Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MHH | |
Entity Registrant Name | Mastech Holdings, Inc. | |
Entity Central Index Key | 1,437,226 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,334,124 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 29,305 | $ 27,656 | $ 56,365 | $ 56,340 |
Cost of revenues | 23,790 | 22,550 | 46,163 | 46,009 |
Gross profit | 5,515 | 5,106 | 10,202 | 10,331 |
Selling, general and administrative expenses | 4,896 | 3,687 | 9,255 | 7,518 |
Income from operations | 619 | 1,419 | 947 | 2,813 |
Interest (expense), net | (36) | (23) | (47) | (46) |
Other income, net | 38 | 37 | 32 | 68 |
Income from before income taxes | 621 | 1,433 | 932 | 2,835 |
Income tax expense | 239 | 540 | 355 | 1,073 |
Net income | $ 382 | $ 893 | $ 577 | $ 1,762 |
Earnings per share: | ||||
Basic | $ 0.09 | $ 0.21 | $ 0.13 | $ 0.41 |
Diluted | $ 0.09 | $ 0.20 | $ 0.13 | $ 0.40 |
Weighted average common shares outstanding: | ||||
Basic | 4,332 | 4,317 | 4,330 | 4,314 |
Diluted | 4,436 | 4,458 | 4,437 | 4,457 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 382 | $ 893 | $ 577 | $ 1,762 |
Other comprehensive income (loss): | ||||
Total pretax net unrealized gain/(loss) | (55) | (17) | (26) | 35 |
Income tax expense/(benefit) | (21) | (6) | (10) | 14 |
Total other comprehensive income/(loss), net of taxes | (34) | (11) | (16) | 21 |
Total comprehensive income | 348 | 882 | 561 | 1,783 |
Currency Forward Contracts [Member] | ||||
Other comprehensive income (loss): | ||||
Total pretax net unrealized gain/(loss) | (17) | $ (17) | 12 | $ 35 |
Interest Rate Swap [Member] | ||||
Other comprehensive income (loss): | ||||
Total pretax net unrealized gain/(loss) | $ (38) | $ (38) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 490 | $ 2,568 |
Accounts receivable, net of allowance for uncollectible accounts of $260 in 2015 and 2014 | 11,601 | 10,677 |
Unbilled receivables | 5,470 | 4,549 |
Prepaid and other current assets | 635 | 926 |
Deferred income taxes | 225 | 120 |
Total current assets | 18,421 | 18,840 |
Equipment, enterprise software, and leasehold improvements, at cost: | ||
Equipment | 1,108 | 1,022 |
Enterprise software | 645 | 629 |
Leasehold improvements | 328 | 320 |
Total equipment, enterprise software, and leasehold improvements | 2,081 | 1,971 |
Less - accumulated depreciation | (1,379) | (1,270) |
Net equipment, enterprise software, and leasehold improvements | 702 | 701 |
Deferred income taxes | 207 | 188 |
Deferred financing costs, net | 115 | 51 |
Non-current deposits | 232 | 264 |
Goodwill | 8,427 | |
Intangible assets, net | 8,533 | |
Total assets | 36,637 | 20,044 |
Current liabilities: | ||
Current portion of long-term debt | 1,800 | |
Accounts payable | 2,766 | 1,514 |
Accrued payroll and related costs | 5,725 | 5,012 |
Other accrued liabilities | 534 | 531 |
Deferred revenue | 167 | 119 |
Total current liabilities | 10,992 | 7,176 |
Long-term liabilities: | ||
Long-term debt, less current portion | 12,072 | |
Total liabilities | $ 23,064 | $ 7,176 |
Commitments and contingent liabilities (Note 4) | ||
Shareholders' equity: | ||
Preferred Stock, no par value; 20,000,000 shares authorized; none outstanding | ||
Common Stock, par value $.01; 125,000,000 shares authorized and 5,150,078 shares issued as of June 30, 2015 and 5,099,184 shares issued as of December 31, 2014 | $ 52 | $ 51 |
Additional paid-in-capital | 13,077 | 12,733 |
Retained earnings | 4,601 | 4,024 |
Accumulated other comprehensive loss | (41) | (25) |
Treasury stock, at cost; 815,954 shares as of June 30, 2015 and 795,063 as of December 31, 2014 | (4,116) | (3,915) |
Total shareholders' equity | 13,573 | 12,868 |
Total liabilities and shareholders' equity | $ 36,637 | $ 20,044 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectible accounts | $ 260 | $ 260 |
Preferred Stock, par value | ||
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 5,150,078 | 5,099,184 |
Treasury stock, shares | 815,954 | 795,063 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net income | $ 577 | $ 1,762 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 143 | 59 |
Interest amortization of deferred financing costs | 11 | 14 |
Stock-based compensation expense | 193 | 172 |
Deferred income taxes, net | (123) | 19 |
(Gain) on derivative contract | (24) | (21) |
Working capital items: | ||
Accounts receivable and unbilled receivables | (1,845) | (227) |
Prepaid and other current assets | 316 | (136) |
Accounts payable | 1,252 | (45) |
Accrued payroll and related costs | 713 | (632) |
Other accrued liabilities | (142) | |
Deferred revenue | 17 | 65 |
Net cash flows provided by operating activities | 1,230 | 888 |
INVESTING ACTIVITIES: | ||
Acquisition of Hudson IT | (16,987) | |
Recovery of (payments for) non-current deposits | 36 | (4) |
Capital expenditures | (104) | (152) |
Net cash flows (used in) investing activities | (17,055) | (156) |
FINANCING ACTIVITIES: | ||
Borrowings under term loan facility | 9,000 | |
Borrowings (repayments) on revolving credit facility, net | 4,872 | (12) |
Payment of deferred financing costs | (75) | |
Purchase of treasury stock | (201) | (272) |
Proceeds from the exercise of stock options | 17 | 14 |
Increase in excess tax benefits related to stock options / restricted shares, net | 134 | 363 |
Net cash flows provided by financing activities | 13,747 | 93 |
Net change in cash and cash equivalents | (2,078) | 825 |
Cash and cash equivalents, beginning of period | 2,568 | 424 |
Cash and cash equivalents, end of period | $ 490 | $ 1,249 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation: References in this Quarterly Report on Form 10-Q to “we”, “our”, “Mastech” or “the Company” refer collectively to Mastech Holdings, Inc. and its wholly-owned operating subsidiaries, which are included in these Condensed Consolidated Financial Statements. Recent Developments On June 15, 2015, the Company completed the acquisition of Hudson Global’s U.S. IT staffing business (“Hudson IT”) as more fully described in Note 2 “Acquisition” of these Notes to the Condensed Consolidated Financial Statements. Hudson IT is a domestic IT staffing business with offices in Chicago, Boston, Tampa and Orlando. In support of this acquisition, the Company entered into an amendment to its existing loan agreement with PNC Bank, N.A. The amended terms included the addition of a $9 million term loan and a $3 million reduction to the Company’s existing credit facility for revolver credit loans and letters of credit. Other pertinent terms and conditions are more fully described in Note 8 “Credit Facility” of these Notes to the Condensed Consolidated Financial Statements. Description of Business We are a provider of IT staffing services. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services within business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; eBusiness solutions; mobile applications; and the implementation and support for cloud-based applications. We work with businesses and institutions with significant IT spending and recurring staffing needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. Our services span a broad range of industry verticals including: automotive; consumer products; education; financial services; government; healthcare; manufacturing; retail; technology; telecommunications; transportation; and utilities. Basis of Presentation The accompanying Condensed Consolidated Financial Statements (the “Financial Statements”) have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2014, included in our Annual Report on Form 10-K filed with the SEC on March 20, 2015. Additionally, our operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that can be expected for the year ending December 31, 2015 or for any other period. Principles of Consolidation The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Critical Accounting Policies Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2014 for a more detailed discussion of our significant accounting policies and critical accounting estimates. Except for Goodwill and Intangible Assets and Acquisitions, which are described below, there were no material changes to these critical accounting policies and estimates during the six months ended June 30, 2015. Goodwill and Intangible Assets Identifiable intangible assets are recorded at fair value when acquired in a purchase business combination. In connection with our acquisition of Hudson IT, intangible assets were recorded at their estimated fair value on June 15, 2015. Identifiable intangible assets consisted of client relationships, a covenant not-to-compete and a trade name and are being amortized using the straight-line method over their estimated useful lives ranging from 3 years to 12 years, as more fully described in Note 2 “Acquisition” of these Notes to the Condensed Consolidated Financial Statements. Other intangible assets not arising from business combinations are initially recorded at cost. Acquisitions The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations. The guidance requires consideration given, including contingent consideration, assets acquired and liabilities assumed to be valued at their fair market values at the acquisition date. The guidance further provides that: (1) in-process research and development will be recorded at fair value as an indefinite-lived intangible asset; (2) acquisition costs will generally be expensed as incurred, (3) restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (4) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities assumed be recognized as goodwill. In accordance with ASC 805, any excess of fair value of acquired net assets, including identifiable intangibles assets, over the acquisition consideration results in a bargain purchase gain. Prior to recording a gain, the acquiring entity must reassess whether all acquired assets and assumed liabilities have been identified and recognized and perform re-measurements to verify that the consideration paid, assets acquired and liabilities assumed have been properly valued. The Hudson Global U.S. IT staffing business (“Hudson IT”) results are included in the Company’s results from their date of acquisition of June 15, 2015. We review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair market value. Excess purchase price over the fair values of net tangible assets and identifiable intangible assets acquired are recorded as goodwill. Goodwill is not amortized but is tested for impairment at least on an annual basis. If impairment is indicated, a write-down to fair value is recorded based on the excess of the carrying value of the asset over its fair market value. Segment Reporting The Company has one reportable segment in accordance with ASC Topic 280 “Disclosures About Segments of an Enterprise and Related Information”. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition | 2. Acquisition On June 15, 2015, the Company completed the cash acquisition of Hudson IT. Hudson IT is a domestic information technology staffing business with offices in Chicago, Boston, Tampa and Orlando. The acquisition furthers Mastech’s growth strategy as a premier provider of IT staffing services by expanding its existing client base, increasing its domestic recruitment capabilities and strengthening its management talent. The acquisition was structured as an asset purchase and was accounted for using the acquisition method of accounting. The acquisition method of accounting requires that the assets acquired and liabilities assumed be measured at their fair values as of the closing date. The financial terms of the acquisition included a $17 million purchase price, with the seller retaining essentially all working capital. The following table summarizes the consideration paid for Hudson IT: (in thousands) Amounts Cash paid at Closing $ 16,987 Assumption of Current Liabilities (net of current assets) 13 Total Consideration $ 17,000 The cash purchase price at closing was paid with funds obtained from the following sources: (in thousands) Amounts Cash balances on hand $ 2,000 Term loan facility 9,000 Revolving line of credit 5,987 Cash paid at Closing $ 16,987 The preliminary allocation of purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of June 15, 2015, as set forth below. The excess purchase price over the fair values of the net tangible assets and identifiable intangible assets was recorded as goodwill, which includes value associated with the assembled workforce. All goodwill is expected to be deductible for tax purposes. The valuation of net assets acquired is as follows: (in thousands) Amounts Current Assets $ 18 Fixed Assets 6 Identifiable intangible assets: Client relationships 7,999 Covenant not-to-compete 319 Trade name 249 Total identifiable intangible assets 8,567 Goodwill 8,427 Current liabilities (31 ) Net Assets Acquired $ 16,987 The fair value of identifiable intangible assets has been estimated using the income approach through a discounted cash flow analysis. Specifically, the Company used the income approach through an excess earnings analysis to determine the fair value of client relationships. The value applied to the covenant not-to-compete was based on an income approach using a “with or without” analysis of this covenant in place. The trade name was valued using the income approach – relief from royalty method. All identifiable intangibles are considered level 3 inputs under the fair value measurement and disclosures guidance. The Company incurred $549,000 of direct transaction costs related to the acquisition for the three months ended June 30, 2015 and $599,000 for the six months ended June 30, 2015. These costs are included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statement of Operations. Included in the Condensed Consolidated Statement of Operations for the three and six month periods ended June 30, 2015 are revenues of $1.3 million and net income of approximately $0.1 million applicable to the Hudson IT operations since the acquisition date. The following reflects the Company’s unaudited pro forma results had the results of Hudson IT been included for all periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 (Amounts in Thousands) (Amounts in Thousands) Revenue $ 35,532 $ 37,188 $ 70,094 $ 75,167 Net income $ 508 $ 1,403 $ 833 $ 2,742 Earnings per share - diluted $ 0.11 $ 0.31 $ 0.19 $ 0.62 The information above does not reflect any operating efficiencies or inefficiencies that may result from the Hudson IT acquisition. Therefore, this information is not necessarily indicative of results that would have been achieved had the business been combined during the periods presented or the results that the Company will experience going forward. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | 3. Goodwill and Other Intangible Assets, net Goodwill related to our June 15, 2015 acquisition of Hudson IT totaled $8.4 million. The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Intangible assets were comprised of the following as of June 30, 2015: As of June 30, (Amounts in thousands) Amortization Period Gross Carrying Accumulative Net Carrying Client relationships 12 $ 7,999 $ 27 $ 7,972 Covenant-not-to-compete 5 319 3 316 Trade name 3 249 4 245 Total Intangible Assets $ 8,567 $ 34 $ 8,533 Amortization expense for the three and six month periods ended June 30, 2015 was $34,000 and is included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. There was no amortization expense for the three and six month periods ended June 30, 2014. The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2015 through 2019 is as follows: Years Ended December 31, 2015 2016 2017 2018 2019 (Amounts in thousands) Amortization expense $ 441 $ 813 $ 813 $ 768 $ 730 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 4. Commitments and Contingencies Lease Commitments The Company rents certain office space and equipment under non-cancelable leases which provide for future minimum rental payments. Total lease commitments have not materially changed from the amounts disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Contingencies In the ordinary course of our business, the Company is involved in a number of lawsuits and administrative proceedings. While uncertainties are inherent in the final outcome of these matters, the Company’s management believes, after consultation with legal counsel, that the disposition of these proceedings should not have a material adverse effect on our financial position, results of operations or cash flows. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 5. Employee Benefit Plan The Company provides an Employee Retirement Savings Plan (the “Retirement Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), that covers substantially all U.S. based salaried employees. Concurrent with the acquisition of Hudson IT, the Company expanded employee eligibility under the Retirement Plan to include all U.S. based W-2 hourly employees. Employees may contribute a percentage of eligible compensation to the Retirement Plan, subject to certain limits under the Code. For Hudson IT employees enrolled in the Hudson Employee Retirement Savings Plan under the Code at the acquisition date, the Company provides a matching contribution of 50% of the first 6% of the participant’s contributed pay, subject to vesting based on the combined tenure with Hudson and Mastech. For all other employees, the Company did not provide for any matching contributions for the six months ended June 30, 2015 and June 30, 2014. Mastech’s total contributions to the Retirement Plan for the three and six months ended June 30, 2015 related to the Hudson IT employees totaled approximately $1,000. |
Mastech Stock Incentive Plan
Mastech Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Mastech Stock Incentive Plan | 6. Mastech Stock Incentive Plan In 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 1,200,000 shares of the Company’s common stock shall be allocated for issuance to directors, officers and key personnel. Grants under the Plan can be made in the form of stock options, stock appreciation rights, performance shares or stock awards. During the three and six months ended June 30, 2015, there were 18,000 stock award grants made under this Plan. For the three and six months ended June 30, 2014, there were no shares granted under this Plan. As of June 30, 2015 and December 31, 2014, there were 160,000 and 178,000 shares, respectively, available for grant under this Plan. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation Stock-based compensation expense for the three months ended June 30, 2015 and 2014 was $98,000 and $87,000, respectively, and for the six months ended June 30, 2015 and 2014 was $193,000 and $172,000, respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2015, the Company issued 4,306 shares and 50,895 shares, respectively, related to the exercise of stock options and the vesting of restricted stock and performance shares. During the three and six months ended June 30, 2014, the Company issued 9,869 and 85,612 shares, respectively, related to the exercise of stock options and vesting of restricted stock and performance shares. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Credit Facility | 8. Credit Facility On June 15, 2015, the Company entered into a First Amendment to its Second Amended and Restated Loan Agreement (the “Amendment”) with PNC Bank, N.A. (“PNC”). The amended terms set forth in the Amendment include the following: (1) a reduction in the maximum principal amount available under the credit facility for revolving credit loans and letters of credit from $20 million to $17 million and an extension of the facility to June 15, 2018 from July 14, 2017; (2) the addition of a term-loan component in the principle amount of $9 million with an expiration date of June 15, 2020; (3) approval of the Company’s acquisition of Hudson IT; and (4) amendment to the financial covenant relating to the Company’s fixed charge ratio and the elimination of a financial covenant relating to the Company’s senior leverage ratio, as more fully described in the Amendment filed as Exhibit 10.1 to the Company’s Form 8-K, filed with the SEC on June 17, 2015. Advances under the credit facility for revolving credit loans are limited to a borrowing base that consists of the sum of 85% of eligible accounts receivable and 60% of eligible unbilled receivables. Amounts borrowed under the facility may be used for working capital and general corporate purposes, for the issuance of standby letters of credit, and to facilitate other acquisitions and stock repurchases. Initial borrowings under the revolving credit facility for the acquisition of Hudson IT totaled $6.0 million. Amounts borrowed under the term loan were limited to use for the Company’s acquisition of Hudson IT. The term loan is payable in 60 consecutive monthly installment each in the amount of $150,000 commencing on July 1, 2015 and on the first day of each calendar month thereafter followed by a final payment of all outstanding principal and interest due on June 15, 2020. Borrowings under the credit facility for revolving credit loans and the term loan will, at the Company’s election, bear interest at either (a) the higher of PNC’s prime rate or the federal funds rate plus 0.50%, plus an applicable margin determined based upon the Company’s leverage ratio or (b) an adjusted LIBOR rate, plus an applicable margin determined based upon the Company’s leverage ratio. The applicable margin on the base rate is between 0.25% and 0.75% on revolving credit loans and between 1.50% and 2.00% on term loans. The applicable margin on the adjusted LIBOR rate is between 1.25% and 1.75% on revolving credit loans and between 2.50% and 3.00% on term loans. A 20 basis point per annum commitment fee on the unused portion of the credit facility for revolving credit loans is charged and due monthly in arrears through June 15, 2018. The loan agreement contains standard financial covenants, including but not limited to, covenants related to the Company’s leverage ratio and fixed charge ratio (as defined under the loan agreement) and limitations on liens, indebtedness, guarantees, contingent liabilities, loans and investments, distributions, leases, asset sales, stock repurchases and mergers and acquisitions. As of June 30, 2015, the Company was in compliance will all provisions under the facility. In connection with securing the Amendment, the Company paid a commitment fee and incurred transaction costs totaling $75,000, which are being amortized over the lives of the facilities. As of June 30, 2015, the Company’s outstanding borrowings under the credit facility for revolving credit loans totaled $4.9 million and used borrowing capacity available of $8.3 million. The Company’s outstanding borrowings under the term loan were $9.0 million at June 30, 2015. The Company believes the eligible borrowing base on the revolving credit facility will not fall below current outstanding borrowings for a period of time exceeding one year and has classified the $4.9 million outstanding debt balance at June 30, 2015 as long-term. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The components of income before income taxes, as shown in the accompanying Condensed Consolidated Financial Statements, consisted of the following for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Amounts in thousands) (Amounts in thousands) Income before income taxes: Domestic $ 621 $ 1,433 $ 932 $ 2,835 Foreign — — — — Income before income taxes $ 621 $ 1,433 $ 932 $ 2,835 While all of the Company’s revenues and income is generated within the United States, the Company does have a foreign subsidiary in India which provides recruitment services to its U.S. operations. Accordingly, the Company allocates a portion of its income to this subsidiary based on a “transfer pricing” model. No provision for U.S. income taxes has been made for the undistributed earnings of its Indian subsidiary as of June 30, 2015, as those earnings are expected to be permanently reinvested outside the U.S. If these foreign earnings were to be repatriated in the future, the U.S. tax liability may be reduced by any foreign income taxes previously paid on such earnings, which would make this U.S. tax liability immaterial. The determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. The provision for income taxes, as shown in the accompanying Condensed Consolidated Financial Statements, consisted of the following for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Amounts in thousands) (Amounts in thousands) Current provision: Federal $ 252 $ 502 $ 430 $ 975 State 31 51 48 103 Total current provision 283 553 478 1,078 Deferred (benefit): Federal (38 ) (11 ) (107 ) (4 ) State (6 ) (2 ) (16 ) (1 ) Total deferred (benefit) (44 ) (13 ) (123 ) (5 ) Total provision for income taxes $ 239 $ 540 $ 355 $ 1,073 The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes for the three and six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Income taxes computed at the federal statutory rate $ 211 34.0 % $ 487 34.0 % State income taxes, net of federal tax benefit 25 4.0 49 3.4 Other – net 3 0.5 4 0.3 $ 239 38.5 % $ 540 37.7 % Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Income taxes computed at the federal statutory rate $ 317 34.0 % $ 964 34.0 % State income taxes, net of federal tax benefit 32 3.5 102 3.6 Other – net 6 0.6 7 0.2 $ 355 38.1 % $ 1,073 37.8 % A reconciliation of the beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions, including interest and penalties, are as follows: (Amounts in thousands) Six Months Ended June 30, 2015 Balance as of December 31, 2014 $ 138 Additions related to current period 16 Additions related to prior periods — Reductions related to prior periods — Balance as of June 30, 2015 $ 154 Although it is difficult to anticipate the final outcome of these uncertain tax positions, the Company believes that the total amount of unrecognized tax benefits could be reduced by approximately $38,000 during the next twelve months due to the expiration of the statutes of limitation. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 10. Derivative Instruments and Hedging Activities Interest Rate Risk Management Concurrent with the Company’s borrowings under the $9 million term loan facility, the Company entered into a five-year interest-rate swap to swap the debt’s variable interest for fixed interest. Under the swap contracts, the Company pays interest at a fixed rate of 1.515% and receives interest at a variable rate equal to the daily U.S. LIBOR rate on a notional amount of $5,000,000. Both the debt and the swap contracts mature in 60-monthly installments commencing on July 1, 2015. These swap contracts have been designated as cash flow hedging instruments and qualified as effective hedges at inception under ASC Topic 815, “Derivatives and Hedging”. These contracts are recognized on the balance sheet at fair value. The effective portion of the changes in fair value on these instruments is recorded in other comprehensive income (loss) and is reclassified into the Consolidated Statements of Operations as interest expense in the same period in which the underlying hedge transaction affects earnings. The fair value of the interest rate swap contracts at June 30, 2015 was a liability of $38,000 and is reflected in the Condensed Consolidated Balance Sheet as other current liabilities. Foreign Currency Risk Management The Company enters into foreign currency forward contracts (“derivative contracts”) to mitigate and manage the risk of changes in foreign exchange rates related to highly probable expenditures in support of its Indian-based global recruitment operations. These forward contracts have been designated as cash flow hedging instruments and qualified as effective hedges at inception under ASC Topic 815, “Derivatives and Hedging”. All derivatives are recognized on the balance sheet at fair value. The effective portion of the changes in fair value on these instruments is recorded in other comprehensive income (loss) and is reclassified into the Consolidated Statements of Operations on the same line item and in the same period in which the underlying hedge transaction affects earnings. Changes in the fair value of these instruments deemed ineffective are recognized in the Consolidated Statements of Operations as foreign exchange gains (losses). Hedge effectiveness is assessed based on changes in the fair value of the forward contracts related to the difference between the spot price and the forward price. Forward points (premiums/discounts) are excluded from the assessment of hedge effectiveness and are recognized in the Condensed Consolidated Statements of Operations as foreign exchange gains (losses). As of June 30, 2015, the Company’s outstanding contracts mature in six monthly installments of 11 million rupees per month through December 2015, meet the qualifying criteria for hedge accounting and have been deemed to be effective. Accordingly, the Company has recorded other comprehensive pretax losses of $29,000 as of June 30, 2015. The following table presents information related to foreign currency forward contracts held by the Company: Outstanding hedge transactions qualifying for hedge accounting as of June 30, 2015 (amounts in thousands): Maturity Date Ranges Rupee Strike Price Amount Net Unrealized Forward contracts USD: From: July 20, 2015 64.04 To: December 18, 2015 65.34 Total $ 1,018 $ (29 ) The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income are as follows (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended June 30, 2015: Currency Forward Contracts $ (17 ) SG&A Expense $ (13 ) Other Income/(Expense) $ 44 Interest- Rate Swap Contract $ (38 ) Interest Expense $ (3 ) Interest Expense $ — For the Six Months Ended June 30, 2015: Currency Forward Contracts $ 12 SG&A Expense $ (17 ) Other Income/(Expense) $ 43 Interest- Rate Swap Contract $ (38 ) Interest Expense $ (3 ) Interest Expense $ — For the Three Months Ended June 30, 2014: Currency Forward Contracts $ (17 ) SG&A Expense $ 9 Other Income/(Expense) $ 34 For the Six Months Ended June 30, 2014: Currency Forward Contracts $ 35 SG&A Expense $ 4 Other Income/(Expense) $ 68 Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): June 30, 2015 December 31, 2014 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Currency Forward Contracts Other Current Liabilities $ 3 Other Current Liabilities $ 38 Interest-Rate Swap Contracts Other Current Liabilities $ 38 $ — $ — The estimated amount of pretax losses as of June 30, 2015 that is expected to be reclassified from other comprehensive income (loss) into earnings within the next 12 months is ($67,000). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The Company has adopted the provisions of ASC 820, “Fair Value Measurements and Disclosures” • Level 1 - Inputs are observable quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2 - Inputs are observable, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are directly or indirectly observable in the marketplace. • Level 3 - Inputs are unobservable that are supported by little or no market activity. At June 30, 2015 and December 31, 2014, the Company carried the following financial assets and (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of June 30, 2015 (Amounts in thousands) Level 1 Level 2 Level 3 Currency Forward Contracts $ 0 $ (3 ) $ 0 Interest-Rate Swap Contracts $ 0 $ (38 ) $ 0 Fair Value as of December 31, 2014 (Amounts in thousands) Level 1 Level 2 Level 3 Currency Forward Contracts $ 0 $ (38 ) $ 0 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | 12. Shareholders’ Equity As of June 30, 2015, the Company had 472,238 shares available for purchase under its existing share repurchase program. Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable securities laws through December 22, 2016. During the three months ended June 30, 2015, the Company repurchased no shares of common stock. During the six months ended June 30, 2015 the Company repurchased 12,654 shares of common stock under this program at an average price of $9.49 per share. Additionally, the Company purchased an additional 8,237 shares to satisfy employee tax obligations related to the vesting of performance shares at a share price of $9.74. During the three months ended June 30, 2014, the Company repurchased no shares of common stock. During the six months ended June 30, 2014, the Company repurchased 19,341 shares at a share price of $14.06 to satisfy employee tax obligations related to the vesting of performance shares. |
Revenue Concentration
Revenue Concentration | 6 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Revenue Concentration | 13. Revenue Concentration For the three months ended June 30, 2015, the Company had one client that exceeded 10% of total revenue (Accenture = 10.9%). For the three months ended June 30, 2014, the Company had two clients that exceeded 10% of total revenue (Accenture = 11.0% and CGI = 10.1%). For the six months ended June 30, 2015 and June 30, 2014 , the Company had one client that exceeded 10% of total revenues (Accenture = 11.9% and 10.7%), respectively. The Company’s top ten clients represented approximately 55% and 58% of total revenues for the three months ended June 30, 2015 and June 30, 2014, respectively. For the six months ended June 30, 2015 and June 30, 2014, the Company’s top ten clients represented approximately 57% and 60% of total revenues, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings Per Share The computation of basic earnings per share is based on the Company’s net income divided by the weighted average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options were exercised. The dilutive effect of stock options was calculated using the treasury stock method. For the three and six months ended June 30, 2015 and 2014, there were no anti-dilutive stock options excluded from the computation of diluted earnings per share. |
Severance Charges
Severance Charges | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Severance Charges | 15. Severance Charges In the three and six month periods ended June 30, 2015, the Company incurred no severance costs and $305,000 (pre-tax), respectively. The severance costs related to a change in sales leadership. For the six months ended June 30, 2014, the Company incurred no severance costs. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 16. Recently Issued Accounting Standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-03, “I nterest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The Company is evaluating the method of adoption and the impact of adoption of this ASU, but it does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASC Update No. 2014-09, “ Revenue from Contracts with Customers The Company is evaluating the method of adoption and the impact of the adoption of ASU, but does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In June 2014, the FASB issued Update 2014-12, Compensation—Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Description of Business and B23
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent Developments | Recent Developments On June 15, 2015, the Company completed the acquisition of Hudson Global’s U.S. IT staffing business (“Hudson IT”) as more fully described in Note 2 “Acquisition” of these Notes to the Condensed Consolidated Financial Statements. Hudson IT is a domestic IT staffing business with offices in Chicago, Boston, Tampa and Orlando. In support of this acquisition, the Company entered into an amendment to its existing loan agreement with PNC Bank, N.A. The amended terms included the addition of a $9 million term loan and a $3 million reduction to the Company’s existing credit facility for revolver credit loans and letters of credit. Other pertinent terms and conditions are more fully described in Note 8 “Credit Facility” of these Notes to the Condensed Consolidated Financial Statements. |
Description of Business | Description of Business We are a provider of IT staffing services. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services within business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; eBusiness solutions; mobile applications; and the implementation and support for cloud-based applications. We work with businesses and institutions with significant IT spending and recurring staffing needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. Our services span a broad range of industry verticals including: automotive; consumer products; education; financial services; government; healthcare; manufacturing; retail; technology; telecommunications; transportation; and utilities. |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements (the “Financial Statements”) have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2014, included in our Annual Report on Form 10-K filed with the SEC on March 20, 2015. Additionally, our operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that can be expected for the year ending December 31, 2015 or for any other period. |
Principles of Consolidation | Principles of Consolidation The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Critical Accounting Policies | Critical Accounting Policies Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2014 for a more detailed discussion of our significant accounting policies and critical accounting estimates. Except for Goodwill and Intangible Assets and Acquisitions, which are described below, there were no material changes to these critical accounting policies and estimates during the six months ended June 30, 2015. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Identifiable intangible assets are recorded at fair value when acquired in a purchase business combination. In connection with our acquisition of Hudson IT, intangible assets were recorded at their estimated fair value on June 15, 2015. Identifiable intangible assets consisted of client relationships, a covenant not-to-compete and a trade name and are being amortized using the straight-line method over their estimated useful lives ranging from 3 years to 12 years, as more fully described in Note 2 “Acquisition” of these Notes to the Condensed Consolidated Financial Statements. Other intangible assets not arising from business combinations are initially recorded at cost. |
Acquisitions | Acquisitions The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations. The guidance requires consideration given, including contingent consideration, assets acquired and liabilities assumed to be valued at their fair market values at the acquisition date. The guidance further provides that: (1) in-process research and development will be recorded at fair value as an indefinite-lived intangible asset; (2) acquisition costs will generally be expensed as incurred, (3) restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (4) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities assumed be recognized as goodwill. In accordance with ASC 805, any excess of fair value of acquired net assets, including identifiable intangibles assets, over the acquisition consideration results in a bargain purchase gain. Prior to recording a gain, the acquiring entity must reassess whether all acquired assets and assumed liabilities have been identified and recognized and perform re-measurements to verify that the consideration paid, assets acquired and liabilities assumed have been properly valued. The Hudson Global U.S. IT staffing business (“Hudson IT”) results are included in the Company’s results from their date of acquisition of June 15, 2015. We review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair market value. Excess purchase price over the fair values of net tangible assets and identifiable intangible assets acquired are recorded as goodwill. Goodwill is not amortized but is tested for impairment at least on an annual basis. If impairment is indicated, a write-down to fair value is recorded based on the excess of the carrying value of the asset over its fair market value. |
Segment Reporting | Segment Reporting The Company has one reportable segment in accordance with ASC Topic 280 “Disclosures About Segments of an Enterprise and Related Information”. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid | The following table summarizes the consideration paid for Hudson IT: (in thousands) Amounts Cash paid at Closing $ 16,987 Assumption of Current Liabilities (net of current assets) 13 Total Consideration $ 17,000 |
Schedule of Sources of Funds in Business Acquisition | The cash purchase price at closing was paid with funds obtained from the following sources: (in thousands) Amounts Cash balances on hand $ 2,000 Term loan facility 9,000 Revolving line of credit 5,987 Cash paid at Closing $ 16,987 |
Schedule of Valuation of Net Assets Acquired | The valuation of net assets acquired is as follows: (in thousands) Amounts Current Assets $ 18 Fixed Assets 6 Identifiable intangible assets: Client relationships 7,999 Covenant not-to-compete 319 Trade name 249 Total identifiable intangible assets 8,567 Goodwill 8,427 Current liabilities (31 ) Net Assets Acquired $ 16,987 |
Summary of Unaudited Pro Forma Results of Hudson IT | The following reflects the Company’s unaudited pro forma results had the results of Hudson IT been included for all periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 (Amounts in Thousands) (Amounts in Thousands) Revenue $ 35,532 $ 37,188 $ 70,094 $ 75,167 Net income $ 508 $ 1,403 $ 833 $ 2,742 Earnings per share - diluted $ 0.11 $ 0.31 $ 0.19 $ 0.62 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible assets | Intangible assets were comprised of the following as of June 30, 2015: As of June 30, (Amounts in thousands) Amortization Period Gross Carrying Accumulative Net Carrying Client relationships 12 $ 7,999 $ 27 $ 7,972 Covenant-not-to-compete 5 319 3 316 Trade name 3 249 4 245 Total Intangible Assets $ 8,567 $ 34 $ 8,533 |
Schedule of Estimated Amortization Expense | The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2015 through 2019 is as follows: Years Ended December 31, 2015 2016 2017 2018 2019 (Amounts in thousands) Amortization expense $ 441 $ 813 $ 813 $ 768 $ 730 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | The components of income before income taxes, as shown in the accompanying Condensed Consolidated Financial Statements, consisted of the following for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Amounts in thousands) (Amounts in thousands) Income before income taxes: Domestic $ 621 $ 1,433 $ 932 $ 2,835 Foreign — — — — Income before income taxes $ 621 $ 1,433 $ 932 $ 2,835 |
Provision for Income Taxes | The provision for income taxes, as shown in the accompanying Condensed Consolidated Financial Statements, consisted of the following for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Amounts in thousands) (Amounts in thousands) Current provision: Federal $ 252 $ 502 $ 430 $ 975 State 31 51 48 103 Total current provision 283 553 478 1,078 Deferred (benefit): Federal (38 ) (11 ) (107 ) (4 ) State (6 ) (2 ) (16 ) (1 ) Total deferred (benefit) (44 ) (13 ) (123 ) (5 ) Total provision for income taxes $ 239 $ 540 $ 355 $ 1,073 |
Reconciliation of Income Taxes | The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes for the three and six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Income taxes computed at the federal statutory rate $ 211 34.0 % $ 487 34.0 % State income taxes, net of federal tax benefit 25 4.0 49 3.4 Other – net 3 0.5 4 0.3 $ 239 38.5 % $ 540 37.7 % Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Income taxes computed at the federal statutory rate $ 317 34.0 % $ 964 34.0 % State income taxes, net of federal tax benefit 32 3.5 102 3.6 Other – net 6 0.6 7 0.2 $ 355 38.1 % $ 1,073 37.8 % |
Unrecognized Tax Benefits Related to Uncertain Tax Positions | A reconciliation of the beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions, including interest and penalties, are as follows: (Amounts in thousands) Six Months Ended June 30, 2015 Balance as of December 31, 2014 $ 138 Additions related to current period 16 Additions related to prior periods — Reductions related to prior periods — Balance as of June 30, 2015 $ 154 |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Hedge Transactions Qualifying for Hedge Accounting | Outstanding hedge transactions qualifying for hedge accounting as of June 30, 2015 (amounts in thousands): Maturity Date Ranges Rupee Strike Price Amount Net Unrealized Forward contracts USD: From: July 20, 2015 64.04 To: December 18, 2015 65.34 Total $ 1,018 $ (29 ) |
Effect of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income | The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income are as follows (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended June 30, 2015: Currency Forward Contracts $ (17 ) SG&A Expense $ (13 ) Other Income/(Expense) $ 44 Interest- Rate Swap Contract $ (38 ) Interest Expense $ (3 ) Interest Expense $ — For the Six Months Ended June 30, 2015: Currency Forward Contracts $ 12 SG&A Expense $ (17 ) Other Income/(Expense) $ 43 Interest- Rate Swap Contract $ (38 ) Interest Expense $ (3 ) Interest Expense $ — For the Three Months Ended June 30, 2014: Currency Forward Contracts $ (17 ) SG&A Expense $ 9 Other Income/(Expense) $ 34 For the Six Months Ended June 30, 2014: Currency Forward Contracts $ 35 SG&A Expense $ 4 Other Income/(Expense) $ 68 |
Information on Location and Amounts of Derivative Fair Values in Condensed Consolidated Balance Sheets | Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): June 30, 2015 December 31, 2014 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Currency Forward Contracts Other Current Liabilities $ 3 Other Current Liabilities $ 38 Interest-Rate Swap Contracts Other Current Liabilities $ 38 $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets at Fair Value Measured on Recurring Basis | At June 30, 2015 and December 31, 2014, the Company carried the following financial assets and (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of June 30, 2015 (Amounts in thousands) Level 1 Level 2 Level 3 Currency Forward Contracts $ 0 $ (3 ) $ 0 Interest-Rate Swap Contracts $ 0 $ (38 ) $ 0 Fair Value as of December 31, 2014 (Amounts in thousands) Level 1 Level 2 Level 3 Currency Forward Contracts $ 0 $ (38 ) $ 0 |
Description of Business and B29
Description of Business and Basis of Presentation - Additional Information (Detail) - Jun. 30, 2015 $ in Millions | USD ($)Segment |
Description Of Business And Basis Of Presentation [Line Items] | |
Reduction to existing credit facility | $ (3) |
Number of reportable segment | Segment | 1 |
Minimum [Member] | |
Description Of Business And Basis Of Presentation [Line Items] | |
Estimated useful life, intangible assets | 3 years |
Maximum [Member] | |
Description Of Business And Basis Of Presentation [Line Items] | |
Estimated useful life, intangible assets | 12 years |
Term Loan Facility [Member] | |
Description Of Business And Basis Of Presentation [Line Items] | |
Term loan facility | $ 9 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Jun. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||||
Revenue applicable to the acquired company | $ 29,305,000 | $ 27,656,000 | $ 56,365,000 | $ 56,340,000 | |
Net income applicable to the acquired company | 382,000 | $ 893,000 | 577,000 | $ 1,762,000 | |
Hudson IT [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 17,000,000 | ||||
Direct transaction costs related to acquisition | 549,000 | 599,000 | |||
Revenue applicable to the acquired company | 1,300,000 | 1,300,000 | |||
Net income applicable to the acquired company | $ 100,000 | $ 100,000 |
Acquisition - Summary of Consid
Acquisition - Summary of Consideration Paid (Detail) - USD ($) $ in Thousands | Jun. 15, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||
Cash paid at Closing | $ 16,987 | |
Hudson IT [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid at Closing | $ 16,987 | |
Assumption of Current Liabilities (net of current assets) | 13 | |
Total Consideration | $ 17,000 |
Acquisition - Summary of Source
Acquisition - Summary of Source of Funds (Detail) - USD ($) $ in Thousands | Jun. 15, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||
Cash paid at Closing | $ 16,987 | |
Term Loan Facility [Member] | ||
Business Acquisition [Line Items] | ||
Revolving line of credit | $ 9,000 | |
Revolving Line of Credit [Member] | ||
Business Acquisition [Line Items] | ||
Revolving line of credit | $ 4,900 | |
Hudson IT [Member] | ||
Business Acquisition [Line Items] | ||
Cash balances on hand | 2,000 | |
Cash paid at Closing | 16,987 | |
Hudson IT [Member] | Term Loan Facility [Member] | ||
Business Acquisition [Line Items] | ||
Revolving line of credit | 9,000 | |
Hudson IT [Member] | Revolving Line of Credit [Member] | ||
Business Acquisition [Line Items] | ||
Revolving line of credit | $ 5,987 |
Acquisition - Schedule of Valua
Acquisition - Schedule of Valuation of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 15, 2015 |
Identifiable intangible assets: | ||
Goodwill | $ 8,427 | |
Hudson IT [Member] | ||
Business Acquisition [Line Items] | ||
Current Assets | $ 18 | |
Fixed Assets | 6 | |
Identifiable intangible assets: | ||
Client relationships | 8,567 | |
Goodwill | 8,427 | |
Current liabilities | (31) | |
Net Assets Acquired | 16,987 | |
Hudson IT [Member] | Trade Name [Member] | ||
Identifiable intangible assets: | ||
Client relationships | 249 | |
Hudson IT [Member] | Covenant Not-to-Compete [Member] | ||
Identifiable intangible assets: | ||
Client relationships | 319 | |
Hudson IT [Member] | Client Relationships [Member] | ||
Identifiable intangible assets: | ||
Client relationships | $ 7,999 |
Acquisition - Summary of Unaudi
Acquisition - Summary of Unaudited Pro Forma Results of Hudson IT (Detail) - Hudson IT [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 35,532 | $ 37,188 | $ 70,094 | $ 75,167 |
Net income | $ 508 | $ 1,403 | $ 833 | $ 2,742 |
Earnings per share - diluted | $ 0.11 | $ 0.31 | $ 0.19 | $ 0.62 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 15, 2015 | |
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 8,427,000 | $ 8,427,000 | |||
Amortization expense | $ 34,000 | $ 0 | $ 34,000 | $ 0 | |
Minimum [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Estimated useful life, intangible assets | 3 years | ||||
Maximum [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Estimated useful life, intangible assets | 12 years | ||||
Hudson IT [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 8,427,000 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Components of Goodwill and Other Intangible Assets (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Goodwill and Intangible Assets [Line Items] | |
Total Intangible Assets, Gross Carrying Value | $ 8,567 |
Intangible Assets, Accumulated Amortization | 34 |
Total Intangible Assets, Net Carrying Value | $ 8,533 |
Client Relationships [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Amortization period | 12 years |
Intangible Assets, Gross Carrying Value | $ 7,999 |
Intangible Assets, Accumulated Amortization | 27 |
Intangible Assets, Net Carrying Value | $ 7,972 |
Covenant Not-to-Compete [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Amortization period | 5 years |
Intangible Assets, Gross Carrying Value | $ 319 |
Intangible Assets, Accumulated Amortization | 3 |
Intangible Assets, Net Carrying Value | $ 316 |
Trade Name [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Amortization period | 3 years |
Intangible Assets, Gross Carrying Value | $ 249 |
Intangible Assets, Accumulated Amortization | 4 |
Intangible Assets, Net Carrying Value | $ 245 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Intangible Liability Disclosure [Abstract] | |
Estimated aggregate amortization expense reminder of 2015 | $ 441 |
Estimated aggregate amortization expense for year ending 2016 | 813 |
Estimated aggregate amortization expense for year ending 2017 | 813 |
Estimated aggregate amortization expense for year ending 2018 | 768 |
Estimated aggregate amortization expense for year ending 2019 | $ 730 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | Jun. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contributions | $ 0 | $ 0 | ||
Hudson Employee Retirement Savings Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of company's matching contribution | 50.00% | |||
Percentage of employees eligible earnings for company's matching contribution | 6.00% | |||
Total contributions to the retirement plan | $ 1,000 | $ 1,000 |
Mastech Stock Incentive Plan -
Mastech Stock Incentive Plan - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2008 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||
Shares allocated for issuance to directors, officers and key personnel | 1,200,000 | |||||
Number of stock options granted | 18,000 | 0 | 18,000 | 0 | ||
Number of shares available for grant | 160,000 | 160,000 | 178,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 193,000 | $ 172,000 | ||
Number of shares issued related to exercise of stock options | 4,306 | 9,869 | 50,895 | 85,612 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 98,000 | $ 87,000 | $ 193,000 | $ 172,000 |
Credit Facility - Additional in
Credit Facility - Additional information (Detail) | Jun. 15, 2015USD ($)Installment | Jun. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | ||
Principle amount of term loan | $ (3,000,000) | |
Percentage of eligible accounts receivable | 85.00% | |
Percentage of eligible unbilled accounts | 60.00% | |
Number of monthly installment of term loan | Installment | 60 | |
Term loan, periodic payment | $ 150,000 | |
Commitment fee | 0.20% | |
Current borrowing capacity under line of credit facility | $ 8,300,000 | |
Debt outstanding amount | 1,800,000 | |
Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings amount | 4,900,000 | |
Debt outstanding amount | $ 4,900,000 | |
Revolving Line of Credit [Member] | Hudson IT [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings amount | 5,987,000 | |
Term Loan Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings amount | 9,000,000 | |
Term Loan Facility [Member] | Hudson IT [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings amount | $ 9,000,000 | |
Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
PNC Bank, N.A. [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowing capacity | $ 20,000,000 | |
Principle amount of term loan | $ 9,000,000 | |
Credit facility expiration date | Jun. 15, 2020 | |
Transaction cost | $ 75,000 | |
PNC Bank, N.A. [Member] | Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowing capacity | $ 17,000,000 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility percentage margin over base rate | 0.75% | |
Term loan percentage margin over base rate | 2.00% | |
Revolving credit facility percentage margin adjusted LIBOR rate | 1.75% | |
Term loan percentage margin adjusted LIBOR rate | 3.00% | |
Maximum [Member] | Revolving Line of Credit [Member] | Hudson IT [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowing capacity | $ 6,000,000 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility percentage margin over base rate | 0.25% | |
Term loan percentage margin over base rate | 1.50% | |
Revolving credit facility percentage margin adjusted LIBOR rate | 1.25% | |
Term loan percentage margin adjusted LIBOR rate | 2.50% |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income before income taxes: | ||||
Domestic | $ 621 | $ 1,433 | $ 932 | $ 2,835 |
Foreign | 0 | 0 | 0 | 0 |
Income from before income taxes | $ 621 | $ 1,433 | $ 932 | $ 2,835 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current provision: | ||||
Federal | $ 252 | $ 502 | $ 430 | $ 975 |
State | 31 | 51 | 48 | 103 |
Total current provision | 283 | 553 | 478 | 1,078 |
Deferred (benefit): | ||||
Federal | (38) | (11) | (107) | (4) |
State | (6) | (2) | (16) | (1) |
Total deferred (benefit) | (44) | (13) | (123) | (5) |
Total provision for income taxes | $ 239 | $ 540 | $ 355 | $ 1,073 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes computed at the federal statutory rate, Value | $ 211 | $ 487 | $ 317 | $ 964 |
State income taxes, net of federal tax benefit, Value | 25 | 49 | 32 | 102 |
Other - net, Value | 3 | 4 | 6 | 7 |
Total provision for income taxes | $ 239 | $ 540 | $ 355 | $ 1,073 |
Income taxes computed at the federal statutory rate, Rate | 34.00% | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal tax benefit, Rate | 4.00% | 3.40% | 3.50% | 3.60% |
Other - net, Rate | 0.50% | 0.30% | 0.60% | 0.20% |
Effective for income tax rate, Total | 38.50% | 37.70% | 38.10% | 37.80% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance as of December 31, 2014 | $ 138 |
Additions related to current period | 16 |
Additions related to prior periods | 0 |
Reductions related to prior periods | 0 |
Balance as of June 30, 2015 | $ 154 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Estimated amount of unrecognized tax benefits that could be reduced due to the expiration of the statute of limitations | $ 38,000 |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities - Additional Information (Detail) - Jun. 30, 2015 ₨ in Millions | USD ($)Installment | INR (₨)Installment |
Derivative [Line Items] | ||
Number of equal monthly installments | Installment | 6 | 6 |
Derivative instrument and hedging activities outstanding contract monthly installments amount | ₨ | ₨ 11 | |
Contract maturity period | 2015-12 | 2015-12 |
Losses included in other comprehensive income | $ 29,000 | |
Term Loan Facility [Member] | ||
Derivative [Line Items] | ||
Term loan facility | 9,000,000 | |
Interest Rate Swap [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability of fair value of the interest rate swap contracts | 38,000 | |
Designated as Hedging Instrument [Member] | Currency Hedge And Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Estimated amount of pretax gains from other comprehensive income (loss) | (67,000) | |
Interest Rate Risk Management [Member] | Term Loan Facility [Member] | ||
Derivative [Line Items] | ||
Term loan facility | 9,000,000 | |
Interest Rate Risk Management [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 5,000,000 | |
Number of equal monthly installments | Installment | 60 | 60 |
Fixed rate of interest in swap contracts | 1.515% | |
Interest Rate Risk Management [Member] | Interest Rate Swap [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability of fair value of the interest rate swap contracts | $ 38,000 |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities - Schedule of Outstanding Hedge Transactions Qualifying for Hedge Accounting (Detail) - Jun. 30, 2015 - Currency Forward Contracts [Member] $ in Thousands | USD ($)₨ / DerivativeInstrument |
Derivative [Line Items] | |
Amount | $ | $ 1,018 |
Net Unrealized Gain/(Loss) | $ | $ (29) |
Minimum [Member] | |
Derivative [Line Items] | |
Maturity Date From | Jul. 20, 2015 |
Rupee Strike Price Ranges | 64.04 |
Maximum [Member] | |
Derivative [Line Items] | |
Maturity Date From | Dec. 18, 2015 |
Rupee Strike Price Ranges | 65.34 |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) recognized in OCI on Derivatives | $ 29,000 | |||
Currency Forward Contracts [Member] | Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) recognized in OCI on Derivatives | $ (17,000) | $ (17,000) | 12,000 | $ 35,000 |
Currency Forward Contracts [Member] | Cash Flow Hedging Relationships [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) | (13,000) | 9,000 | (17,000) | 4,000 |
Currency Forward Contracts [Member] | Cash Flow Hedging Relationships [Member] | Other Income/(Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) recognized in Income (Expense) on Derivatives | 44,000 | $ 34,000 | 43,000 | $ 68,000 |
Interest Rate Swap [Member] | Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) recognized in OCI on Derivatives | (38,000) | (38,000) | ||
Interest Rate Swap [Member] | Cash Flow Hedging Relationships [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) | $ (3,000) | $ (3,000) |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities - Information on Location and Amounts of Derivative Fair Values in Consolidated Balance Sheets (Detail) - Other Current Liabilities [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Fair Value | $ 3 | $ 38 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Fair Value | $ 38 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets at Fair Value Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Level 1 [Member] | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | $ 0 | $ 0 |
Level 1 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | 0 | |
Level 2 [Member] | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | (3) | (38) |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | (38) | |
Level 3 [Member] | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | 0 | $ 0 |
Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets and (liabilities) | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||||
Number of shares authorized to be repurchased | 472,238 | 472,238 | ||
Shares purchased during period | 0 | 0 | 12,654 | |
Common stock repurchased average price | $ 9.49 | |||
Additional shares purchased to satisfy employee tax obligation | 8,237 | 19,341 | ||
Average share price for additional shares purchased | $ 9.74 | $ 14.06 |
Revenue Concentration - Additio
Revenue Concentration - Additional Information (Detail) - Clients | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Number of clients | 1 | 2 | 1 | 1 |
Minimum [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration of revenues by client | 10.00% | 10.00% | 10.00% | 10.00% |
Accenture [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | 10.90% | 11.00% | 11.90% | 10.70% |
CGI [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | 10.10% | |||
Top Ten Clients [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | 55.00% | 58.00% | 57.00% | 60.00% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities not included in computation of earnings per share | 0 | 0 | 0 | 0 |
Severance Charges - Additional
Severance Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Severance Charges [Abstract] | |||
Severance cost | $ 0 | $ 305,000 | $ 0 |