Mastech Digital (MHH) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	MHH
Entity Registrant Name	Mastech Digital, 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		4,498,579

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 33,100	$ 31,714
Cost of revenues	26,891	25,601
Gross profit	6,209	6,113
Selling, general and administrative expenses	5,806	5,978
Income from operations	403	135
Interest income (expense)	(102)	(116)
Other income (expense), net	21	(2)
Income before income taxes	322	17
Income tax expense	121	6
Net income	$ 201	$ 11
Earnings per share:
Basic	$ 0.04	$ 0
Diluted	$ 0.04	$ 0
Weighted average common shares outstanding:
Basic	4,499	4,353
Diluted	4,561	4,450

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 201	$ 11
Other comprehensive income (loss):
Total pretax net unrealized gain (loss)	11	(30)
Income tax expense (benefit)	5	(12)
Total other comprehensive income gain (loss), net of taxes	6	(18)
Total comprehensive income gain (loss)	207	(7)
Interest Rate Swap Contracts [Member]
Other comprehensive income (loss):
Total pretax net unrealized gain (loss)	$ 11	$ (30)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 876	$ 829
Accounts receivable, net of allowance for uncollectible accounts of $388 in 2017 and 2016	18,704	17,916
Unbilled receivables	4,673	3,186
Prepaid and other current assets	767	701
Prepaid income taxes	4	52
Total current assets	25,024	22,684
Equipment, enterprise software, and leasehold improvements, at cost:
Equipment	1,233	1,198
Enterprise software	645	645
Leasehold improvements	351	354
Total equipment, enterprise software, and leasehold improvements	2,229	2,197
Less - accumulated depreciation and amortization	(1,687)	(1,639)
Net equipment, enterprise software, and leasehold improvements	542	558
Deferred income taxes	246	254
Deferred financing costs, net	50	59
Non-current deposits	176	170
Goodwill	8,427	8,427
Intangible assets, net	7,110	7,313
Total assets	41,575	39,465
Current liabilities:
Current portion of long-term debt	1,800	1,800
Accounts payable	2,952	1,963
Accrued payroll and related costs	5,280	7,645
Other accrued liabilities	592	653
Deferred revenue	85	196
Total current liabilities	10,709	12,257
Long-term liabilities:
Long-term debt, less current portion	11,480	8,136
Total liabilities	22,189	20,393
Commitments and contingent liabilities (Note 3)
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 5,317,148 shares issued as of March 31, 2017 and as of December 31, 2016	53	53
Additional paid-in-capital	13,970	13,863
Retained earnings	9,498	9,297
Accumulated other comprehensive loss	(1)	(7)
Treasury stock, at cost; 818,569 shares as of March 31, 2017 and December 31, 2016	(4,134)	(4,134)
Total shareholders' equity	19,386	19,072
Total liabilities and shareholders' equity	$ 41,575	$ 39,465

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for uncollectible accounts	$ 388	$ 388
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	5,317,148	5,317,148
Treasury stock, shares	818,569	818,569

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING ACTIVITIES:
Net income	$ 201	$ 11
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	252	255
Interest amortization of deferred financing costs	9	10
Stock-based compensation expense	107	115
Deferred income taxes, net	8	(275)
Loss on disposition of fixed assets	4
Working capital items:
Accounts receivable and unbilled receivables	(2,275)	(1,670)
Prepaid and other current assets	(23)	(138)
Accounts payable	989	160
Accrued payroll and related costs	(2,365)	(683)
Other accrued liabilities	(50)	(594)
Deferred revenue	(111)	(64)
Net cash flows (used in) operating activities	(3,254)	(2,873)
INVESTING ACTIVITIES:
Payment for non-current deposits	(6)
Capital expenditures	(37)
Net cash flows (used in) investing activities	(43)
FINANCING ACTIVITIES:
Borrowings on revolving credit facility, (net)	3,794	3,305
(Repayments) on term loan facility	(450)	(450)
Net cash flows provided by financing activities	3,344	2,855
Net change in cash and cash equivalents	47	(18)
Cash and cash equivalents, beginning of period	829	848
Cash and cash equivalents, end of period	$ 876	$ 830

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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 Description of Business We are a provider of IT staffing and digital transformation services. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services within business intelligence / data warehousing; service oriented architecture; web services; enterprise resource planning & customer resource management; eBusiness solutions; mobile applications; data management and analytics; and the implementation and support for cloud-based applications. We work with businesses and institutions with significant IT spending and recurring staffing service 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. Accounting Principles The accompanying 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, 2016, included in our Annual Report on Form 10-K 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. Reclassification As Discussed in Note 14, Recently Issued Accounting Standards, the Company adopted ASU 2015-17 non-current non-current 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 and Estimates” in our Annual Report on Form 10-K Segment Reporting The Company has one reportable segment in accordance with ASC Topic 280 “Disclosures About Segments of an Enterprise and Related Information”.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, net	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets, net	2. Goodwill and Other Intangible Assets, net Goodwill related to our June 15, 2015 acquisition of Hudson Global Resource Management’s U.S. IT staffing business (“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 March 31, 2017: As of March 31, 2017 (Amounts in thousands) Amortization Period (In Years) Gross Carrying Value Accumulative Amortization Net Carrying Value Client relationships 12 $ 7,999 $ 1,193 $ 6,806 Covenant-not-to-compete 5 319 116 203 Trade name 3 249 148 101 Total Intangible Assets $ 8,567 $ 1,457 $ 7,110 Amortization expense for the three month period ended March 31, 2017 and 2016 was $203,000 for both periods and is included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2017 through 2021 is as follows: Years Ended December 31, 2017 2018 2019 2020 2021 (Amounts in thousands) Amortization expense $ 813 $ 769 $ 731 $ 696 $ 667

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	3. Commitments and Contingencies Lease Commitments The Company rents certain office space and equipment under non-cancelable 10-K 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	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plan	4. 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

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation In 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 1,400,000 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 months ended March 31, 2017, the Company granted no shares under the Plan. During the three months ended March 31, 2016 the Company granted stock options to purchase 250,000 shares of Common Stock. As of March 31, 2017 and December 31, 2016, there were 114,000 shares in both periods available for future grant under the Plan. Stock-based compensation expense was $107,000 and $115,000 for the three month periods ended March 31, 2017 and 2016 respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2017 and 2016, the Company issued no shares related to the exercise of stock options and vesting of restricted shares.

Credit Facility

Credit Facility	3 Months Ended
	Mar. 31, 2017
Text Block [Abstract]
Credit Facility	6. 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 principal amount of $9 million with an expiration date of June 15, 2020; (3) the approval of the Company’s acquisition of Hudson IT; and (4) an 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, 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 installments, 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 Company has pledged substantially all of its assets in support of the credit facility. 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 March 31, 2017, the Company was in compliance with 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 as interest expense over the lives of the facilities. Debt financing costs of $50,000 and $59,000 (net of amortization) as of March 31, 2017 and December 31, 2016, respectively, are presented as long-term assets in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2017, the Company’s outstanding borrowings under the credit facility for revolving credit loans totaled $7.4 million and unused borrowing capacity available was $9.6 million. The Company’s outstanding borrowings under the term loan were $5.9 million at March 31, 2017. 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 $7.4 million outstanding debt balance at March 31, 2017 as long-term.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The components of income before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (Amounts in thousands) Income before income taxes: Domestic $ 197 $ (102 ) Foreign 125 119 Income before income taxes $ 322 $ 17 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 and reports such income as “Foreign” in the above table. No provision for U.S. income taxes has been made for the undistributed earnings of its Indian subsidiary as of March 31, 2017, 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 Financial Statements, consisted of the following for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (Amounts in Thousands) Current provision: Federal $ 67 $ 195 State 8 34 Foreign 42 40 Total current provision 117 269 Deferred provision (benefit): Federal 3 (229 ) State 1 (34 ) Foreign — — Total deferred provision (benefit) 4 (263 ) Total provision for income taxes $ 121 $ 6 The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes for the three months ended March 31, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Income taxes computed at the federal statutory rate $ 109 34.0 % $ 5 34.0 % State income taxes, net of federal tax benefit 9 2.8 — — Other – net 3 0.8 1 4.0 $ 121 37.6 % $ 6 38.0 % 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) Three Months Ended March 31, 2017 Balance as of December 31, 2016 $ 128 Additions related to current period — Additions related to prior periods — Reductions related to prior periods — Balance as of March 31, 2017 $ 128 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 $33,000 during the next twelve months due to the expiration of the statutes of limitation.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	8. Derivative Instruments and Hedging Activities Interest Rate Risk Management Concurrent with the Company’s June 15, 2015 borrowings under the $9 million term loan facility, the Company entered into a five-year interest-rate swap to convert the debt’s variable interest rate to a fixed rate of 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 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 Relationships Amount of Gain / (Loss) recognized in OCI on Derivatives Location of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) Amount of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) Location of Gain / (Loss) reclassified in Income (Expense) on Derivatives Amount of Gain / (Loss) recognized in Income (Expense) on Derivatives (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended March 31, 2017: Interest-Rate Swap Contracts $ 11 Interest Expense $ (6 ) Interest Expense $ (0 ) For the Three Months Ended March 31, 2016: Interest-Rate Swap Contracts $ (30 ) Interest Expense $ (11 ) Interest Expense $ (0 ) Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): March 31, 2017 December 31, 2016 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current Liabilities $ 1 Other Current Liabilities $ 12 The estimated amount of pretax losses as of March 31, 2017 that is expected to be reclassified from other comprehensive income (loss) into earnings within the next 12 months is approximately ($25,000).

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	9. Fair Value Measurements The Company has adopted the provisions of ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), related to certain financial and nonfinancial assets and liabilities. ASC 820 establishes the authoritative definition of fair value; sets out a framework for measuring fair value; and expands the required disclosures about fair value measurements. The valuation techniques required by ASC 820 are based on observable and unobservable inputs using the following three-tier hierarchy: • 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 March 31, 2017 and December 31, 2016, the Company carried the following financial assets and (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of March 31, 2017 Level 1 Level 2 Level 3 Total (Amounts in thousands) Interest-Rate Swap Contracts $ 0 $ (1 ) $ 0 $ (1 ) Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total (Amounts in thousands) Interest-Rate Swap Contracts $ 0 $ (12 ) $ 0 $ (12 ) The fair value of interest rate swap contracts are based on quoted prices for similar instruments from a commercial bank, and therefore, the fair value measurement is considered to be within level 2.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Shareholders' Equity	10. Shareholders’ Equity The Company had a Share Repurchase Program in place that expired on December 22, 2016. Accordingly, during the three months ended March 31, 2017 no shares were repurchased under a share repurchase program. During the three months ended March 31, 2016, the Company did not repurchase any shares under this program.

Revenue Concentration

Revenue Concentration	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Revenue Concentration	11. Revenue Concentration For the three months ended March 31, 2017, the Company had one client (CGI = 13%) that exceeded 10% of total revenues. For the three months ended March 31, 2016, the Company had no clients that exceeded 10% of total revenues. The Company’s top ten clients represented approximately 47% and 42% of total revenues for the three months ended March 31, 2017 and 2016, respectively.

Earning Per Share

Earning Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earning Per Share	12. Earning 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 reflect 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 months ended March 31, 2017, there were 250,000 anti-dilutive stock options excluded from the computation of diluted earnings per share. For the three months ended March 31, 2016, there were 4,759 anti-dilutive stock options excluded from the computation of diluted earnings per share.

Severance Charges

Severance Charges	3 Months Ended
	Mar. 31, 2017
Text Block [Abstract]
Severance Charges	13. Severance Charges During the three month period ending March 31, 2017, the Company incurred no severance costs. During the three months ended March 31, 2016 the Company incurred severance costs of $780,000 (pre-tax)

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	14. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, 2016-08, 2016-10, 2016-12 2016-20 2014-09 non-cash In November 2015, the FASB issued ASU 2015-17, 2015-17 non-current In January 2016, the FASB issued ASU 2016-01, 825-10) 2016-01 In February 2016, the FASB issued ASU No. 2016-02, 2016-02 2016-02 right-of-use 2016-02 2016-02 2016-02 In March, 2016, the FASB issued ASU 2016-09 In August 2016, the FASB issued ASU 2016-15 In January 2017, the FASB issued ASU 2017-04, 2017-04 2017-04 A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any, that the implementation of such proposed standards would have on the Company’s consolidated financial statements.

Description of Business and B21

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Description of Business	Description of Business We are a provider of IT staffing and digital transformation services. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services within business intelligence / data warehousing; service oriented architecture; web services; enterprise resource planning & customer resource management; eBusiness solutions; mobile applications; data management and analytics; and the implementation and support for cloud-based applications. We work with businesses and institutions with significant IT spending and recurring staffing service 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.
Accounting Principles	Accounting Principles The accompanying 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, 2016, included in our Annual Report on Form 10-K
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.
Reclassification	Reclassification As Discussed in Note 14, Recently Issued Accounting Standards, the Company adopted ASU 2015-17 non-current non-current
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 and Estimates” in our Annual Report on Form 10-K
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”.

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets, net (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Identifiable Intangible assets	Intangible assets were comprised of the following as of March 31, 2017: As of March 31, 2017 (Amounts in thousands) Amortization Period (In Years) Gross Carrying Value Accumulative Amortization Net Carrying Value Client relationships 12 $ 7,999 $ 1,193 $ 6,806 Covenant-not-to-compete 5 319 116 203 Trade name 3 249 148 101 Total Intangible Assets $ 8,567 $ 1,457 $ 7,110
Schedule of Estimated Amortization Expense	The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2017 through 2021 is as follows: Years Ended December 31, 2017 2018 2019 2020 2021 (Amounts in thousands) Amortization expense $ 813 $ 769 $ 731 $ 696 $ 667

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Components of Income Before Income Taxes	The components of income before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (Amounts in thousands) Income before income taxes: Domestic $ 197 $ (102 ) Foreign 125 119 Income before income taxes $ 322 $ 17
Provision for Income Taxes	The provision for income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (Amounts in Thousands) Current provision: Federal $ 67 $ 195 State 8 34 Foreign 42 40 Total current provision 117 269 Deferred provision (benefit): Federal 3 (229 ) State 1 (34 ) Foreign — — Total deferred provision (benefit) 4 (263 ) Total provision for income taxes $ 121 $ 6
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 months ended March 31, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Income taxes computed at the federal statutory rate $ 109 34.0 % $ 5 34.0 % State income taxes, net of federal tax benefit 9 2.8 — — Other – net 3 0.8 1 4.0 $ 121 37.6 % $ 6 38.0 %
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) Three Months Ended March 31, 2017 Balance as of December 31, 2016 $ 128 Additions related to current period — Additions related to prior periods — Reductions related to prior periods — Balance as of March 31, 2017 $ 128

Derivative Instruments and He24

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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 Relationships Amount of Gain / (Loss) recognized in OCI on Derivatives Location of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) Amount of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense) Location of Gain / (Loss) reclassified in Income (Expense) on Derivatives Amount of Gain / (Loss) recognized in Income (Expense) on Derivatives (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended March 31, 2017: Interest-Rate Swap Contracts $ 11 Interest Expense $ (6 ) Interest Expense $ (0 ) For the Three Months Ended March 31, 2016: Interest-Rate Swap Contracts $ (30 ) Interest Expense $ (11 ) Interest Expense $ (0 )
Information on Location and Amounts of Derivative Fair Values in Consolidated Balance Sheets	Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): March 31, 2017 December 31, 2016 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current Liabilities $ 1 Other Current Liabilities $ 12

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Summary of Financial Assets and (Liabilities) at Fair Value Measured on Recurring Basis	At March 31, 2017 and December 31, 2016, the Company carried the following financial assets and (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of March 31, 2017 Level 1 Level 2 Level 3 Total (Amounts in thousands) Interest-Rate Swap Contracts $ 0 $ (1 ) $ 0 $ (1 ) Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total (Amounts in thousands) Interest-Rate Swap Contracts $ 0 $ (12 ) $ 0 $ (12 )

Description of Business and B26

Description of Business and Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)Segment	Dec. 31, 2016USD ($)
Significant Accounting Policies [Line Items]
Deferred income taxes, net non-current deferred tax assets	$ 246,000	$ 254,000
Number of reportable segment | Segment	1
Accounting Standards Update 2015-17 [Member]
Significant Accounting Policies [Line Items]
Deferred income taxes, non-current deferred tax liabilities		26,000
Deferred income taxes, current deferred tax assets		280,000
Deferred income taxes, net non-current deferred tax assets		$ 254,000

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Jun. 15, 2015
Goodwill and Intangible Assets [Line Items]
Goodwill	$ 8,427,000		$ 8,427,000
Amortization expense	$ 203,000	$ 203,000
Hudson IT [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill				$ 8,427,000

Goodwill and Other Intangible28

Goodwill and Other Intangible Assets - Components of Identifiable Intangible assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets [Line Items]
Total Intangible Assets, Gross Carrying Value	$ 8,567
Intangible Assets, Accumulated Amortization	1,457
Total Intangible Assets, Net Carrying Value	$ 7,110	$ 7,313
Client Relationships [Member]
Goodwill and Intangible Assets [Line Items]
Amortization Period (In Years)	12 years
Intangible Assets, Gross Carrying Value	$ 7,999
Intangible Assets, Accumulated Amortization	1,193
Intangible Assets, Net Carrying Value	$ 6,806
Covenant Not-to-Compete [Member]
Goodwill and Intangible Assets [Line Items]
Amortization Period (In Years)	5 years
Intangible Assets, Gross Carrying Value	$ 319
Intangible Assets, Accumulated Amortization	116
Intangible Assets, Net Carrying Value	$ 203
Trade Name [Member]
Goodwill and Intangible Assets [Line Items]
Amortization Period (In Years)	3 years
Intangible Assets, Gross Carrying Value	$ 249
Intangible Assets, Accumulated Amortization	148
Intangible Assets, Net Carrying Value	$ 101

Goodwill and Other Intangible29

Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Intangible Liability Disclosure [Abstract]
Estimated aggregate amortization expense for year ending 2017	$ 813
Estimated aggregate amortization expense for year ending 2018	769
Estimated aggregate amortization expense for year ending 2019	731
Estimated aggregate amortization expense for year ending 2020	696
Estimated aggregate amortization expense for year ending 2021	$ 667

Employee Benefit Plan - Additio

Employee Benefit Plan - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	$ 30,000	$ 27,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares allocated for issuance to directors, officers and key personnel				1,400,000
Shares available for future grants	114,000		114,000
Stock-based compensation expense	$ 107	$ 115
Number of shares issued related to exercise of stock options	0	0
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	250,000

Credit Facility - Additional in

Credit Facility - Additional information (Detail)	Jun. 15, 2015USD ($)Installments	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 14, 2015USD ($)
Line of Credit Facility [Line Items]
Percentage of eligible accounts receivable	85.00%
Percentage of eligible unbilled accounts	60.00%
Number of monthly installments of term loan | Installments	60
Term loan, periodic payment	$ 150,000
Commitment fee	0.20%
Debt financing costs		$ 50,000	$ 59,000
Current borrowing capacity under line of credit facility		9,600,000
Long term debt		11,480,000	8,136,000
Long Term Assets [Member]
Line of Credit Facility [Line Items]
Debt financing costs		50,000	$ 59,000
Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings amount		7,400,000
Long term debt		7,400,000
Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings amount		$ 5,900,000
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
Transaction cost	$ 75,000
PNC Bank, N.A. [Member] | Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 17,000,000
Credit facility expiration date	Jun. 15, 2018
PNC Bank, N.A. [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 9,000,000
Credit facility expiration date	Jun. 15, 2020
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]
Outstanding borrowings amount	$ 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
	Mar. 31, 2017	Mar. 31, 2016
Income before income taxes:
Domestic	$ 197	$ (102)
Foreign	125	119
Income before income taxes	$ 322	$ 17

Income Taxes - Provision for In

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Current provision:
Federal	$ 67	$ 195
State	8	34
Foreign	42	40
Total current provision	117	269
Deferred provision (benefit):
Federal	3	(229)
State	1	(34)
Foreign	0	0
Total deferred provision (benefit)	4	(263)
Total provision for income taxes	$ 121	$ 6

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes computed at the federal statutory rate, Value	$ 109	$ 5
State income taxes, net of federal tax benefit, Value	9
Other - net, Value	3	1
Total provision for income taxes	$ 121	$ 6
Income taxes computed at the federal statutory rate, Rate	34.00%	34.00%
State income taxes, net of federal tax benefit, Rate	2.80%
Other - net, Rate	0.80%	4.00%
Effective for income tax rate, Total	37.60%	38.00%

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Beginning balance	$ 128
Additions related to current period	0
Additions related to prior periods	0
Reductions related to prior periods	0
Ending balance	$ 128

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Estimated amount of unrecognized tax benefits that could be reduced due to the expiration of the statute of limitations	$ 33,000

Derivative Instruments and He38

Derivative Instruments and Hedging Activities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)Installment	Dec. 31, 2016USD ($)	Jun. 15, 2015USD ($)
Interest Rate Swap Contracts [Member] | Other Current Liabilities [Member]
Derivative [Line Items]
Liability of fair value of the interest rate swap contracts	$ 1,000	$ 12,000
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 Contracts [Member]
Derivative [Line Items]
Notional amount	$ 5,000,000
Number of equal monthly installments | Installment	60
Fixed rate of interest in swap contracts	1.515%
Interest Rate Risk Management [Member] | Interest Rate Swap Contracts [Member] | Other Current Liabilities [Member]
Derivative [Line Items]
Liability of fair value of the interest rate swap contracts	$ 1,000
Designated as Hedging Instrument [Member] | Currency Hedge and Interest Rate Swap [Member]
Derivative [Line Items]
Estimated amount of pretax (losses) from other comprehensive income (loss)	$ (25,000)

Derivative Instruments and He39

Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - Interest Rate Swap Contracts [Member] - Cash Flow Hedging Relationships [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain / (Loss) recognized in OCI on Derivatives	$ 11	$ (30)
Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain / (Loss) reclassified from Accumulated OCI to Income (Expense)	(6)	(11)
Amount of Gain / (Loss) recognized in Income (Expense) on Derivatives	$ 0	$ 0

Derivative Instruments and He40

Derivative Instruments and Hedging Activities - Information on Location and Amounts of Derivative Fair Values in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Interest Rate Swap Contracts [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Fair Value	$ 1	$ 12

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets and (Liabilities) at Fair Value Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - Interest Rate Swap Contracts [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets and (liabilities)	$ (1)	$ (12)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets and (liabilities)	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets and (liabilities)	(1)	(12)
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets and (liabilities)	$ 0	$ 0

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Shares purchased during period	0	0
Expiration period of stock repurchase program	Dec. 22, 2016

Revenue Concentration - Additio

Revenue Concentration - Additional Information (Detail) - Clients	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue, Major Customer [Line Items]
Number of clients	1	0
Top Ten Clients [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	47.00%	42.00%

Earnings per Share - Additional

Earnings per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Anti-dilutive securities not included in computation of earnings per share	250,000	4,759

Severance Charges - Additional

Severance Charges - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Severance Charges [Abstract]
Severance cost	$ 0	$ 780,000

Recently Issued Accounting St46

Recently Issued Accounting Standards - Additional Information (Detail) $ in Millions	Mar. 31, 2017USD ($)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Contractual obligations on lease arrangements	$ 3.2