termination penalties incurred | 0 | |||||||||||
Amount of gain (loss) recognized | -400,000 | |||||||||||
Credit Agreement2007 | Secured Debt | Subsidiaries | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Maximum borrowing capacity under senior secured credit facility | 95,000,000 | |||||||||||
Outstanding borrowings | 95,000,000 | |||||||||||
Credit Agreement2007 | Revolving Credit Facility | Subsidiaries | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Maximum borrowing capacity under senior secured credit facility | 10,000,000 | |||||||||||
Credit Agreement2013 | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Outstanding borrowings | 55,000,000 | |||||||||||
Term of senior secured credit facility | 5 years | |||||||||||
Credit Agreement2013 | Base Rate | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | Base Rate | |||||||||||
Credit Agreement2013 | Prime Rate | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | prime rate | |||||||||||
Credit Agreement2013 | Federal Funds Rate | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | Federal Funds Rate | |||||||||||
Applicable margin (as a percent) | 0.50% | |||||||||||
Credit Agreement2013 | Eurodollar | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | Eurodollar Rate | |||||||||||
Applicable margin (as a percent) | 1.00% | |||||||||||
Credit Agreement2013 | Secured Debt | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Maximum borrowing capacity under senior secured credit facility | 45,000,000 | |||||||||||
Term of senior secured credit facility | 5 years | |||||||||||
Percentage of proceeds from asset sales used for mandatory repayments of the debt | 100.00% | |||||||||||
Percentage of net proceeds from issuances of debt and equity used for mandatory repayments of the debt | 100.00% | |||||||||||
Percentage of net proceeds from insurance recovery and condemnation events used for mandatory repayments of the debt | 100.00% | |||||||||||
Minimum notional amount required as a percentage of aggregate outstanding indebtedness other than revolving outstanding for establishment of fixed or maximum interest rate covering | 50.00% | |||||||||||
Interest rate covering period for specified percentage of notional amount | 3 years | |||||||||||
Permitted acquisition baskets amount | 5,000,000 | |||||||||||
Permitted acquisition baskets amount after increase | 10,000,000 | |||||||||||
Permitted acquisition baskets term amount | 15,000,000 | |||||||||||
Permitted acquisition baskets term amount after increase | 40,000,000 | |||||||||||
Credit Agreement2013 | Secured Debt | Debt Instrument Periodic Payment By Commencing Date30 September2013 | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Numbers of consecutive quarterly installments in which principal amount is repaid | 8 | |||||||||||
Principal repayments | 843,750 | |||||||||||
Credit Agreement2013 | Secured Debt | Debt Instrument Periodic Payment By Commencing Date30 September2015 | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Numbers of consecutive quarterly installments in which principal amount is repaid | 11 | |||||||||||
Principal repayments | 1,125,000 | |||||||||||
Credit Agreement2013 | Secured Debt | Base Rate | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | Base Rate loans | |||||||||||
Applicable margin (as a percent) | 2.50% | |||||||||||
Credit Agreement2013 | Secured Debt | Eurodollar | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | Eurodollar loans | |||||||||||
Applicable margin (as a percent) | 3.50% | |||||||||||
Credit Agreement2013 | Secured Debt | London Interbank Offered Rate L I B O R | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Interest rate basis | LIBOR | |||||||||||
Applicable margin (as a percent) | 5.00% | |||||||||||
Credit Agreement2013 | Revolving Credit Facility | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Maximum borrowing capacity under senior secured credit facility | 25,000,000 | |||||||||||
Credit Agreement2013 | Convertible Notes Payable | C C G H Limited | ||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | ||||||||||||
Amount of gain (loss) recognized | 0 | |||||||||||
Settlement of Compass convertible note | $1,700,000 |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (Subsequent Event, Credit Agreement2013, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | 11-May-15 |
SUBSEQUENT EVENT | |
Additional term due to amendment | 2 years |
C C G H Limited | Convertible Notes Payable | |
SUBSEQUENT EVENT | |
Amount of prepayment available under amended facility | 3.5 |