Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MHH | ||
Entity Registrant Name | Mastech Digital, Inc. | ||
Entity Central Index Key | 0001437226 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 11,000,946 | ||
Entity Public Float | $ 31,758,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,294 | $ 2,478 |
Accounts receivable, net of allowance for uncollectible accounts of $408 in 2018 and $398 in 2017 | 28,913 | 22,876 |
Unbilled receivables | 9,167 | 7,786 |
Prepaid and other current assets | 1,321 | 1,533 |
Total current assets | 40,695 | 34,673 |
Equipment, enterprise software, and leasehold improvements, at cost: | ||
Equipment | 1,538 | 1,395 |
Enterprise software | 2,096 | 1,986 |
Leasehold improvements | 464 | 365 |
Total equipment, enterprise software, and leasehold improvements | 4,098 | 3,746 |
Less - accumulated depreciation and amortization | (1,890) | (1,847) |
Net equipment, enterprise software, and leasehold improvements | 2,208 | 1,899 |
Deferred income taxes | 297 | 468 |
Non-current deposits | 540 | 255 |
Goodwill, net of impairment | 26,106 | 35,844 |
Intangible assets, net | 22,738 | 25,465 |
Total assets | 92,584 | 98,604 |
Current liabilities: | ||
Current portion of long-term debt | 4,575 | 4,003 |
Accounts payable | 4,127 | 5,028 |
Accrued payroll and related costs | 7,728 | 8,969 |
Other accrued liabilities | 1,218 | 1,679 |
Deferred revenue | 258 | 430 |
Total current liabilities | 17,906 | 20,109 |
Long-term liabilities: | ||
Long-term debt, less current portion, net | 34,129 | 34,149 |
Contingent consideration liability | 6,069 | 17,125 |
Long-term accrued income taxes | 204 | 68 |
Total liabilities | 58,308 | 71,451 |
Commitments and contingent liabilities (Note 7) | ||
Shareholders' equity: | ||
Preferred Stock, no par value; 20,000,000 shares authorized; none outstanding | ||
Common Stock, par value $.01; 250,000,000 shares authorized and 12,636,332 shares issued as of December 31, 2018 and 12,562,470 shares issued as of December 31, 2017 | 126 | 126 |
Additional paid-in-capital | 20,829 | 20,241 |
Retained earnings | 17,614 | 10,923 |
Accumulated other comprehensive income (loss) | (119) | 17 |
Treasury stock, at cost; 1,643,846 shares as of December 31, 2018 and 1,641,272 as of December 31, 2017 | (4,174) | (4,154) |
Total shareholders' equity | 34,276 | 27,153 |
Total liabilities and shareholders' equity | $ 92,584 | $ 98,604 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectible accounts | $ 408 | $ 398 |
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 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 12,636,332 | 12,562,470 |
Treasury stock, shares | 1,643,846 | 1,641,272 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 177,164 | $ 147,882 | $ 132,008 |
Cost of revenues | 134,636 | 116,253 | 105,711 |
Gross profit | 42,528 | 31,629 | 26,297 |
Selling, general and administrative expenses: | |||
Operating expenses | 32,221 | 27,548 | 21,790 |
Impairment of goodwill | 9,738 | ||
Revaluation of contingent consideration liability | (11,056) | ||
Total selling, general and administrative expenses | 30,903 | 27,548 | 21,790 |
Income from operations | 11,625 | 4,081 | 4,507 |
Interest income (expense), net | (2,171) | (1,131) | (462) |
Other income (expense), net | (40) | (2) | (25) |
Income before income taxes | 9,414 | 2,948 | 4,020 |
Income tax expense | 2,723 | 1,322 | 1,500 |
Net income | $ 6,691 | $ 1,626 | $ 2,520 |
Earnings per share: | |||
Basic | $ 0.61 | $ 0.16 | $ 0.29 |
Diluted | $ 0.60 | $ 0.16 | $ 0.28 |
Weighted average common shares outstanding: | |||
Basic | 10,950 | 9,924 | 8,786 |
Diluted | 11,161 | 9,998 | 8,964 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 6,691 | $ 1,626 | $ 2,520 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (207) | 10 | |
Total pretax net unrealized gain (loss) | (111) | 31 | 19 |
Income tax expense | 25 | 7 | 7 |
Total other comprehensive income (loss), net of taxes | (136) | 24 | 12 |
Total comprehensive income | 6,555 | 1,650 | 2,532 |
Interest Rate Swap Contracts [Member] | |||
Other comprehensive income (loss): | |||
Net unrealized gain on interest rate swap contracts | $ 96 | $ 21 | $ 19 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balances at Dec. 31, 2015 | $ 15,803 | $ 104 | $ 13,062 | $ 6,777 | $ (4,121) | $ (19) |
Net income | 2,520 | 2,520 | ||||
Other comprehensive income (loss), net of taxes | 12 | 12 | ||||
Increase in excess tax benefits related to stock-based compensation | 241 | 241 | ||||
Stock-based compensation expense | 408 | 408 | ||||
Stock options exercised | 101 | 2 | 99 | |||
Purchase of treasury stock | (13) | (13) | ||||
Ending Balances at Dec. 31, 2016 | 19,072 | 106 | 13,810 | 9,297 | (4,134) | (7) |
Net income | 1,626 | 1,626 | ||||
Proceeds from issuance of common stock | 6,000 | 18 | 5,982 | |||
Other comprehensive income (loss), net of taxes | 24 | 24 | ||||
Stock-based compensation expense | 381 | 381 | ||||
Stock options exercised | 70 | 2 | 68 | |||
Purchase of treasury stock | (20) | (20) | ||||
Ending Balances at Dec. 31, 2017 | 27,153 | 126 | 20,241 | 10,923 | (4,154) | 17 |
Net income | 6,691 | 6,691 | ||||
Other comprehensive income (loss), net of taxes | (136) | (136) | ||||
Stock-based compensation expense | 470 | 470 | ||||
Stock options exercised | 118 | 118 | ||||
Purchase of treasury stock | (20) | (20) | ||||
Ending Balances at Dec. 31, 2018 | $ 34,276 | $ 126 | $ 20,829 | $ 17,614 | $ (4,174) | $ (119) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||
Net income | $ 6,691 | $ 1,626 | $ 2,520 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,182 | 1,942 | 1,016 |
Bad debt expense | 10 | 10 | 75 |
Interest amortization of deferred financing costs | 100 | 99 | 38 |
Stock-based compensation expense | 470 | 381 | 408 |
Deferred income taxes, net | 171 | (234) | 55 |
Impairment of goodwill | 9,738 | ||
Revaluation of contingent consideration liability | (11,056) | ||
Loss on disposition of fixed assets | 7 | 4 | |
Long-term accrued income taxes | 136 | 68 | |
Working capital items: | |||
Accounts receivable and unbilled receivables | (7,428) | (3,322) | (1,987) |
Prepaid and other current assets | 283 | (618) | (173) |
Accounts payable | (901) | 1,685 | (250) |
Accrued payroll and related costs | (1,241) | 472 | 1,680 |
Other accrued liabilities | (461) | 1,000 | (945) |
Deferred revenue | (172) | 234 | (145) |
Net cash flows provided by (used in) operating activities | (471) | 3,347 | 2,292 |
INVESTING ACTIVITIES: | |||
Acquisition of InfoTrellis, Inc. (net of cash acquired and issuance of contingent consideration) | (34,799) | ||
Recovery of (payments for) non-current deposits | (285) | (8) | 67 |
Capital expenditures | (771) | (1,127) | (105) |
Net cash flows (used in) investing activities | (1,056) | (35,934) | (38) |
FINANCING ACTIVITIES: | |||
Borrowing (repayments) on revolving credit facility, (net) | 4,526 | 5,364 | (802) |
Borrowing on term loan facility | 30,500 | ||
(Repayments) on term loan facility | (4,003) | (7,253) | (1,800) |
Proceeds from the issuance of common stock | 6,000 | ||
Payment of deferred financing costs | (71) | (435) | |
Purchase of treasury stock | (20) | (20) | (13) |
Proceeds from the exercise of stock options | 118 | 70 | 101 |
Increase in excess tax benefits related to stock options / restricted shares, net | 241 | ||
Net cash flows provided by (used in) financing activities | 550 | 34,226 | (2,273) |
Effect of exchange rate changes on cash and cash equivalents | (207) | 10 | |
Net change in cash and cash equivalents | (1,184) | 1,649 | (19) |
Cash and cash equivalents, beginning of period | 2,478 | 829 | 848 |
Cash and cash equivalents, end of period | 1,294 | 2,478 | 829 |
SUPPLEMENTAL DISCLOSURE: | |||
Cash payments for interest expense | 2,060 | 925 | 430 |
Cash payments for income taxes | $ 2,031 | 1,506 | $ 2,304 |
NON-CASH TRANSACTIONS: | |||
Capital expenditures in accounts payable | $ 312 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies: Basis of Presentation References in this Annual Report on Form 10-K Description of Business We are a provider of Digital Transformation IT Services. Our portfolio of offerings include data and analytics services; other digital transformation services such as Salesforce.com and Digital Learning services; and IT staffing services that span across digital and mainstream technologies. Reflective of our 2017 acquisition of the services division of Canada-based InfoTrelllis, Inc., we have added specialized capabilities in delivering data and analytics services to our customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Big Data, Analytics and Digital Transformation, with such services delivered using on-site Our IT staffing business combines technical expertise with business process experience to deliver a broad range of staffing services in digital and mainstream technologies. Our digital technologies include data management, analytics, cloud, mobility, social and artificial intelligence. 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. Recent Developments On July 24, 2018, the Company’s Board of Directors declared a two-for-one Accounting Principles The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents are defined as cash and highly liquid debt investments with maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates market value. Accounts Receivable and Unbilled Receivables The Company extends credit to clients based upon management’s assessment of their creditworthiness. A substantial portion of the Company’s revenue, and the resulting accounts receivable, are from Fortune 1000 companies, major systems integrators and other staffing organizations. The Company does not generally charge interest on delinquent accounts receivable. Unbilled receivables represent amounts recognized as revenues based on services performed and, in accordance with the terms of the client contract, will be invoiced in a subsequent period. See Note 2 “Revenue from Contracts with Customers” for futher details. Allowance for Uncollectible Accounts Accounts receivable are reviewed periodically to determine the probability of loss. The Company records an allowance for uncollectible accounts when it is probable that the related receivable balance will not be collected based on historical collection experience, client-specific collection issues, and other matters the Company identifies in its collection monitoring. The Allowance for Uncollectible Accounts was $408,000 and $398,000 at December 31, 2018 and 2017, respectively. There were $10,000, $10,000 and $75,000 of bad debt expense charges for the years ended December 31, 2018, 2017 and 2016, respectively, which amounts are reflected in the Consolidated Statements of Operations. Equipment, Enterprise Software and Leasehold Improvements Equipment, enterprise software and leasehold improvements are stated at historical cost. The Company provides for depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of (a) the remaining term of the lease or (b) the estimated useful life of the improvements. Repairs and maintenance, which do not extend the useful life of the respective assets, are charged to expense as incurred. Upon disposal, assets and related accumulated depreciation are removed from the Company’s accounts and the resulting gains or losses are reflected in the Company’s Consolidated Statement of Operations. The estimated useful lives of depreciable assets are primarily as follows: Laptop Computers 18 months Equipment 3-5 years Enterprise Software 3-5 years The Company capitalizes certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing and installation activities. Capitalized costs include only external direct cost of material and services consumed in developing or obtaining internal-use internal-use The Company recently implemented new enterprise software applications to its backbone systems environment. As of December 31, 2018 and December 31, 2017, the Company has capitalized $1.8 million and $1.3 million, respectively, related to this endeavor, which was placed in service on July 1, 2018. The Company started amortizing these costs commencing with this go-live Depreciation and amortization expense related to fixed assets totaled $455,000, $232,000 and $203,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Goodwill and Intangible Assets Identifiable intangible assets are recorded at fair value as of the closing date when acquired in a business combination. Identifiable intangible assets related to our Hudson IT and InfoTrellis acquisitions consisted of client relationships, covenants not-to-compete, Excess purchase price over the fair value 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. We review goodwill and intangible assets for impairment annually as of October 1 st In conducting our annual impairment testing, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, we are then required to perform a quantitative impairment test. We also may elect not to perform the qualitative assessment, and instead, proceed directly to the quantitative impairment test. In 2018, we performed a quantitative impairment test related to our June 2015 acquisition of Hudson Global Resources Management, Inc.’s U.S. IT staffing business (“Hudson IT”). The results of this testing indicated no impairment associated with the carrying amount of goodwill and intangible assets. Additionally in 2018, we performed quantitative impairment tests related to our July 2017 acquisition of InfoTrellis. The results of such testing indicated impairment associated with the carrying amount of goodwill of $9.7 million. Accordingly, this goodwill impairment charge is reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations in Item 8, herein. Business Combinations The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations (1) in-process ASC 805 requires that any excess purchase price over fair value of assets acquired (including identifiable intangibles) and liabilities assumed be recognized as goodwill. Additionally, any excess fair value of acquired net assets over 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 must perform re-measurements The InfoTrellis financial results are included in the Company’s Consolidated Financial Statements from the date of the acquisition of July 13, 2017. The Hudson IT financial results are included in the Company’s Consolidated Financial Statements from the date of the acquisition of June 15, 2015. Income Taxes The Company records an estimated liability for income and other taxes based on what management determines will likely be paid in the various tax jurisdictions in which we operate. Management uses its best judgment in the determination of these amounts. However, the liabilities ultimately realized and paid are dependent on various matters, including the resolution of the tax audits in the various affected tax jurisdictions, and may differ from the amounts recorded. An adjustment to the estimated liability would be recorded through income in the period in which it becomes probable that the amount of the actual liability differs from the amount recorded. Management determines the Company’s income tax provision using the asset and liability method. Under this method, deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the year in which we expect to recover or settle the temporary differences. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. The Company evaluates its deferred tax assets and records a valuation allowance when, in management’s opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized. For the periods presented, no valuation allowance has been provided. In 2017, the Company incurred an estimated one-time re-measurement one-time re-measurement one-time The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, Accounting for Uncertainty in Income Taxes The Company’s 2015 federal income tax return is under audit by the Internal Revenue Service (“IRS”). During 2013, the Company’s 2011 federal income tax return was audited by the IRS, resulting in no material adjustments to its filed return. Deferred Financing Costs The Company capitalizes expenses directly related to securing its credit facilities. These deferred costs are amortized as interest expense over the term of the underlying facilities. Unamortized deferred financing costs are included as reductions in the long-term debt caption in the Consolidated Balance Sheets. Contingent Consideration Liability In connection with the InfoTrellis acquisition, the Company may be required to pay future consideration that is contingent upon the achievement of specified earnings before interest and taxes objectives (“EBIT”). As of the acquisition date, the Company recorded a contingent consideration liability representing the estimated fair value of the contingent consideration that is expected to be paid. The fair value of the contingent consideration liability was estimated by utilizing a probability weighted simulation model to determine the fair value of contingent consideration. We re-measure In 2018, the Company revalued the contingent consideration liability after determining that relevant conditions for payment of such liability were unlikely to be fully satisfied. The revaluation resulted in an $11.1 million reduction to the contingent consideration liability which is reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations, in Item 8, herein. Segment Reporting Subsequent to the July 13, 2017 InfoTrellis acquisition, the Company has two reportable segments, in accordance with ASC Topic 280 “Disclosures About Segments of an Enterprise and Related Information”: Data and Analytics Services (which segment represents the acquired InfoTrellis business); and IT Staffing Services. Revenue Recognition The Company recognizes revenue on time-and-material Time-and-material out-of-pocket Out-of-pocket The Company recognizes revenue on fixed price contracts as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of recognizing revenue. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable. In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources’ continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. Stock-Based Compensation Effective October 1, 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 3,600,000 shares (adjusted for the 2018 two-for-one The Company accounts for stock-based compensation expense in accordance with ASC Topic 718 “ Share-based Payments Treasury Stock The Company maintained a stock repurchase program which expired on December 22, 2016. Under the program, the Company made treasury stock purchases in the open market, subject to market conditions and normal trading restrictions. Upon expiration, the program was not extended by the Company’s Board of Directors. Additionally, the Company makes stock purchases from time to time to satisfy employee tax obligations related to its Stock Incentive Plan. At December 31, 2018, the Company held 1.6 million shares in its treasury at a cost of approximately $4.2 million. Comprehensive Income Comprehensive income as presented in the Consolidated Statements of Comprehensive Income consists of net income, unrealized gains or losses, net of tax, on cash flow hedging transactions and foreign currency translation adjustments. Derivative Instruments and Hedging Activities – Interest Rate Swap Contracts Concurrent with the Company’s borrowings on July 13, 2017 under its new credit facility, the Company entered into an interest-rate swap to convert the debt’s variable interest rate to a fixed rate of interest. 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 contracts 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 transaction affects earnings. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking such transactions. The Company evaluates hedge effectiveness at the time a contract is entered into and on an ongoing basis. If a swap contract is deemed ineffective, the change in the fair value of the derivative is recorded in the Consolidated Statement of Operations as interest expense. Foreign Currency Translation The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s Indian subsidiaries is their local currency. The results of operations of the Company’s Indian subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s Indian subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within Shareholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of other income (expense), net in the Consolidated Statements of Operations, and have not been material for all periods presented. Earnings Per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted-average number of common shares outstanding during the period, plus the incremental shares outstanding assuming the exercise of dilutive stock options and the vesting of restricted shares and performance shares, calculated using the treasury stock method. Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, In January 2016, the FASB issued ASU 2016-01, 825-10) In August 2016, the FASB issued ASU 2016-15 In May 2017, the FASB issued ASU 2017-09, In March 2018, the FASB issued ASU 2018-05, one-time, non-cash re-measurement one-time re-measurement one-time Recent Accounting Pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, 2016-02 2016-02 right-of-use 2018-10, 2018-11, No. 2016-02 2018-20, 2018-11. In January 2017, the FASB issued ASU 2017-04, 2017-04 2017-04 In August 2017, the FASB issued ASU 2017-12, 2018-16, In February 2018, the FASB issued ASU 2018-02, In June 2018, the FASB issued ASU 2018-07, In July 2018, the FASB issued ASU 2018-09, In August 2018, the FASB issued ASU 2018-13, In August 2018, the FASB issued ASU 2018-15, Other-Internal-Use 350-40): internal-use 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers As of January 1, 2018, the Company adopted ASU 2014-09, The Company recognizes revenue on time-and-material Time-and-material out-of-pocket Out-of-pocket In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. The Company recognizes revenue on fixed price contracts as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable. We do not sell, lease or otherwise market computer software or hardware, and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and digital transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within selling, general and administrative expenses. Our data and analytics services segment provides specialized capabilities in delivering data management and analytics services to customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Big Data, Analytics and Digital Transformation, which can be delivered using onsite and offshore resources. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services in digital and mainstream technologies. Our digital technology stack includes data management and analytics, cloud, mobility, social and automation. Our mainstream technologies include business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; and e-Business IT-spend The following table depicts the disaggregation of our revenues by contract type and operating segment: Years Ended December 31, 2018 2017 2016 (Amounts in millions) Data and Analytics Services Segment Time-and-material $ 18.9 $ 7.8 $ — Fixed-price Contracts 4.9 1.4 — Subtotal Data and Analytics Services $ 23.8 $ 9.2 $ — IT Staffing Services Segment Time-and-material $ 153.4 $ 138.6 $ 132.0 Fixed-price Contracts — 0.1 — Subtotal IT Staffing Services $ 153.4 $ 138.7 $ 132.0 Total Revenues $ 177.2 $ 147.9 $ 132.0 The Company had one client that exceeded 10% of total revenues in 2018 (CGI = 12.8%). The Company had two clients that exceeded 10% of total revenues in 2017 (CGI=12.6% and Accenture PLC=10.7%) and none in 2016. Additionally, CGI accounted for 17.9% of the Company’s accounts receivable balance at December 31, 2018. CGI and Accenture PLC accounted for 7.3% and 5.0% of the Company’s accounts receivable balance at December 31, 2017, respectively. The Company’s top ten clients represented approximately 47%, 47% and 44% of total revenues in 2018, 2017 and 2016, respectively. The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Years Ended December 31, 2018 2017 2016 (Amounts in millions) United States $ 172.6 $ 145.5 $ 132.0 Canada 3.1 1.7 — India and Other 1.5 0.7 — Total $ 177.2 $ 147.9 $ 132.0 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations On July 7, 2017, Mastech Digital, Inc., through its wholly-owned subsidiaries Mastech InfoTrellis, Inc., Mastech InfoTrellis Digital, Ltd., Mastech Digital Data, Inc. and Mastech Digital Private Limited (collectively, the “Company Entities”), entered into two Asset Purchase Agreements and a Share Purchase Agreement (collectively, the “Purchase Agreements”) to acquire substantially all of the assets comprising the consulting services business in the areas of master data management, data integration and big data (the “Acquired Business”) of InfoTrellis Inc., InfoTrellis, Inc. and 2291496 Ontario Inc., including all outstanding shares of InfoTrellis India Private Limited (collectively, “InfoTrellis”). The aforementioned transaction was closed on July 13, 2017. Under the terms of the Purchase Agreements, the Company Entities paid at the closing of the acquisition $35.75 million in cash, less certain working capital adjustments which totaled $861,000. The Purchase Agreements also provided for contingent consideration of $19.25 million in deferred cash payments, with up to $8.25 million payable if the EBIT of the Acquired Business for the 12-month 12-month To fund the acquisition, the Company entered into a new credit agreement on July 13, 2017 with PNC Bank, National Association, as administrative agent, swing loan lender and issuing lender, PNC Capital Markets LLC, as sole lead arranger and sole book runner, and certain financial institutions party thereto as lenders. The Credit Agreement provides for a total aggregate commitment of $65.0 million, consisting of (i) a revolving credit facility in an aggregate principal amount not to exceed $27.5 million, subject to increases to an aggregate amount not to exceed $37.5 million upon satisfaction of certain conditions; (ii) a $30.5 million term loan facility; and (iii) a $7.0 million delayed draw term loan facility to be used exclusively toward contingent consideration payments. In addition, the Company entered into Securities Purchase Agreements with Ashok Trivedi and Sunil Wadhwani (collectively, the “Investors”) on July 7, 2017 pursuant to which the Company issued and sold an aggregate 1.7 million shares (the “Shares”) of its common stock, par value $0.01 per share (the “Common Stock”), to the Investors on July 13, 2017 for $6.0 million in aggregate gross proceeds (the “Private Placement Transactions”). The Company used the proceeds from the Private Placement Transactions to fund a portion of the cash paid at the closing of the acquisition. On April 20, 2018, we entered into an amendment to the Credit Agreement. This amendment: (i) reduced the aggregate commitment amount of the revolving credit facility from $27.5 million to $22.5 million, which amount is subject to increase to an aggregate commitment amount not exceeding $32.5 million upon satisfaction of certain conditions; (ii) increased the aggregate commitment amount of the swing loan sub-facility The acquisition 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 value as of the closing date. The following table summarizes the fair value of consideration for the Acquired Business on the July 13, 2017 closing date: (in thousands) Amounts Cash purchase price at closing $ 35,750 Working capital adjustments (861 ) Estimated payout of contingent consideration (1) 17,125 Total Fair Value of Consideration $ 52,014 (1) Based on a valuation conducted by an independent third party, the fair value of contingent consideration at the closing date was determined to be $17,125,000. The cash purchase price at closing was paid with funds obtained from the following sources: (in thousands) Amounts Cash balances on hand $ 341 Sale of common stock in a private placement transactions 6,000 Term loan debt facility 30,500 Revolving line of credit 9,000 Payoff of previous credit facility (10,091 ) Cash paid at Closing $ 35,750 The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of July 13, 2017, 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. Goodwill is expected to be largely deductible for tax purposes. The valuation of net assets acquired is as follows: (in thousands) Amounts Current Assets $ 6,909 Fixed Assets and Other 215 Identifiable intangible assets: Client relationships 16,671 Covenant not-to-compete 761 Trade name 1,221 Technology 1,209 Total identifiable intangible assets 19,862 Goodwill 27,417 Current liabilities (2,389 ) Net Assets Acquired $ 52,014 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 The Company incurred $2.0 million of transaction expenses related to the acquisition in 2017. In 2018, the Company reversed transaction expenses of $140,000 that did not materialize. This credit expense related to investment banker fees that were tied to the contingent consideration liability. These expenses are included in selling, general and administrative expenses in the accompanying Consolidated Statement of Operations. Included in the Consolidated Statement of Operations for year ended December 31, 2017 are revenues of $9.2 million and net income of approximately $1.1 million applicable to the InfoTrellis operations from our July 13, 2017 acquisition date through December 31, 2017. The following reflects the Company’s unaudited pro forma results had the results of InfoTrellis been included for all periods presented: Years Ended December 31, 2018 2017 2016 (Amounts in Thousands, except per share data) Revenue $ 177,164 $ 158,785 $ 157,077 Net income $ 6,691 $ 2,388 $ 6,778 Earnings per share—diluted $ .60 $ .22 $ .63 The information above does not reflect all of the operating efficiencies or inefficiencies that may have resulted from the InfoTrellis acquisitions in those periods prior to the acquisition. Therefore, the unaudited pro forma information above is not necessarily indicative of results that would have been achieved had the business been combined during all periods presented. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | 4. Goodwill and Other Intangible Assets, net Goodwill related to our June 15, 2015 acquisition of Hudson IT totaled $8.4 million. Goodwill related to our July 13, 2017 acquisition of the services division of InfoTrellis totaled $27.4 million. During 2018, the Company recorded a goodwill impairment related to the InfoTrellis acquisition of $9.7 million. The impairment was attributable to a lower recovery in revenues from levels present at closing. Based upon the business performance subsequent to the acquisition date, we reduced our near-term outlook and lowered our revenue projections from original expectations. Also, we factored into our current assessment of discounted cash flows, additional investments to the sales organization and other necessary investments which were not initially considered. This revised outlook resulted in a goodwill impairment of $9.7 million for the year ended December 31, 2018. A reconciliation of the beginning and ending amounts of goodwill for the three years ended December 31, 2018 is as follows: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Goodwill, beginning balance $ 35,844 $ 8,427 $ 8,427 Addition in current period — 27,417 — Reduction in current period (9,738 ) — — Goodwill, ending balance $ 26,106 $ 35,844 $ 8,427 The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of December 31, 2018 and 2017: As of December 31, 2018 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 2,361 $ 5,638 Covenant-not-to-compete 5 319 226 93 Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 16,671 2,025 14,646 Covenant-not-to-compete 5 761 222 539 Trade name 5 1,221 356 865 Technology 7 1,209 252 957 Total Intangible Assets $ 28,429 $ 5,691 $ 22,738 As of December 31, 2017 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 1,694 $ 6,305 Covenant-not-to-compete 5 319 162 157 Trade name 3 249 211 38 Data and Analytics Services: Client relationships 12 16,671 636 16,035 Covenant-not-to-compete 5 761 70 691 Trade name 5 1,221 112 1,109 Technology 7 1,209 79 1,130 Total Intangible Assets $ 28,429 $ 2,964 $ 25,465 Amortization expense for the years ended December 31, 2018, 2017 and 2016 totaled $2.7 million, $1.7 million and $0.8 million, respectively and is included in selling, general and administrative expenses in the Consolidated Statement of Operations. The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2019 through 2023 is as follows: Years Ended December 31, 2019 2020 2021 2022 2023 (Amounts in thousands) Amortization expense $ 2,689 $ 2,654 $ 2,625 $ 2,443 $ 2,229 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and Cash Equivalents The Company had cash and cash equivalents consisting of cash balances on hand and money market funds that totaled $1.3 million at December 31, 2018 and $2.5 million at December 31, 2017. There were no restrictions on the Company’s cash balances during the periods presented. Certain cash deposits with financial institutions may at times exceed FDIC insurance limits. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Credit Facility | 6. Credit Facility On July 13, 2017, the Company entered into a Credit Agreement (the “Credit Agreement”) with PNC Bank, as administrative agent, swing loan lender and issuing lender, PNC Capital Markets LLC, as sole lead arranger and sole book-runner, and certain financial institution parties thereto as lenders (the “Lenders”). Prior to the Company entering into the April 20, 2018 amendment described below, the Credit Agreement provided for a total aggregate commitment of $65 million, consisting of (i) a revolving credit facility (the “Revolver”) in an aggregate principal amount not to exceed $27.5 million (subject to increase by up to an additional $10 million upon satisfaction of certain conditions); (ii) a $30.5 million term loan facility (the “Term Loan”); and a (iii) $7.0 million delayed draw term loan facility (the “Delayed Draw Term Loan”), as more fully described in Exhibit 10.1 to the Company’s Form 8-K, The Revolver expires in July 2022 and includes a letter of credit sub-limit On April 20, 2018, we entered into an amendment to our Credit Agreement dated as of July 13, 2017. This amendment: (i) reduced the aggregate commitment amount of the Revolver from $27.5 million to $22.5 million, which amount is subject to increase to an aggregate commitment amount not exceeding $32.5 million upon satisfaction of certain conditions; (ii) increased the aggregate commitment amount of the swing loan sub-facility 8-K Amounts borrowed under the Term Loan are required to be repaid in consecutive quarterly installments commencing on October 1, 2017 through and including July 1, 2022 and on the maturity date of July 13, 2022. The principal amount of each quarterly installment payable on the Term Loan equals the product of $30.5 million, multiplied by (i) 3.125% for quarterly installments due on October 1, 2017 through and including July 1, 2018; (ii) 3.75% for quarterly installments payable on October 1, 2018 through and including July 1, 2021; and (iii) 5.00% for quarterly installments payable on October 1, 2021 through and including the maturity date, with the maturity date payment equal to the outstanding amount of the loan on that date. The Delayed Draw Term Loan may be used through the date of the final contingent consideration payment (referred to as the final “Deferred Amount Payment” in the Credit Agreement) on no more than two separate occasions in borrowing multiples of $1.0 million up to the lesser of contingent consideration earned or $7.0 million. Amounts borrowed under the Delayed Draw Term Loan will be payable in consecutive quarterly installments commencing on the first payment date after disbursement of such borrowings. The principal amount of each quarterly installment payable of each Delayed Draw Term Loan equals the product of the original balance of such Loan, multiplied by (i) 3.75% for quarterly installments due on October 1, 2018 through and including July 1, 2021; and (ii) 5.00% for quarterly installments payable on October 1, 2021 through and including the maturity date, with the maturity date payment equal to the outstanding amount of the loan on that date. Borrowings under the revolver and the term loans, 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 senior leverage ratio or (b) an adjusted London Interbank Offered Rate (“LIBOR”), plus an applicable margin determined based upon the Company’s senior leverage ratio. The applicable margin on the base rate is between 0.50% and 1.25% on revolver borrowings and between 1.75% and 2.50% on term loans. The applicable margin on the adjusted LIBOR is between 1.50% and 2.25% on revolver borrowings and between 2.75% and 3.50% on term loans. A 20 to 30 basis point per annum commitment fee on the unused portion of the revolver facility and the delayed draw term loan is charged and due monthly in arrears. The applicable commitment fee is determined based upon the Company’s senior leverage ratio. The Company pledged substantially all of its assets in support of the Credit Agreement. The credit agreement contains standard financial covenants, including, but not limited to, covenants related to the Company’s senior leverage ratio and fixed charge ratio (as defined under the credit agreement) and limitations on liens, indebtedness, guarantees, contingent liabilities, loans and investments, distributions, leases, asset sales, stock repurchases and mergers and acquisitions. As of December 31, 2018, the Company was in compliance with all provisions under the facility. In connection with securing the commitments under the Credit Agreement and the April 20, 2018 amendment to the Credit Agreement, the Company paid a commitment fee and incurred deferred financing costs totaling $506,000, which were capitalized and are being amortized as interest expense over the life of the facility. Deferred financing costs of $367,000 and $395,000 (net of amortization) as of December 31, 2018 and December 31, 2017, respectively, are presented as reductions in long-term debt in the Company’s Consolidated Balance Sheets. At closing, the Company borrowed $9.0 million under the Revolver and $30.5 million under the Term Loan which were used to repay all borrowings under the previous credit facility with PNC and to pay a portion of the acquisition consideration and transaction expenses. As of December 31, 2018 and 2017 the Company’s outstanding borrowings under the Revolver totaled $13.6 million and $9.0 million, respectively; and unused borrowing capacity available was approximately $9 million and $13 million, respectively. The Company’s outstanding borrowings under the term loan were $25.5 million and $29.5 million at December 31, 2018 and 2017, respectively. The Company believes the eligible borrowing base on the revolver will not fall below current outstanding borrowings for a period of time exceeding one year and has classified the $13.6 million net outstanding debt balance at December 31, 2018 as long-term. As of December 31, 2018, the annual aggregate maturities of our outstanding debt (exclusive of deferred financing costs amortization) during each of the next five years are as follows: Total Amount (Amounts in thousands) 2019 $ 4,575 2020 4,575 2021 4,956 2022 24,965 2023 — Total $ 39,071 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Lease Commitments The Company rents certain office facilities and equipment under noncancelable operating leases, which provide for the following future minimum rental payments as of December 31, 2018: Total Amount (Amounts in thousands) 2019 $ 1,583 2020 1,528 2021 1,051 2022 1,035 2023 1,039 Thereafter 208 Total $ 6,444 Rental expense for the years ended December 31, 2018, 2017 and 2016, totaled $1.4 million, $1.2 million and $1.2 million, respectively. Contingencies In the ordinary course of business, the Company is involved in a number of lawsuits and administrative proceedings. While uncertainties are inherent in the final outcome of these matters, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 8. 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 | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Effective October 1, 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 3,600,000 shares (adjusted for the 2018 two-for-one The Plan is administered by the Compensation Committee of the Board of Directors. All grants awarded under the Plan are recommended by the Committee to the Board of Directors for approval. The exercise price of stock options is set on the grant date and is not to be less than the fair market value per share of our closing stock price on that date. Grants of stock options and restricted stock awards generally vest over a three to five-year period and options expire after ten years from the grant date. Performance shares vest upon the achievement of the performance criteria and approval by the Compensation Committee of the Board of Directors. Following is a summary of the Company’s stock option activity for the three years ended December 31, 2018: Number of Weighted Average Outstanding at December 31, 2015 472,000 $ 0.50 Granted 670,000 3.52 Exercised (252,000 ) 0.40 Cancelled / forfeited — — Outstanding at December 31, 2016 890,000 2.80 Granted — — Exercised (180,000 ) 0.43 Cancelled / forfeited (36,000 ) 2.90 Outstanding at December 31, 2017 674,000 3.43 Granted 495,000 6.72 Exercised (52,000 ) 2.08 Cancelled / forfeited (6,000 ) 3.20 Outstanding at December 31, 2018 1,111,000 $ 4.95 As of December 31, 2018, the Company’s outstanding “in the money” stock options using the year-end The table below summarizes information regarding the Company’s outstanding and exercisable stock options as of December 31, 2018: Range of Exercise Prices: Options Weighted Average Weighted Average $0.01 to $2.00 6,000 1.0 $ 1.18 $2.01 to $4.00 610,000 7.2 $ 3.55 $4.01 to $6.00 315,000 9.9 $ 6.30 $6.01 to $8.00 180,000 9.2 $ 7.46 1,111,000 8.3 $ 4.95 Range of Exercise Prices: Options Weighted Average Weighted Average $0.01 to $2.00 6,000 1.0 $ 1.18 $2.01 to $4.00 208,000 7.2 $ 3.61 $4.01 to $6.00 — — — $6.01 to $8.00 — — — 214,000 7.0 $ 3.54 Stock options of 495,000 units were issued during the year ended December 31, 2018 and vest over a five year period. Stock options of 670,000 units were issued during the year ended December 31, 2016 and vest over a five year period. No stock options were issued for the years ended December 31, 2017. The Company used the following assumptions with respect to the Black-Scholes option pricing model for Mastech Digital stock options issued during 2018 and 2016. Years Ended December 31, 2018 2017 2016 Stock option grants: Weighted-average risk-free interest rate 2.8 % — 1.34 % Weighted-average dividend yield 0.0 % — 0.0 % Expected volatility 50.6 % — 55.9 % Expected term (in years) 5.0 — 5.5 Weighted-average fair value $ 3.15 $ — $ 3.52 Risk-free interest rate Expected dividend yield Expected volatility Expected term Following is a summary of Mastech’s restricted stock activity for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 Beginning outstanding balance 30,500 65,110 134,740 Awarded 25,380 — — Released (21,500 ) (34,610 ) (44,630 ) Forfeited — — (25,000 ) Ending outstanding balance 34,380 30,500 65,110 The aggregate intrinsic value of restricted stock units outstanding at December 31, 2018 was $217,000. The total intrinsic value of restricted shares released during 2018 totaled $178,000. Following is a summary of Mastech performance share activity for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 Beginning outstanding balance — — 152,838 Awarded — — — Released — — — Forfeited — — (152,838 ) Ending outstanding balance — — — Stock-based compensation expense of $470,000, $381,000 and $408,000 was recognized in the Consolidated Statements of Operations for the years ended December 31, 2018, 2017, and 2016, respectively. The Company has recognized related tax benefits associated with its share-based compensation arrangements for the years ended December 31, 2018, 2017, and 2016 of $128,000, $141,000, and $152,000, respectively. As of December 31, 2018, the total remaining unrecognized compensation expense related to non-vested |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of income before income as shown in the accompanying Consolidated Statement of Operations, consisted of the following for the years ended December 31, 2018, 2017 and 2016: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Income before income taxes: Domestic $ 7,520 $ 1,875 $ 3,544 Foreign 1,894 1,073 476 Income before income taxes $ 9,414 $ 2,948 $ 4,020 The Company has foreign subsidiaries in Canada and India, both of which generate revenues from foreign clients. Additionally, the Company has foreign subsidiaries in Canada and India which provide services to its U.S. operations. Accordingly, the Company allocates a portion of its income to these subsidiaries based on a “transfer pricing” model and reports such income as foreign in the above table. The provision for income taxes, as shown in the accompanying Consolidated Statement of Operations, consisted of the following for the years ended December 31, 2018, 2017 and 2016: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Current provision: Federal $ 1,494 $ 1,101 $ 1,189 State 273 159 101 Foreign 807 276 161 Total current provision 2,574 1,536 1,451 Deferred provision: Federal 317 (205 ) 43 State 96 (73 ) 6 Foreign (264 ) 64 — Total deferred provision 149 (214 ) 49 Total provision for income taxes $ 2,723 $ 1,322 $ 1,500 The reconciliation of income taxes computed using our statutory U.S. income tax rate and the provision for income taxes for the years ended December 31, 2018, 2017 and 2016 were as follows: Years Ended December 31, (Amounts in thousands) 2018 2017 2016 Income taxes computed at the federal statutory rate $ 1,977 21.0 % $ 1,002 34.0 % $ 1,367 34.0 % State income taxes, net of federal tax benefit 387 4.1 116 3.9 107 2.7 Excess tax benefits from stock options/restricted shares (93 ) (1.0 ) (140 ) (4.7 ) — — Estimated charge for U.S. tax reform 251 2.7 372 12.6 — — Difference in tax rate on foreign earnings/other 201 2.1 (28 ) (1.0 ) 26 0.6 $ 2,723 28.9 % $ 1,322 44.8 % $ 1,500 37.3 % The components of the deferred tax assets and liabilities were as follows: At December 31, 2018 2017 (Amounts in thousands) Deferred tax assets: Allowance for doubtful accounts $ 109 $ 99 Accrued vacation and bonuses 228 230 Stock-based compensation expense 194 119 Acquisition-related transaction costs 507 501 Total deferred tax assets 1,038 949 Deferred tax liabilities: Prepaid expenses 186 160 Depreciation, intangibles and other 555 321 Total deferred tax liabilities 741 481 Net deferred tax asset $ 297 $ 468 A reconciliation of the beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions, including interest and penalties, for the three years ended December 31, 2018 is as follows: Years Ended December 31, (Amounts in thousands) 2018 2017 2016 Unrecognized tax benefits, beginning balance $ 95 $ 128 $ 135 Additions related to current period 208 — 20 Additions related to prior periods — — — Reductions related to prior periods (40 ) (33 ) (27 ) Unrecognized tax benefits, ending balance $ 263 $ 95 $ 128 The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2018, 2017 and 2016, the Company had $10,000, $12,000 and $15,000, respectively, accrued for interest and penalties. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 11. Derivative Instruments and Hedging Activities Interest Rate Risk Management Concurrent with the Company’s July 13, 2017 borrowings under its new credit facility, the Company entered into a 44–month 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 1.99% and receives interest at a variable rate equal to the daily U.S. LIBOR on an initial notional amount of $15.0 million. Notional amounts were $12.6 million and $14.5 million at December 31, 2018 and 2017, respectively. 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. Changes in the fair value of interest-rate swap contracts deemed ineffective are recognized in the Consolidated Statements of Operations as interest expense. Prior to July 13, 2017, the Company had outstanding interest-rate swap contracts related to term loan borrowings under the Company’s previous credit agreement. The fair value of the interest-rate swap contracts at December 31, 2018 and 2017 was an asset of $106,000 and $9,000, respectively, and is reflected in the Consolidated Balance Sheets as other current assets. The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2018 (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded Interest-Rate Swap Contracts $96 Interest Expense $(2) Interest Expense $— The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2017 (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded Interest-Rate Swap Contracts $21 Interest Expense $(56) Interest Expense $— Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets (in thousands): December 31, 2018 December 31, 2017 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current Assets $ 106 Other Current Assets $ 9 The estimated amount of pretax income as of December 31, 2018 that is expected to be reclassified from other comprehensive income into earnings, within the next 12 months is approximately $50,000. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | 12. Shareholders’ Equity On July 7, 2017 the Company entered into Securities Purchase Agreements with Ashok Trivedi and Sunil Wadhwani pursuant to which the Company agreed to sell to each the number of shares of Company common stock (“Common Stock”) equal to $3.0 million divided by the greater of (i) $3.50 per share of Common Stock and (ii) the closing price of the Common Stock on the NYSE American on July 10, 2017, which was $3.18 per share. On July 13, 2017, the Closing Date of the Company’s acquisition of InfoTrellis’ services division, the Company issued and sold an aggregate of approximately 1.7 million shares of Common Stock to Ashok Trivedi and Sunil Wadhwani for $6.0 million in aggregate gross proceeds. The Company used the proceeds from the private placement to fund a portion of the closing date purchase price of the InfoTrellis acquisition. The Company purchased 2,574 and 4,134 shares in 2018 and 2017 at an average price of $8.01 and $4.52, respectively to satisfy employee tax obligations related to its Stock Incentive Plan. These shares were not acquired pursuant to any publicly announced purchase program. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 13. Earnings per Share The computation of basic earnings per share (“EPS”) 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 and restricted share units were exercised / released. The dilutive effect of stock options and restricted share units were calculated using the treasury stock method. For the years ended December 31, 2018, 2017 and 2016, there were 141,000, nil and 500,000 anti-dilutive stock options that were excluded from the computation of diluted earnings per share, respectively. The following table sets forth the denominators of the basic and diluted EPS computations. Years Ended December 31, (Amounts in thousands): 2018 2017 2016 Weighted-average shares outstanding: Basic 10,950 9,924 8,786 Stock options and restricted share units 211 74 178 Diluted 11,161 9,998 8,964 The following table sets forth the computation of basic EPS utilizing net income and the Company’s weighted-average common stock outstanding: Years Ended December 31, (Amounts in thousands, except per share data): 2018 2017 2016 Net income $ 6,691 $ 1,626 $ 2,520 Basic weighted-average shares outstanding 10,950 9,924 8,786 Basic EPS $ .61 $ .16 $ .29 The following table sets forth the computation of diluted EPS utilizing net income and the Company’s weighted-average common stock outstanding plus the weighted-average of stock options, restricted shares and performance shares: Years Ended December 31, (Amounts in thousands, except per share data): 2018 2017 2016 Net income $ 6,691 $ 1,626 $ 2,520 Diluted weighted-average shares outstanding 11,161 9,998 8,964 Diluted EPS $ .60 $ .16 $ .28 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. 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. The following table summarizes the basis used to measure financial assets and (liabilities) at fair value on a recurring basis: Fair Value as of December 31, 2018 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ 106 $ — $ 106 Contingent consideration liabilities $ — $ — $ (6,069 ) $ (6,069 ) Fair Value as of December 31, 2017 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ 9 $ — $ 9 Contingent consideration liabilities $ — $ — $ (17,125 ) $ (17,125 ) 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. The fair value of the contingent consideration liability was estimated by utilizing a probability weighted simulation model to determine the fair value of contingent consideration, and therefore, the fair value measurement is considered to be within Level 3. In 2018, the Company revalued the contingent consideration liability after determining that relevant conditions for payment of such liability were unlikely to be fully satisfied. The revaluation resulted in an $11.1 million reduction to the contingent consideration liability which is reflected in selling and administrative expenses in the Company’s Consolidated Statements of Operations, in Item 8 herein. The following table provides information regarding changes in the Company’s Level 3 fair values for the contingent consideration liability for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Beginning balance $ 17,125 $ — $ — Contingent consideration incurred — 17,125 — Payments made — — — Revaluation (11,056 ) — — Ending balance $ 6,069 $ 17,125 $ — At December 31, 2018 and December 31, 2017, the Company carried the following financial assets (liabilities) at fair value measured on a non-recurring Fair Value as of December 31, 2018 (Amounts in thousands) Level 1 Level 2 Level 3 Total Goodwill $ — $ — $ 26,106 $ 26,106 Fair Value as of December 31, 2017 (Amounts in thousands) Level 1 Level 2 Level 3 Total Goodwill $ — $ — $ 35,844 $ 35,844 During the year ended December 31, 2018, the Company recorded a goodwill impairment related to the InfoTrellis acquisition of $9.7 million. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 15. Quarterly Financial Information (Amounts in thousands, except per share data): Revenues Gross Net Earnings Per Year Ended December 31, 2018 Basic Diluted First quarter $ 43,333 $ 10,261 $ 1,380 $ .13 $ .12 Second quarter 44,894 10,892 2,817 .26 .25 Third quarter 44,292 10,710 1,620 .15 .14 Fourth quarter 44,645 10,665 874 .08 .08 Annual $ 177,164 $ 42,528 $ 6,691 $ .61 $ .60 Revenues Gross Net Earnings (loss) Per Year Ended December 31, 2017 Basic Diluted First quarter $ 33,100 $ 6,209 $ 201 $ .02 $ .02 Second quarter 35,086 7,077 696 .08 .08 Third quarter 39,228 8,818 (136 ) (.01 ) (.01 ) Fourth quarter 40,468 9,525 865 .08 .08 Annual $ 147,882 $ 31,629 $ 1,626 $ .16 $ .16 |
Severance Charges
Severance Charges | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Severance Charges | 16. Severance Charges The Company incurred severance costs of $0, $0 and $780,000 in 2018, 2017 and 2016, respectively. Severance costs during 2016 related to changes in the Company’s President and Chief Executive Officer and its Vice President of Technology and Chief Information Officer. |
Business Segments and Geographi
Business Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Information | 17. Business Segments and Geographic Information Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services. The data and analytics services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Toronto, Canada and Austin, Texas and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site The IT staffing services segment offers staffing services in digital and mainstream technologies; and digital transformation services focused on providing CRM on the cloud through Salesforce.com and using digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis. Below are the operating results of our reporting segments: At December 31, 2018 2017 2016 (Amounts in Thousands) Revenues: Data and analytics services $ 23,803 $ 9,185 $ — IT staffing services 153,361 138,697 132,008 Total revenues $ 177,164 $ 147,882 $ 132,008 Gross Margin %: Data and analytics services 44.0 % 44.8 % 0.0 % IT staffing services 20.9 % 19.8 % 19.9 % Total gross margin % 24.0 % 21.4 % 19.9 % Segment operating income: Data and analytics services $ 5,710 $ 2,531 $ — IT staffing services 7,184 5,279 5,320 Subtotal 12,894 7,810 5,320 Amortization of acquired intangible assets (2,727 ) (1,710 ) (813 ) Revaluation of contingent consideration liability 11,056 — — Goodwill impairment (9,738 ) — — Acquisition-related transaction expenses 140 (2,019 ) — Interest expenses and other, net (2,211 ) (1,133 ) (487 ) Income before income taxes $ 9,414 $ 2,948 $ 4,020 Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment: Total Assets Depreciation & Amortization Capital Expenditures Amounts in thousands: 2018 2017 2016 2018 2017 2016 2018 2017 2016 Data and Analytics Services $ 43,182 $ 53,683 $ — $ 2,051 $ 925 $ — $ 175 $ 11 $ — IT Staffing Services 49,402 44,921 39,406 1,131 1,017 1,016 596 1,428 105 Total $ 92,584 $ 98,604 $ 39,406 $ 3,182 $ 1,942 $ 1,016 $ 771 $ 1,439 $ 105 Below is geographic information related to our revenues from external customers and long-lived assets: Revenues Equipment, Enterprise Amounts in thousands: 2018 2017 2016 2018 2017 2016 United States $ 172,610 $ 145,513 $ 132,008 $ 1,956 $ 1,730 $ 494 Canada 3,125 1,729 — 17 19 — India and Other 1,429 640 — 235 150 64 Total $ 177,164 $ 147,882 $ 132,008 $ 2,208 $ 1,899 $ 558 |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | MASTECH DIGITAL, INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016 (Amounts in thousands) Balance at Charged Recoveries/ (Write-offs) Balance Allowance for Doubtful Accounts: Year ended December 31, 2018 $ 398 $ 10 $ — $ 408 Year ended December 31, 2017 388 10 — 398 Year ended December 31, 2016 313 75 — 388 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation References in this Annual Report on Form 10-K |
Description of Business | Description of Business We are a provider of Digital Transformation IT Services. Our portfolio of offerings include data and analytics services; other digital transformation services such as Salesforce.com and Digital Learning services; and IT staffing services that span across digital and mainstream technologies. Reflective of our 2017 acquisition of the services division of Canada-based InfoTrelllis, Inc., we have added specialized capabilities in delivering data and analytics services to our customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Big Data, Analytics and Digital Transformation, with such services delivered using on-site Our IT staffing business combines technical expertise with business process experience to deliver a broad range of staffing services in digital and mainstream technologies. Our digital technologies include data management, analytics, cloud, mobility, social and artificial intelligence. 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. |
Recent Developments | Recent Developments On July 24, 2018, the Company’s Board of Directors declared a two-for-one |
Accounting Principles | Accounting Principles The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined as cash and highly liquid debt investments with maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates market value. |
Accounts Receivable and Unbilled Receivables | Accounts Receivable and Unbilled Receivables The Company extends credit to clients based upon management’s assessment of their creditworthiness. A substantial portion of the Company’s revenue, and the resulting accounts receivable, are from Fortune 1000 companies, major systems integrators and other staffing organizations. The Company does not generally charge interest on delinquent accounts receivable. Unbilled receivables represent amounts recognized as revenues based on services performed and, in accordance with the terms of the client contract, will be invoiced in a subsequent period. See Note 2 “Revenue from Contracts with Customers” for futher details. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts Accounts receivable are reviewed periodically to determine the probability of loss. The Company records an allowance for uncollectible accounts when it is probable that the related receivable balance will not be collected based on historical collection experience, client-specific collection issues, and other matters the Company identifies in its collection monitoring. The Allowance for Uncollectible Accounts was $408,000 and $398,000 at December 31, 2018 and 2017, respectively. There were $10,000, $10,000 and $75,000 of bad debt expense charges for the years ended December 31, 2018, 2017 and 2016, respectively, which amounts are reflected in the Consolidated Statements of Operations. |
Equipment, Enterprise Software and Leasehold Improvements | Equipment, Enterprise Software and Leasehold Improvements Equipment, enterprise software and leasehold improvements are stated at historical cost. The Company provides for depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of (a) the remaining term of the lease or (b) the estimated useful life of the improvements. Repairs and maintenance, which do not extend the useful life of the respective assets, are charged to expense as incurred. Upon disposal, assets and related accumulated depreciation are removed from the Company’s accounts and the resulting gains or losses are reflected in the Company’s Consolidated Statement of Operations. The estimated useful lives of depreciable assets are primarily as follows: Laptop Computers 18 months Equipment 3-5 years Enterprise Software 3-5 years The Company capitalizes certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing and installation activities. Capitalized costs include only external direct cost of material and services consumed in developing or obtaining internal-use internal-use The Company recently implemented new enterprise software applications to its backbone systems environment. As of December 31, 2018 and December 31, 2017, the Company has capitalized $1.8 million and $1.3 million, respectively, related to this endeavor, which was placed in service on July 1, 2018. The Company started amortizing these costs commencing with this go-live Depreciation and amortization expense related to fixed assets totaled $455,000, $232,000 and $203,000 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Identifiable intangible assets are recorded at fair value as of the closing date when acquired in a business combination. Identifiable intangible assets related to our Hudson IT and InfoTrellis acquisitions consisted of client relationships, covenants not-to-compete, Excess purchase price over the fair value 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. We review goodwill and intangible assets for impairment annually as of October 1 st In conducting our annual impairment testing, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, we are then required to perform a quantitative impairment test. We also may elect not to perform the qualitative assessment, and instead, proceed directly to the quantitative impairment test. In 2018, we performed a quantitative impairment test related to our June 2015 acquisition of Hudson Global Resources Management, Inc.’s U.S. IT staffing business (“Hudson IT”). The results of this testing indicated no impairment associated with the carrying amount of goodwill and intangible assets. Additionally in 2018, we performed quantitative impairment tests related to our July 2017 acquisition of InfoTrellis. The results of such testing indicated impairment associated with the carrying amount of goodwill of $9.7 million. Accordingly, this goodwill impairment charge is reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations in Item 8, herein. |
Business Combinations | Business Combinations The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations (1) in-process ASC 805 requires that any excess purchase price over fair value of assets acquired (including identifiable intangibles) and liabilities assumed be recognized as goodwill. Additionally, any excess fair value of acquired net assets over 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 must perform re-measurements The InfoTrellis financial results are included in the Company’s Consolidated Financial Statements from the date of the acquisition of July 13, 2017. The Hudson IT financial results are included in the Company’s Consolidated Financial Statements from the date of the acquisition of June 15, 2015. |
Income Taxes | Income Taxes The Company records an estimated liability for income and other taxes based on what management determines will likely be paid in the various tax jurisdictions in which we operate. Management uses its best judgment in the determination of these amounts. However, the liabilities ultimately realized and paid are dependent on various matters, including the resolution of the tax audits in the various affected tax jurisdictions, and may differ from the amounts recorded. An adjustment to the estimated liability would be recorded through income in the period in which it becomes probable that the amount of the actual liability differs from the amount recorded. Management determines the Company’s income tax provision using the asset and liability method. Under this method, deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the year in which we expect to recover or settle the temporary differences. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. The Company evaluates its deferred tax assets and records a valuation allowance when, in management’s opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized. For the periods presented, no valuation allowance has been provided. In 2017, the Company incurred an estimated one-time re-measurement one-time re-measurement one-time The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, Accounting for Uncertainty in Income Taxes The Company’s 2015 federal income tax return is under audit by the Internal Revenue Service (“IRS”). During 2013, the Company’s 2011 federal income tax return was audited by the IRS, resulting in no material adjustments to its filed return. |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes expenses directly related to securing its credit facilities. These deferred costs are amortized as interest expense over the term of the underlying facilities. Unamortized deferred financing costs are included as reductions in the long-term debt caption in the Consolidated Balance Sheets. |
Contingent Consideration Liability | Contingent Consideration Liability In connection with the InfoTrellis acquisition, the Company may be required to pay future consideration that is contingent upon the achievement of specified earnings before interest and taxes objectives (“EBIT”). As of the acquisition date, the Company recorded a contingent consideration liability representing the estimated fair value of the contingent consideration that is expected to be paid. The fair value of the contingent consideration liability was estimated by utilizing a probability weighted simulation model to determine the fair value of contingent consideration. We re-measure In 2018, the Company revalued the contingent consideration liability after determining that relevant conditions for payment of such liability were unlikely to be fully satisfied. The revaluation resulted in an $11.1 million reduction to the contingent consideration liability which is reflected in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations, in Item 8, herein. |
Segment Reporting | Segment Reporting Subsequent to the July 13, 2017 InfoTrellis acquisition, the Company has two reportable segments, in accordance with ASC Topic 280 “Disclosures About Segments of an Enterprise and Related Information”: Data and Analytics Services (which segment represents the acquired InfoTrellis business); and IT Staffing Services. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on time-and-material Time-and-material out-of-pocket Out-of-pocket The Company recognizes revenue on fixed price contracts as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of recognizing revenue. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable. In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources’ continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. |
Stock-Based Compensation | Stock-Based Compensation Effective October 1, 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 3,600,000 shares (adjusted for the 2018 two-for-one The Company accounts for stock-based compensation expense in accordance with ASC Topic 718 “ Share-based Payments |
Treasury Stock | Treasury Stock The Company maintained a stock repurchase program which expired on December 22, 2016. Under the program, the Company made treasury stock purchases in the open market, subject to market conditions and normal trading restrictions. Upon expiration, the program was not extended by the Company’s Board of Directors. Additionally, the Company makes stock purchases from time to time to satisfy employee tax obligations related to its Stock Incentive Plan. At December 31, 2018, the Company held 1.6 million shares in its treasury at a cost of approximately $4.2 million. |
Comprehensive Income | Comprehensive Income Comprehensive income as presented in the Consolidated Statements of Comprehensive Income consists of net income, unrealized gains or losses, net of tax, on cash flow hedging transactions and foreign currency translation adjustments. |
Derivative Instruments and Hedging Activities - Interest Rate Swap Contracts | Derivative Instruments and Hedging Activities – Interest Rate Swap Contracts Concurrent with the Company’s borrowings on July 13, 2017 under its new credit facility, the Company entered into an interest-rate swap to convert the debt’s variable interest rate to a fixed rate of interest. 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 contracts 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 transaction affects earnings. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking such transactions. The Company evaluates hedge effectiveness at the time a contract is entered into and on an ongoing basis. If a swap contract is deemed ineffective, the change in the fair value of the derivative is recorded in the Consolidated Statement of Operations as interest expense. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s Indian subsidiaries is their local currency. The results of operations of the Company’s Indian subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s Indian subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within Shareholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of other income (expense), net in the Consolidated Statements of Operations, and have not been material for all periods presented. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted-average number of common shares outstanding during the period, plus the incremental shares outstanding assuming the exercise of dilutive stock options and the vesting of restricted shares and performance shares, calculated using the treasury stock method. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, In January 2016, the FASB issued ASU 2016-01, 825-10) In August 2016, the FASB issued ASU 2016-15 In May 2017, the FASB issued ASU 2017-09, In March 2018, the FASB issued ASU 2018-05, one-time, non-cash re-measurement one-time re-measurement one-time Recent Accounting Pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, 2016-02 2016-02 right-of-use 2018-10, 2018-11, No. 2016-02 2018-20, 2018-11. In January 2017, the FASB issued ASU 2017-04, 2017-04 2017-04 In August 2017, the FASB issued ASU 2017-12, 2018-16, In February 2018, the FASB issued ASU 2018-02, In June 2018, the FASB issued ASU 2018-07, In July 2018, the FASB issued ASU 2018-09, In August 2018, the FASB issued ASU 2018-13, In August 2018, the FASB issued ASU 2018-15, Other-Internal-Use 350-40): internal-use 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Depreciable Assets | The estimated useful lives of depreciable assets are primarily as follows: Laptop Computers 18 months Equipment 3-5 years Enterprise Software 3-5 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) - Accounting Standards Update 2014-09 [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment | The following table depicts the disaggregation of our revenues by contract type and operating segment: Years Ended December 31, 2018 2017 2016 (Amounts in millions) Data and Analytics Services Segment Time-and-material $ 18.9 $ 7.8 $ — Fixed-price Contracts 4.9 1.4 — Subtotal Data and Analytics Services $ 23.8 $ 9.2 $ — IT Staffing Services Segment Time-and-material $ 153.4 $ 138.6 $ 132.0 Fixed-price Contracts — 0.1 — Subtotal IT Staffing Services $ 153.4 $ 138.7 $ 132.0 Total Revenues $ 177.2 $ 147.9 $ 132.0 |
Summary of Revenue from External Customers | The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Years Ended December 31, 2018 2017 2016 (Amounts in millions) United States $ 172.6 $ 145.5 $ 132.0 Canada 3.1 1.7 — India and Other 1.5 0.7 — Total $ 177.2 $ 147.9 $ 132.0 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Consideration for Acquired Business | The following table summarizes the fair value of consideration for the Acquired Business on the July 13, 2017 closing date: (in thousands) Amounts Cash purchase price at closing $ 35,750 Working capital adjustments (861 ) Estimated payout of contingent consideration (1) 17,125 Total Fair Value of Consideration $ 52,014 (1) Based on a valuation conducted by an independent third party, the fair value of contingent consideration at the closing date was determined to be $17,125,000. |
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 $ 341 Sale of common stock in a private placement transactions 6,000 Term loan debt facility 30,500 Revolving line of credit 9,000 Payoff of previous credit facility (10,091 ) Cash paid at Closing $ 35,750 |
Schedule of Fair Value of Net Assets Acquired | The valuation of net assets acquired is as follows: (in thousands) Amounts Current Assets $ 6,909 Fixed Assets and Other 215 Identifiable intangible assets: Client relationships 16,671 Covenant not-to-compete 761 Trade name 1,221 Technology 1,209 Total identifiable intangible assets 19,862 Goodwill 27,417 Current liabilities (2,389 ) Net Assets Acquired $ 52,014 |
Summary of Unaudited Pro Forma Results | The following reflects the Company’s unaudited pro forma results had the results of InfoTrellis been included for all periods presented: Years Ended December 31, 2018 2017 2016 (Amounts in Thousands, except per share data) Revenue $ 177,164 $ 158,785 $ 157,077 Net income $ 6,691 $ 2,388 $ 6,778 Earnings per share—diluted $ .60 $ .22 $ .63 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of Goodwill | A reconciliation of the beginning and ending amounts of goodwill for the three years ended December 31, 2018 is as follows: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Goodwill, beginning balance $ 35,844 $ 8,427 $ 8,427 Addition in current period — 27,417 — Reduction in current period (9,738 ) — — Goodwill, ending balance $ 26,106 $ 35,844 $ 8,427 |
Components of Identifiable Intangible assets | Identifiable intangible assets were comprised of the following as of December 31, 2018 and 2017: As of December 31, 2018 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 2,361 $ 5,638 Covenant-not-to-compete 5 319 226 93 Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 16,671 2,025 14,646 Covenant-not-to-compete 5 761 222 539 Trade name 5 1,221 356 865 Technology 7 1,209 252 957 Total Intangible Assets $ 28,429 $ 5,691 $ 22,738 As of December 31, 2017 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 1,694 $ 6,305 Covenant-not-to-compete 5 319 162 157 Trade name 3 249 211 38 Data and Analytics Services: Client relationships 12 16,671 636 16,035 Covenant-not-to-compete 5 761 70 691 Trade name 5 1,221 112 1,109 Technology 7 1,209 79 1,130 Total Intangible Assets $ 28,429 $ 2,964 $ 25,465 |
Schedule of Estimated Amortization Expense | The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2019 through 2023 is as follows: Years Ended December 31, 2019 2020 2021 2022 2023 (Amounts in thousands) Amortization expense $ 2,689 $ 2,654 $ 2,625 $ 2,443 $ 2,229 |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Annual Aggregate Outstanding Debt | As of December 31, 2018, the annual aggregate maturities of our outstanding debt (exclusive of deferred financing costs amortization) during each of the next five years are as follows: Total Amount (Amounts in thousands) 2019 $ 4,575 2020 4,575 2021 4,956 2022 24,965 2023 — Total $ 39,071 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Rental Payments | The Company rents certain office facilities and equipment under noncancelable operating leases, which provide for the following future minimum rental payments as of December 31, 2018: Total Amount (Amounts in thousands) 2019 $ 1,583 2020 1,528 2021 1,051 2022 1,035 2023 1,039 Thereafter 208 Total $ 6,444 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's Stock Option Activity | Following is a summary of the Company’s stock option activity for the three years ended December 31, 2018: Number of Weighted Average Outstanding at December 31, 2015 472,000 $ 0.50 Granted 670,000 3.52 Exercised (252,000 ) 0.40 Cancelled / forfeited — — Outstanding at December 31, 2016 890,000 2.80 Granted — — Exercised (180,000 ) 0.43 Cancelled / forfeited (36,000 ) 2.90 Outstanding at December 31, 2017 674,000 3.43 Granted 495,000 6.72 Exercised (52,000 ) 2.08 Cancelled / forfeited (6,000 ) 3.20 Outstanding at December 31, 2018 1,111,000 $ 4.95 |
Summary of Information Regarding the Company's Outstanding and Exercisable Stock Options | The table below summarizes information regarding the Company’s outstanding and exercisable stock options as of December 31, 2018: Range of Exercise Prices: Options Weighted Average Weighted Average $0.01 to $2.00 6,000 1.0 $ 1.18 $2.01 to $4.00 610,000 7.2 $ 3.55 $4.01 to $6.00 315,000 9.9 $ 6.30 $6.01 to $8.00 180,000 9.2 $ 7.46 1,111,000 8.3 $ 4.95 Range of Exercise Prices: Options Weighted Average Weighted Average $0.01 to $2.00 6,000 1.0 $ 1.18 $2.01 to $4.00 208,000 7.2 $ 3.61 $4.01 to $6.00 — — — $6.01 to $8.00 — — — 214,000 7.0 $ 3.54 |
Summary of Assumptions with Respect to the Black-Scholes Option Pricing Model | The Company used the following assumptions with respect to the Black-Scholes option pricing model for Mastech Digital stock options issued during 2018 and 2016. Years Ended December 31, 2018 2017 2016 Stock option grants: Weighted-average risk-free interest rate 2.8 % — 1.34 % Weighted-average dividend yield 0.0 % — 0.0 % Expected volatility 50.6 % — 55.9 % Expected term (in years) 5.0 — 5.5 Weighted-average fair value $ 3.15 $ — $ 3.52 |
Summary of Mastech's Restricted Stock Unit Activity | Following is a summary of Mastech’s restricted stock activity for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 Beginning outstanding balance 30,500 65,110 134,740 Awarded 25,380 — — Released (21,500 ) (34,610 ) (44,630 ) Forfeited — — (25,000 ) Ending outstanding balance 34,380 30,500 65,110 |
Summary of Mastech Performance Share Unit Activity | Following is a summary of Mastech performance share activity for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 Beginning outstanding balance — — 152,838 Awarded — — — Released — — — Forfeited — — (152,838 ) Ending outstanding balance — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | The components of income before income as shown in the accompanying Consolidated Statement of Operations, consisted of the following for the years ended December 31, 2018, 2017 and 2016: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Income before income taxes: Domestic $ 7,520 $ 1,875 $ 3,544 Foreign 1,894 1,073 476 Income before income taxes $ 9,414 $ 2,948 $ 4,020 |
Provision for Income Taxes | The provision for income taxes, as shown in the accompanying Consolidated Statement of Operations, consisted of the following for the years ended December 31, 2018, 2017 and 2016: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Current provision: Federal $ 1,494 $ 1,101 $ 1,189 State 273 159 101 Foreign 807 276 161 Total current provision 2,574 1,536 1,451 Deferred provision: Federal 317 (205 ) 43 State 96 (73 ) 6 Foreign (264 ) 64 — Total deferred provision 149 (214 ) 49 Total provision for income taxes $ 2,723 $ 1,322 $ 1,500 |
Reconciliation of Income Taxes | The reconciliation of income taxes computed using our statutory U.S. income tax rate and the provision for income taxes for the years ended December 31, 2018, 2017 and 2016 were as follows: Years Ended December 31, (Amounts in thousands) 2018 2017 2016 Income taxes computed at the federal statutory rate $ 1,977 21.0 % $ 1,002 34.0 % $ 1,367 34.0 % State income taxes, net of federal tax benefit 387 4.1 116 3.9 107 2.7 Excess tax benefits from stock options/restricted shares (93 ) (1.0 ) (140 ) (4.7 ) — — Estimated charge for U.S. tax reform 251 2.7 372 12.6 — — Difference in tax rate on foreign earnings/other 201 2.1 (28 ) (1.0 ) 26 0.6 $ 2,723 28.9 % $ 1,322 44.8 % $ 1,500 37.3 % |
Components of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities were as follows: At December 31, 2018 2017 (Amounts in thousands) Deferred tax assets: Allowance for doubtful accounts $ 109 $ 99 Accrued vacation and bonuses 228 230 Stock-based compensation expense 194 119 Acquisition-related transaction costs 507 501 Total deferred tax assets 1,038 949 Deferred tax liabilities: Prepaid expenses 186 160 Depreciation, intangibles and other 555 321 Total deferred tax liabilities 741 481 Net deferred tax asset $ 297 $ 468 |
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, for the three years ended December 31, 2018 is as follows: Years Ended December 31, (Amounts in thousands) 2018 2017 2016 Unrecognized tax benefits, beginning balance $ 95 $ 128 $ 135 Additions related to current period 208 — 20 Additions related to prior periods — — — Reductions related to prior periods (40 ) (33 ) (27 ) Unrecognized tax benefits, ending balance $ 263 $ 95 $ 128 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2018 (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded Interest-Rate Swap Contracts $96 Interest Expense $(2) Interest Expense $— The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2017 (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded Interest-Rate Swap Contracts $21 Interest Expense $(56) Interest Expense $— |
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 Consolidated Balance Sheets (in thousands): December 31, 2018 December 31, 2017 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current Assets $ 106 Other Current Assets $ 9 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Denominators of Basic and Diluted EPS Computations | The following table sets forth the denominators of the basic and diluted EPS computations. Years Ended December 31, (Amounts in thousands): 2018 2017 2016 Weighted-average shares outstanding: Basic 10,950 9,924 8,786 Stock options and restricted share units 211 74 178 Diluted 11,161 9,998 8,964 |
Computation of Basic EPS | The following table sets forth the computation of basic EPS utilizing net income and the Company’s weighted-average common stock outstanding: Years Ended December 31, (Amounts in thousands, except per share data): 2018 2017 2016 Net income $ 6,691 $ 1,626 $ 2,520 Basic weighted-average shares outstanding 10,950 9,924 8,786 Basic EPS $ .61 $ .16 $ .29 |
Computation of Diluted EPS | The following table sets forth the computation of diluted EPS utilizing net income and the Company’s weighted-average common stock outstanding plus the weighted-average of stock options, restricted shares and performance shares: Years Ended December 31, (Amounts in thousands, except per share data): 2018 2017 2016 Net income $ 6,691 $ 1,626 $ 2,520 Diluted weighted-average shares outstanding 11,161 9,998 8,964 Diluted EPS $ .60 $ .16 $ .28 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and (Liabilities) at Fair Value Measured on Recurring Basis | The following table summarizes the basis used to measure financial assets and (liabilities) at fair value on a recurring basis: Fair Value as of December 31, 2018 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ 106 $ — $ 106 Contingent consideration liabilities $ — $ — $ (6,069 ) $ (6,069 ) Fair Value as of December 31, 2017 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ 9 $ — $ 9 Contingent consideration liabilities $ — $ — $ (17,125 ) $ (17,125 ) |
Schedule of Changes in Level 3 Fair Values for Contingent Consideration Liability | The following table provides information regarding changes in the Company’s Level 3 fair values for the contingent consideration liability for the three years ended December 31, 2018: Years Ended December 31, 2018 2017 2016 (Amounts in thousands) Beginning balance $ 17,125 $ — $ — Contingent consideration incurred — 17,125 — Payments made — — — Revaluation (11,056 ) — — Ending balance $ 6,069 $ 17,125 $ — |
Summary of Financial Assets (Liabilities) at Fair Value Measured on Non-recurring Basis | At December 31, 2018 and December 31, 2017, the Company carried the following financial assets (liabilities) at fair value measured on a non-recurring Fair Value as of December 31, 2018 (Amounts in thousands) Level 1 Level 2 Level 3 Total Goodwill $ — $ — $ 26,106 $ 26,106 Fair Value as of December 31, 2017 (Amounts in thousands) Level 1 Level 2 Level 3 Total Goodwill $ — $ — $ 35,844 $ 35,844 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | Revenues Gross Net Earnings Per Year Ended December 31, 2018 Basic Diluted First quarter $ 43,333 $ 10,261 $ 1,380 $ .13 $ .12 Second quarter 44,894 10,892 2,817 .26 .25 Third quarter 44,292 10,710 1,620 .15 .14 Fourth quarter 44,645 10,665 874 .08 .08 Annual $ 177,164 $ 42,528 $ 6,691 $ .61 $ .60 Revenues Gross Net Earnings (loss) Per Year Ended December 31, 2017 Basic Diluted First quarter $ 33,100 $ 6,209 $ 201 $ .02 $ .02 Second quarter 35,086 7,077 696 .08 .08 Third quarter 39,228 8,818 (136 ) (.01 ) (.01 ) Fourth quarter 40,468 9,525 865 .08 .08 Annual $ 147,882 $ 31,629 $ 1,626 $ .16 $ .16 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | Below are the operating results of our reporting segments: At December 31, 2018 2017 2016 (Amounts in Thousands) Revenues: Data and analytics services $ 23,803 $ 9,185 $ — IT staffing services 153,361 138,697 132,008 Total revenues $ 177,164 $ 147,882 $ 132,008 Gross Margin %: Data and analytics services 44.0 % 44.8 % 0.0 % IT staffing services 20.9 % 19.8 % 19.9 % Total gross margin % 24.0 % 21.4 % 19.9 % Segment operating income: Data and analytics services $ 5,710 $ 2,531 $ — IT staffing services 7,184 5,279 5,320 Subtotal 12,894 7,810 5,320 Amortization of acquired intangible assets (2,727 ) (1,710 ) (813 ) Revaluation of contingent consideration liability 11,056 — — Goodwill impairment (9,738 ) — — Acquisition-related transaction expenses 140 (2,019 ) — Interest expenses and other, net (2,211 ) (1,133 ) (487 ) Income before income taxes $ 9,414 $ 2,948 $ 4,020 |
Summary of Assets, Depreciation and Amortization and Capital Expenditures by Segment | Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment: Total Assets Depreciation & Amortization Capital Expenditures Amounts in thousands: 2018 2017 2016 2018 2017 2016 2018 2017 2016 Data and Analytics Services $ 43,182 $ 53,683 $ — $ 2,051 $ 925 $ — $ 175 $ 11 $ — IT Staffing Services 49,402 44,921 39,406 1,131 1,017 1,016 596 1,428 105 Total $ 92,584 $ 98,604 $ 39,406 $ 3,182 $ 1,942 $ 1,016 $ 771 $ 1,439 $ 105 |
Summary of Revenue from External Customers and Long-lived Assets | Below is geographic information related to our revenues from external customers and long-lived assets: Revenues Equipment, Enterprise Amounts in thousands: 2018 2017 2016 2018 2017 2016 United States $ 172,610 $ 145,513 $ 132,008 $ 1,956 $ 1,730 $ 494 Canada 3,125 1,729 — 17 19 — India and Other 1,429 640 — 235 150 64 Total $ 177,164 $ 147,882 $ 132,008 $ 2,208 $ 1,899 $ 558 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jul. 24, 2018 | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2018USD ($)SegmentsSegmentshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Line Items] | |||||||
Stock split description | Two-for-one | ||||||
Stock split conversion ratio | 2 | ||||||
Allowance for uncollectible accounts | $ 408,000 | $ 398,000 | $ 408,000 | $ 398,000 | |||
Bad debt (credit) expense | 10,000 | $ 10,000 | $ 75,000 | ||||
Goodwill impairment loss | 9,738,000 | ||||||
Revaluation of contingent consideration liability | $ (11,056,000) | ||||||
Number of reportable segment | Segments | 2 | ||||||
Stock Incentive Plan, shares available for issuance | shares | 3,600,000 | 3,600,000 | |||||
Vesting period | 5 years | 5 years | |||||
Treasury stock, shares | shares | 1,643,846 | 1,641,272 | 1,643,846 | 1,641,272 | |||
Repurchases of treasury stock | $ 4,174,000 | $ 4,154,000 | $ 4,174,000 | $ 4,154,000 | |||
Expiration period of stock repurchase program | Dec. 22, 2016 | ||||||
Subsequent Event [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Lease asset | $ 5,700,000 | ||||||
Lease liability | $ 5,700,000 | ||||||
Minimum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period | 3 years | ||||||
Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period | 5 years | ||||||
Info Trellis Inc [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stock split description | On July 24, 2018, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock. | ||||||
Stock split conversion ratio | 2 | ||||||
Stock split record date | Aug. 13, 2018 | ||||||
Stock split, stock issued date | Aug. 24, 2018 | ||||||
Allowance for uncollectible accounts | 408,000 | 398,000 | $ 408,000 | 398,000 | |||
Bad debt (credit) expense | 10,000 | 10,000 | $ 75,000 | ||||
Depreciation and amortization expense related to fixed assets | 455,000 | 232,000 | $ 203,000 | ||||
Impairment on goodwill and intangible assets | 0 | ||||||
Goodwill impairment loss | 9,738,000 | ||||||
Valuation allowance provided | 0 | 0 | |||||
Estimated one-time, non-cash charge related to enactment of Tax and Jobs Act of 2017 | 372,000 | ||||||
Re-measurement of deferred tax assets arising from a lower U.S. corporate tax rate | 294,000 | ||||||
One-time transition tax applicable to new dividend exemption system related to foreign earnings | 165,000 | 78,000 | |||||
Deferred tax assets additional expense | 86,000 | 86,000 | |||||
Uncertain tax positions | 263,000 | 95,000 | 263,000 | 95,000 | |||
Revaluation of contingent consideration liability | $ (11,056,000) | ||||||
Number of reportable segment | Segment | 2 | ||||||
Info Trellis Inc [Member] | Enterprise Software [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Software development cost capitalized | 1,800,000 | 1,300,000 | $ 1,800,000 | $ 1,300,000 | |||
Info Trellis Inc [Member] | Minimum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life, intangible assets | 3 years | ||||||
Info Trellis Inc [Member] | Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life, intangible assets | 12 years | ||||||
Accounting Standards Update 2018-05 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
One-time, non-cash charge related to enactment of the Act | 372,000 | ||||||
Re-measurement of deferred tax assets arising from a lower U.S. corporate tax rate | 86,000 | 294,000 | |||||
One-time transition tax applicable to new dividend exemption system related to foreign earnings | $ 165,000 | $ 78,000 | |||||
Accounting Standards Update 2014-09 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of billing expense revenues | 2.00% | ||||||
Accounting Standards Update 2014-09 [Member] | Info Trellis Inc [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of billing expense revenues | 2.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Depreciable Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Laptop Computers [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable assets | 18 months |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable assets | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable assets | 5 years |
Enterprise Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable assets | 3 years |
Enterprise Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable assets | 5 years |
Revenue from Contract with Cust
Revenue from Contract with Customer - Additional Information (Detail) - Accounting Standards Update 2014-09 [Member] - Customer | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Percentage of billing expense revenues | 2.00% | ||
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Number of customers | 1 | 2 | |
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | CGI [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of number of customers revenue | 12.80% | 12.60% | |
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | Accenture PLC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of number of customers revenue | 10.70% | ||
Accounts Receivable [Member] | Revenue from Rights Concentration Risk [Member] | CGI [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of number of customers revenue | 17.90% | 7.30% | |
Accounts Receivable [Member] | Revenue from Rights Concentration Risk [Member] | Accenture PLC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of number of customers revenue | 5.00% | ||
Top Ten Customers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage of total revenue | 47.00% | 47.00% | 44.00% |
Data and Analytics Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue from customers | 100.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | $ 177.2 | $ 147.9 | $ 132 |
Data and Analytics Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | 23.8 | 9.2 | |
Data and Analytics Services [Member] | Time-and-Material Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | 18.9 | 7.8 | |
Data and Analytics Services [Member] | Fixed-Price Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | 4.9 | 1.4 | |
IT Staffing Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | 153.4 | 138.7 | 132 |
IT Staffing Services [Member] | Time-and-Material Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | $ 153.4 | 138.6 | $ 132 |
IT Staffing Services [Member] | Fixed-Price Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues by contract type and operating segment | $ 0.1 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue from External Customers (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||
Total | $ 177.2 | $ 147.9 | $ 132 |
United States [Member] | |||
Revenue from External Customer [Line Items] | |||
Total | 172.6 | 145.5 | $ 132 |
Canada [Member] | |||
Revenue from External Customer [Line Items] | |||
Total | 3.1 | 1.7 | |
India and Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Total | $ 1.5 | $ 0.7 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) | Jul. 13, 2017USD ($) | Jul. 07, 2017USD ($)Agreement$ / sharesshares | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2018USD ($) | Apr. 20, 2018USD ($) | Apr. 19, 2018USD ($) | Apr. 19, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Contingent consideration liability | $ 6,069,000 | $ 17,125,000 | $ 6,069,000 | $ 17,125,000 | |||||||||||||
Revolving credit availability | 9,000,000 | 13,000,000 | 9,000,000 | 13,000,000 | |||||||||||||
Revenues | 44,645,000 | $ 44,292,000 | $ 44,894,000 | $ 43,333,000 | 40,468,000 | $ 39,228,000 | $ 35,086,000 | $ 33,100,000 | 177,164,000 | 147,882,000 | $ 132,008,000 | ||||||
Net income | 874,000 | $ 1,620,000 | $ 2,817,000 | $ 1,380,000 | $ 865,000 | $ (136,000) | $ 696,000 | $ 201,000 | 6,691,000 | 1,626,000 | $ 2,520,000 | ||||||
PNC Bank, National Association [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Credit agreement provides for total aggregate commitment | $ 65,000,000 | ||||||||||||||||
Share price for purposes of calculation (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||
Gross proceeds from private placement | 6,000,000 | ||||||||||||||||
Revolving Line of Credit [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Credit agreement provides for total aggregate commitment | 32,500,000 | 32,500,000 | $ 32,500,000 | ||||||||||||||
Revolving credit availability | 22,500,000 | 22,500,000 | 22,500,000 | $ 27,500,000 | $ 27,500,000 | ||||||||||||
Revolving Line of Credit [Member] | Swing Loans [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Credit agreement provides for total aggregate commitment | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 3,000,000 | $ 3,000,000 | ||||||||||||
Term Loan Facility [Member] | PNC Bank, National Association [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Term loan facility | 30,500,000 | ||||||||||||||||
Delayed Draw Term Loan Facility [Member] | PNC Bank, National Association [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Term loan facility | 7,000,000 | ||||||||||||||||
Ashok Trivedi and Sunil Wadhwani [Member] | PNC Bank, National Association [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Stock issued (in shares) | shares | 1,700,000 | ||||||||||||||||
Maximum [Member] | Revolving Line of Credit [Member] | PNC Bank, National Association [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revolving credit availability | 27,500,000 | ||||||||||||||||
Revolving credit facility | 37,500,000 | ||||||||||||||||
Info Trellis Inc [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Date of acquisition | Jul. 13, 2017 | ||||||||||||||||
Business acquisition, description | On July 7, 2017, Mastech Digital, Inc., through its wholly-owned subsidiaries Mastech InfoTrellis, Inc., Mastech InfoTrellis Digital, Ltd., Mastech Digital Data, Inc. and Mastech Digital Private Limited (collectively, the “Company Entities”), entered into two Asset Purchase Agreements and a Share Purchase Agreement (collectively, the “Purchase Agreements”) to acquire substantially all of the assets comprising the consulting services business in the areas of master data management, data integration and big data (the “Acquired Business”) of InfoTrellis Inc., InfoTrellis, Inc. and 2291496 Ontario Inc., including all outstanding shares of InfoTrellis India Private Limited (collectively, “InfoTrellis”). The aforementioned transaction was closed on July 13, 2017. | ||||||||||||||||
Cash consideration | 35,750,000 | ||||||||||||||||
Working capital adjustments excluded | (861,000) | ||||||||||||||||
Contingent consideration in deferred cash payments | 19,250,000 | ||||||||||||||||
Fair value of contingent consideration liability | $ 17,125,000 | ||||||||||||||||
Contingent consideration liability | $ 0 | ||||||||||||||||
Transaction costs related to acquisition | 2,000,000 | ||||||||||||||||
Reversal of transaction costs related to acquisition | $ 140,000 | ||||||||||||||||
Revenues | 9,200,000 | ||||||||||||||||
Net income | $ 1,100,000 | ||||||||||||||||
Info Trellis Inc [Member] | Asset Purchase Agreements [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Number of purchase agreement | Agreement | 2 | ||||||||||||||||
Info Trellis Inc [Member] | Share Purchase Agreement [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Number of purchase agreement | Agreement | 1 | ||||||||||||||||
Info Trellis Inc [Member] | Actual Year 1 EBIT [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
EBIT set as milestone | $ 10,000,000 | ||||||||||||||||
Info Trellis Inc [Member] | Actual Year 1 EBIT [Member] | Maximum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Fair value of contingent consideration liability | 8,250,000 | ||||||||||||||||
Info Trellis Inc [Member] | Actual Year 2 EBIT [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
EBIT set as milestone | 10,700,000 | ||||||||||||||||
Info Trellis Inc [Member] | Actual Year 2 EBIT [Member] | Maximum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Fair value of contingent consideration liability | $ 11,000,000 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value of Consideration for Acquired Business (Detail) - Info Trellis Inc [Member] $ in Thousands | Jul. 13, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash purchase price at closing | $ 35,750 |
Working capital adjustments | (861) |
Estimated payout of contingent consideration | 17,125 |
Total Fair Value of Consideration | $ 52,014 |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Value of Consideration for Acquired Business (Parenthetical) (Detail) $ in Thousands | Jul. 13, 2017USD ($) |
Info Trellis Inc [Member] | |
Business Acquisition [Line Items] | |
Fair value of contingent consideration | $ 17,125 |
Business Combinations - Summa_3
Business Combinations - Summary of Source of Funds (Detail) - USD ($) $ in Thousands | Jul. 13, 2017 | Dec. 31, 2017 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Sale of common stock in a private placement transactions | $ 6,000 | ||
Revolving Line of Credit [Member] | |||
Business Acquisition [Line Items] | |||
Outstanding borrowings amount | $ 9,000 | $ 13,600 | |
Info Trellis Inc [Member] | |||
Business Acquisition [Line Items] | |||
Cash balances on hand | $ 341 | ||
Sale of common stock in a private placement transactions | 6,000 | ||
Payoff of previous credit facility | (10,091) | ||
Cash paid at Closing | 35,750 | ||
Info Trellis Inc [Member] | Term Loan Debt Facility [Member] | |||
Business Acquisition [Line Items] | |||
Outstanding borrowings amount | 30,500 | ||
Info Trellis Inc [Member] | Revolving Line of Credit [Member] | |||
Business Acquisition [Line Items] | |||
Outstanding borrowings amount | $ 9,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Valuation of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 13, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Identifiable intangible assets: | |||||
Goodwill | $ 26,106 | $ 35,844 | $ 8,427 | $ 8,427 | |
Info Trellis Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Current Assets | $ 6,909 | ||||
Fixed Assets and Other | 215 | ||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | 19,862 | ||||
Goodwill | 27,417 | ||||
Current liabilities | (2,389) | ||||
Net Assets Acquired | 52,014 | ||||
Info Trellis Inc [Member] | Client Relationships [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | 16,671 | ||||
Info Trellis Inc [Member] | Covenant Not-to-Compete [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | 761 | ||||
Info Trellis Inc [Member] | Trade Name [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | 1,221 | ||||
Info Trellis Inc [Member] | Technology [Member] | |||||
Identifiable intangible assets: | |||||
Identifiable intangible assets | $ 1,209 |
Business Combinations - Summa_4
Business Combinations - Summary of Unaudited Pro Forma Results (Detail) - Info Trellis Inc [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Revenue | $ 177,164 | $ 158,785 | $ 157,077 |
Net income | $ 6,691 | $ 2,388 | $ 6,778 |
Earnings per share-diluted | $ 0.60 | $ 0.22 | $ 0.63 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 13, 2017 | Dec. 31, 2015 | Jun. 15, 2015 | |
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 26,106 | $ 35,844 | $ 8,427 | $ 8,427 | ||
Goodwill impairment | 9,738 | |||||
Amortization expense | 2,727 | $ 1,710 | $ 813 | |||
Hudson IT [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 8,427 | |||||
Info Trellis Inc [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 27,417 | |||||
Goodwill impairment | $ 9,738 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Reconciliation of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Net [Abstract] | |||
Goodwill, beginning balance | $ 35,844 | $ 8,427 | $ 8,427 |
Addition in current period | 27,417 | 0 | |
Reduction in current period | (9,738) | 0 | |
Goodwill, ending balance | $ 26,106 | $ 35,844 | $ 8,427 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Identifiable Intangible assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets [Line Items] | ||
Total Intangible Assets, Gross Carrying Value | $ 28,429 | $ 28,429 |
Intangible Assets, Accumulated Amortization | 5,691 | 2,964 |
Total Intangible Assets, Net Carrying Value | $ 22,738 | $ 25,465 |
Client Relationships [Member] | IT Staffing Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 12 years | 12 years |
Intangible Assets, Gross Carrying Value | $ 7,999 | $ 7,999 |
Intangible Assets, Accumulated Amortization | 2,361 | 1,694 |
Intangible Assets, Net Carrying Value | $ 5,638 | $ 6,305 |
Client Relationships [Member] | Data and Analytics Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 12 years | 12 years |
Intangible Assets, Gross Carrying Value | $ 16,671 | $ 16,671 |
Intangible Assets, Accumulated Amortization | 2,025 | 636 |
Intangible Assets, Net Carrying Value | $ 14,646 | $ 16,035 |
Covenant Not-to-Compete [Member] | IT Staffing Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 319 | $ 319 |
Intangible Assets, Accumulated Amortization | 226 | 162 |
Intangible Assets, Net Carrying Value | $ 93 | $ 157 |
Covenant Not-to-Compete [Member] | Data and Analytics Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 761 | $ 761 |
Intangible Assets, Accumulated Amortization | 222 | 70 |
Intangible Assets, Net Carrying Value | $ 539 | $ 691 |
Trade Name [Member] | IT Staffing Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 3 years | 3 years |
Intangible Assets, Gross Carrying Value | $ 249 | $ 249 |
Intangible Assets, Accumulated Amortization | $ 249 | 211 |
Intangible Assets, Net Carrying Value | $ 38 | |
Trade Name [Member] | Data and Analytics Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 1,221 | $ 1,221 |
Intangible Assets, Accumulated Amortization | 356 | 112 |
Intangible Assets, Net Carrying Value | $ 865 | $ 1,109 |
Technology [Member] | Data and Analytics Services [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Amortization Period (In Years) | 7 years | 7 years |
Intangible Assets, Gross Carrying Value | $ 1,209 | $ 1,209 |
Intangible Assets, Accumulated Amortization | 252 | 79 |
Intangible Assets, Net Carrying Value | $ 957 | $ 1,130 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Intangible Liability Disclosure [Abstract] | |
Estimated aggregate amortization expense for year ending 2019 | $ 2,689 |
Estimated aggregate amortization expense for year ending 2020 | 2,654 |
Estimated aggregate amortization expense for year ending 2021 | 2,625 |
Estimated aggregate amortization expense for year ending 2022 | 2,443 |
Estimated aggregate amortization expense for year ending 2023 | $ 2,229 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 1,294,000 | $ 2,478,000 |
Restrictions on the Company's cash balances | $ 0 | $ 0 |
Credit Facility - Additional in
Credit Facility - Additional information (Detail) - USD ($) | Apr. 20, 2018 | Apr. 19, 2018 | Jul. 13, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 19, 2017 |
Line of Credit Facility [Line Items] | ||||||
Current borrowing capacity under line of credit facility | $ 9,000,000 | $ 13,000,000 | ||||
Payment of deferred financing costs | 71,000 | 435,000 | ||||
Deferred financing costs | 367,000 | 395,000 | ||||
Borrowings amount | 30,500,000 | |||||
Long term debt | $ 34,129,000 | 34,149,000 | ||||
Term Loan Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maturity date | Jul. 13, 2022 | |||||
Outstanding borrowings amount | $ 25,500,000 | 29,500,000 | ||||
Term Loan Facility [Member] | Installments Due on October 1 2017 Through and Including July 1 2018 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, periodic payment percentage | 3.125% | |||||
Term Loan Facility [Member] | Installments Payable on October 1 2018 Through and Including July 1 2021 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, periodic payment percentage | 3.75% | |||||
Term Loan Facility [Member] | Installments Payable on October 1 2021 Through and Including Maturity Date [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, periodic payment percentage | 5.00% | |||||
Delayed Draw Term Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 7,000,000 | |||||
Continent consideration payment arrangement borrowings multiplier amount | $ 1,000,000 | |||||
Line of credit facility payment term description | The principal amount of each quarterly installment payable of each Delayed Draw Term Loan equals the product of the original balance of such Loan, multiplied by (i) 3.75% for quarterly installments due on October 1, 2018 through and including July 1, 2021; and (ii) 5.00% for quarterly installments payable on October 1, 2021 through and including the maturity date, with the maturity date payment equal to the outstanding amount of the loan on that date. | |||||
Delayed Draw Term Loan [Member] | Installments Payable on October 1 2021 Through and Including Maturity Date [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, periodic payment percentage | 5.00% | |||||
Delayed Draw Term Loan [Member] | Installments Due On October 1, 2018 Through and Including July 1, 2021 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, periodic payment percentage | 3.75% | |||||
Revolving Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 32,500,000 | $ 32,500,000 | ||||
Credit facility expiration period | 5 years | |||||
Current borrowing capacity under line of credit facility | 22,500,000 | $ 27,500,000 | $ 22,500,000 | $ 27,500,000 | ||
Outstanding borrowings amount | 13,600,000 | $ 9,000,000 | ||||
Long term debt | $ 13,600,000 | |||||
Revolving Line of Credit [Member] | United States [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of eligible accounts receivable | 85.00% | |||||
Percentage of eligible unbilled accounts | 60.00% | |||||
Revolving Line of Credit [Member] | Canada [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 10,000,000 | |||||
Percentage of eligible accounts receivable | 85.00% | |||||
Percentage of eligible unbilled accounts | 60.00% | |||||
Revolving Line of Credit [Member] | Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 5,000,000 | |||||
Revolving Line of Credit [Member] | Swing Loans [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | 5,000,000 | 3,000,000 | $ 5,000,000 | $ 3,000,000 | ||
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 | 65,000,000 | |||||
Payment of deferred financing costs | $ 506,000 | |||||
PNC Bank, N.A. [Member] | Term Loan Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | 30,500,000 | |||||
Borrowings amount | $ 30,500,000 | |||||
PNC Bank, N.A. [Member] | Delayed Draw Term Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | 7,000,000 | |||||
PNC Bank, N.A. [Member] | Revolving Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | 27,500,000 | |||||
Borrowings amount | $ 9,000,000 | |||||
Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility percentage margin over base rate | 1.25% | |||||
Term loan percentage margin over base rate | 2.50% | |||||
Revolving credit facility percentage margin adjusted LIBOR rate | 2.25% | |||||
Term loan percentage margin adjusted LIBOR rate | 3.50% | |||||
Commitment fee | 0.30% | |||||
Maximum [Member] | PNC Bank, N.A. [Member] | Revolving Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility additional borrowing capacity upon certain conditions | $ 10,000,000 | |||||
Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility percentage margin over base rate | 0.50% | |||||
Term loan percentage margin over base rate | 1.75% | |||||
Revolving credit facility percentage margin adjusted LIBOR rate | 1.50% | |||||
Term loan percentage margin adjusted LIBOR rate | 2.75% | |||||
Commitment fee | 0.20% |
Credit Facility - Schedule of A
Credit Facility - Schedule of Annual Aggregate Outstanding Debt (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |
2019 | $ 4,575 |
2020 | 4,575 |
2021 | 4,956 |
2022 | 24,965 |
2023 | 0 |
Total | $ 39,071 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Minimum Future Rental Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,583 |
2020 | 1,528 |
2021 | 1,051 |
2022 | 1,035 |
2023 | 1,039 |
Thereafter | 208 |
Total | $ 6,444 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 1.4 | $ 1.2 | $ 1.2 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contributions | $ 0 | $ 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 | $ 79,000 | $ 89,000 | $ 105,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | Jul. 24, 2018 | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares allocated for issuance to directors, officers and key personnel | shares | 3,600,000 | |||
Stock split conversion ratio | 2 | |||
Stock split description | Two-for-one | |||
Shares available for future grants | shares | 549,000 | |||
Stock options vesting period | 5 years | 5 years | ||
Expiration period | 10 years | |||
Price per share | $ / shares | $ 6.30 | |||
Aggregate intrinsic value of stock options | $ 1,700,000 | |||
Intrinsic value of vested and expected to vest stock options | 1,700,000 | |||
Intrinsic value of options exercised | 373,000 | $ 522,000 | $ 849,000 | |
Measurement date fair value of stock options vested | $ 228,000 | $ 198,000 | $ 0 | |
Number of Options, Granted | shares | 495,000 | 0 | 670,000 | |
Dividend yield assumption | 0.00% | 0.00% | ||
Expected term for stock option grants | 5 years | 0 years | 5 years 6 months | |
Stock-based compensation expense | $ 470,000 | $ 381,000 | $ 408,000 | |
Tax benefits | 128,000 | $ 141,000 | $ 152,000 | |
Expenses related to non-vested stock options | $ 2,000,000 | |||
Weighted-average remaining requisite service period | 3 years 10 months 24 days | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 3 years | |||
Expected term for stock option grants | 5 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 5 years | |||
Expected term for stock option grants | 5 years 6 months | |||
Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding and/or exercised stock options | shares | 2,564,000 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units released or outstanding vested | shares | 260,000 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units released or outstanding | shares | 227,000 | |||
Restricted Stock Units Activity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of restricted stock units outstanding | $ 217,000 | |||
Intrinsic value of restricted shares released | 178,000 | |||
Unrecognized compensation expense | $ 105,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Options Outstanding, Beginning Balance | 674,000 | 890,000 | 472,000 |
Number of Options, Granted | 495,000 | 0 | 670,000 |
Number of Options, Exercised | (52,000) | (180,000) | (252,000) |
Number of Options, Cancelled / forfeited | (6,000) | (36,000) | |
Number of Options Outstanding, Ending Balance | 1,111,000 | 674,000 | 890,000 |
Weighted Average Exercise Price, Beginning Balance | $ 3.43 | $ 2.80 | $ 0.50 |
Weighted Average Exercise Price, Granted | 6.72 | 3.52 | |
Weighted Average Exercise Price, Exercised | 2.08 | 0.43 | 0.40 |
Weighted Average Exercise Price, Cancelled / forfeited | 3.20 | 2.90 | |
Weighted Average Exercise Price, Ending Balance | $ 4.95 | $ 3.43 | $ 2.80 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Information Regarding the Company's Outstanding and Exercisable Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 1,111,000 | 674,000 | 890,000 | 472,000 |
Weighted Average Remaining Contractual Life (in years) | 8 years 3 months 18 days | |||
Weighted Average Exercise Price | $ 4.95 | $ 3.43 | $ 2.80 | $ 0.50 |
Options Exercisable | 214,000 | |||
Weighted average remaining contractual life, options exercisable | 7 years | |||
Weighted average exercise price, options exercisable | $ 3.54 | |||
Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 6,000 | |||
Lower range of exercise price | $ 0.01 | |||
Upper range of exercise price | $ 2 | |||
Weighted Average Remaining Contractual Life (in years) | 1 year | |||
Weighted Average Exercise Price | $ 1.18 | |||
Options Exercisable | 6,000 | |||
Range of exercise prices, minimum, options exercisable | $ 0.01 | |||
Range of exercise price, maximum, options exercisable | $ 2 | |||
Weighted average remaining contractual life, options exercisable | 1 year | |||
Weighted average exercise price, options exercisable | $ 1.18 | |||
Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 610,000 | |||
Lower range of exercise price | $ 2.01 | |||
Upper range of exercise price | $ 4 | |||
Weighted Average Remaining Contractual Life (in years) | 7 years 2 months 12 days | |||
Weighted Average Exercise Price | $ 3.55 | |||
Options Exercisable | 208,000 | |||
Range of exercise prices, minimum, options exercisable | $ 2.01 | |||
Range of exercise price, maximum, options exercisable | $ 4 | |||
Weighted average remaining contractual life, options exercisable | 7 years 2 months 12 days | |||
Weighted average exercise price, options exercisable | $ 3.61 | |||
Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 315,000 | |||
Lower range of exercise price | $ 4.01 | |||
Upper range of exercise price | $ 6 | |||
Weighted Average Remaining Contractual Life (in years) | 9 years 10 months 24 days | |||
Weighted Average Exercise Price | $ 6.30 | |||
Range of exercise prices, minimum, options exercisable | 4.01 | |||
Range of exercise price, maximum, options exercisable | $ 6 | |||
Weighted average remaining contractual life, options exercisable | 0 years | |||
Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding | 180,000 | |||
Lower range of exercise price | $ 6.01 | |||
Upper range of exercise price | $ 8 | |||
Weighted Average Remaining Contractual Life (in years) | 9 years 2 months 12 days | |||
Weighted Average Exercise Price | $ 7.46 | |||
Range of exercise prices, minimum, options exercisable | 6.01 | |||
Range of exercise price, maximum, options exercisable | $ 8 | |||
Weighted average remaining contractual life, options exercisable | 0 years |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Assumptions with Respect to the Black-Scholes Option Pricing Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Weighted-average risk-free interest rate | 2.80% | 1.34% | |
Weighted-average dividend yield | 0.00% | 0.00% | |
Expected volatility | 50.60% | 55.90% | |
Expected term (in years) | 5 years | 0 years | 5 years 6 months |
Weighted-average fair value | $ 3.15 | $ 3.52 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Mastech's Restricted Stock Unit Activity (Detail) - Restricted Stock Units Activity [Member] - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning outstanding balance | 30,500 | 65,110 | 134,740 |
Awarded | 25,380 | ||
Released | (21,500) | (34,610) | (44,630) |
Forfeited | (25,000) | ||
Ending outstanding balance | 34,380 | 30,500 | 65,110 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Mastech Performance Share Unit Activity (Detail) - Performance Shares [Member] - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning outstanding balance | 152,838 | ||
Awarded | 0 | 0 | 0 |
Released | 0 | 0 | 0 |
Forfeited | (152,838) | ||
Ending outstanding balance | 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income before income taxes: | |||
Domestic | $ 7,520 | $ 1,875 | $ 3,544 |
Foreign | 1,894 | 1,073 | 476 |
Income before income taxes | $ 9,414 | $ 2,948 | $ 4,020 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision: | |||
Federal | $ 1,494 | $ 1,101 | $ 1,189 |
State | 273 | 159 | 101 |
Foreign | 807 | 276 | 161 |
Total current provision | 2,574 | 1,536 | 1,451 |
Deferred provision: | |||
Federal | 317 | (205) | 43 |
State | 96 | (73) | 6 |
Foreign | (264) | 64 | |
Total deferred provision | 149 | (214) | 49 |
Total provision for income taxes | $ 2,723 | $ 1,322 | $ 1,500 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the federal statutory rate, Value | $ 1,977 | $ 1,002 | $ 1,367 |
State income taxes, net of federal tax benefit, Value | 387 | 116 | 107 |
Excess tax benefits from stock options/restricted shares | (93) | (140) | |
Estimated charge for U.S. tax reform | 251 | 372 | |
Difference in tax rate on foreign earnings/other | 201 | (28) | 26 |
Total provision for income taxes | $ 2,723 | $ 1,322 | $ 1,500 |
Income taxes computed at the federal statutory rate | 21.00% | 34.00% | 34.00% |
State income taxes, net of federal tax benefit | 4.10% | 3.90% | 2.70% |
Excess tax benefits from stock options/restricted shares | (1.00%) | (4.70%) | |
Estimated charge for U.S. tax reform | 2.70% | 12.60% | |
Difference in tax rate on foreign earnings/other | 2.10% | (1.00%) | 0.60% |
Effective for income tax rate, Total | 28.90% | 44.80% | 37.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 109 | $ 99 |
Accrued vacation and bonuses | 228 | 230 |
Stock-based compensation expense | 194 | 119 |
Acquisition-related transaction costs | 507 | 501 |
Total deferred tax assets | 1,038 | 949 |
Deferred tax liabilities: | ||
Prepaid expenses | 186 | 160 |
Depreciation, intangibles and other | 555 | 321 |
Total deferred tax liabilities | 741 | 481 |
Net deferred tax asset | $ 297 | $ 468 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 95 | $ 128 | $ 135 |
Additions related to current period | 208 | 20 | |
Additions related to prior periods | 0 | 0 | 0 |
Reductions related to prior periods | (40) | (33) | (27) |
Unrecognized tax benefits, ending balance | $ 263 | $ 95 | $ 128 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Accrued interest and penalties on unrecognized tax benefits | $ 10,000 | $ 12,000 | $ 15,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 13, 2017 | |
Interest Rate Swap Contracts [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Asset of fair value of the interest rate swap contracts | $ 106,000 | $ 9,000 | |
Interest Rate Risk Management [Member] | |||
Derivative [Line Items] | |||
Notional amount | 12,600,000 | 14,500,000 | |
Interest Rate Risk Management [Member] | Interest Rate Swap Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 15,000,000 | ||
Fixed rate of interest in swap contracts | 1.99% | ||
Interest Rate Risk Management [Member] | Interest Rate Swap Contracts [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Asset of fair value of the interest rate swap contracts | 106,000 | $ 9,000 | |
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) during the next 12-months | $ 50,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income (Detail) - Interest Rate Swap Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) recognized in OCI on Derivatives | $ 96 | $ 21 | $ 19 |
Cash Flow Hedging Relationships [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) recognized in OCI on Derivatives | 96 | 21 | |
Cash Flow Hedging Relationships [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) reclassified from Accumulated OCI to Income | (2) | (56) | |
Amount of Gain / (Loss) recognized in Income on Derivatives | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Information on Location and Amounts of Derivative Fair Values in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Swap Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Fair Value Asset | $ 106 | $ 9 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 13, 2017 | Jul. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 10, 2017 |
Equity, Class of Treasury Stock [Line Items] | |||||
New shares issued | $ 6,000 | ||||
Share issued price per share | $ 3.50 | $ 3.18 | |||
Proceeds from new shares issued | $ 6,000 | ||||
Shares purchased to satisfy employee tax obligation | 2,574 | 4,134 | |||
Average share price for additional shares purchased | $ 8.01 | $ 4.52 | |||
Private Placement [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
New shares issued, shares | 1,700,000 | ||||
Proceeds from new shares issued | $ 6,000 | ||||
Private Placement [Member] | Ashok Trivedi [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
New shares issued | $ 3,000 | ||||
Private Placement [Member] | Sunil Wadhwani [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
New shares issued | $ 3,000 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive securities not included in computation of earnings per share | 141,000 | 0 | 500,000 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Denominators of Basic and Diluted EPS Computations (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-average shares outstanding: | |||
Basic | 10,950 | 9,924 | 8,786 |
Stock options and restricted share units | 211 | 74 | 178 |
Diluted | 11,161 | 9,998 | 8,964 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 874 | $ 1,620 | $ 2,817 | $ 1,380 | $ 865 | $ (136) | $ 696 | $ 201 | $ 6,691 | $ 1,626 | $ 2,520 |
Basic weighted-average shares outstanding | 10,950 | 9,924 | 8,786 | ||||||||
Basic EPS | $ 0.08 | $ 0.15 | $ 0.26 | $ 0.13 | $ 0.08 | $ (0.01) | $ 0.08 | $ 0.02 | $ 0.61 | $ 0.16 | $ 0.29 |
Earnings per Share - Computat_2
Earnings per Share - Computation of Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 874 | $ 1,620 | $ 2,817 | $ 1,380 | $ 865 | $ (136) | $ 696 | $ 201 | $ 6,691 | $ 1,626 | $ 2,520 |
Diluted weighted-average shares outstanding | 11,161 | 9,998 | 8,964 | ||||||||
Diluted EPS | $ 0.08 | $ 0.14 | $ 0.25 | $ 0.12 | $ 0.08 | $ (0.01) | $ 0.08 | $ 0.02 | $ 0.60 | $ 0.16 | $ 0.28 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets (Liabilities) at Fair Value Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | $ (6,069) | $ (17,125) |
Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial asset | 106 | 9 |
Level 2 [Member] | Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial asset | 106 | 9 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | $ (6,069) | $ (17,125) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Line Items] | |
Revaluation of contingent consideration liability | $ (11,056) |
Goodwill impairment | 9,738 |
Info Trellis Inc [Member] | |
Fair Value Disclosures [Line Items] | |
Revaluation of contingent consideration liability | (11,056) |
Goodwill impairment | $ 9,738 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Changes in Level 3 Fair Values for Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $ 17,125 | ||
Contingent consideration incurred | $ 17,125 | ||
Payments made | 0 | 0 | $ 0 |
Revaluation | (11,056) | ||
Ending balance | $ 6,069 | $ 17,125 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Assets (Liabilities) at Fair Value Measured on Non-recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Goodwill | $ 26,106 | $ 35,844 | $ 8,427 | $ 8,427 |
Level 3 [Member] | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Goodwill | $ 26,106 | $ 35,844 |
Quarterly Financial Informati_3
Quarterly Financial Information from Continuing Operations - Summary of Quarterly Financial Information from Continuing Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 44,645 | $ 44,292 | $ 44,894 | $ 43,333 | $ 40,468 | $ 39,228 | $ 35,086 | $ 33,100 | $ 177,164 | $ 147,882 | $ 132,008 |
Gross profit | 10,665 | 10,710 | 10,892 | 10,261 | 9,525 | 8,818 | 7,077 | 6,209 | 42,528 | 31,629 | 26,297 |
Net income | $ 874 | $ 1,620 | $ 2,817 | $ 1,380 | $ 865 | $ (136) | $ 696 | $ 201 | $ 6,691 | $ 1,626 | $ 2,520 |
Earnings (loss) Per Share, Basic | $ 0.08 | $ 0.15 | $ 0.26 | $ 0.13 | $ 0.08 | $ (0.01) | $ 0.08 | $ 0.02 | $ 0.61 | $ 0.16 | $ 0.29 |
Earnings (loss) Per Share, Diluted | $ 0.08 | $ 0.14 | $ 0.25 | $ 0.12 | $ 0.08 | $ (0.01) | $ 0.08 | $ 0.02 | $ 0.60 | $ 0.16 | $ 0.28 |
Severance Charges - Additional
Severance Charges - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Severance Charges [Abstract] | |||
Severance cost | $ 0 | $ 0 | $ 780,000 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segments | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Data and Analytics Services [Member] | |
Segment Reporting Information [Line Items] | |
Business acquisition date | Jul. 13, 2017 |
Business Segments and Geograp_4
Business Segments and Geographic Information - Summary of Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 44,645 | $ 44,292 | $ 44,894 | $ 43,333 | $ 40,468 | $ 39,228 | $ 35,086 | $ 33,100 | $ 177,164 | $ 147,882 | $ 132,008 |
Total gross margin % | 24.00% | 21.40% | 19.90% | ||||||||
Segment operating income | $ 11,625 | $ 4,081 | $ 4,507 | ||||||||
Amortization of acquired intangible assets | (2,727) | (1,710) | (813) | ||||||||
Revaluation of contingent consideration liability | 11,056 | ||||||||||
Goodwill impairment | (9,738) | ||||||||||
Acquisition-related transaction expenses | 140 | (2,019) | |||||||||
Interest expenses and other, net | (2,211) | (1,133) | (487) | ||||||||
Income before income taxes | 9,414 | 2,948 | $ 4,020 | ||||||||
Data and Analytics Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 23,803 | $ 9,185 | |||||||||
Total gross margin % | 44.00% | 44.80% | 0.00% | ||||||||
IT Staffing Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 153,361 | $ 138,697 | $ 132,008 | ||||||||
Total gross margin % | 20.90% | 19.80% | 19.90% | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | $ 12,894 | $ 7,810 | $ 5,320 | ||||||||
Operating Segments [Member] | Data and Analytics Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | 5,710 | 2,531 | |||||||||
Operating Segments [Member] | IT Staffing Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | $ 7,184 | $ 5,279 | $ 5,320 |
Business Segments and Geograp_5
Business Segments and Geographic Information - Summary of Assets by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 92,584 | $ 98,604 | $ 39,406 |
Depreciation & Amortization | 3,182 | 1,942 | 1,016 |
Capital Expenditures | 771 | 1,439 | 105 |
Data and Analytics Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 43,182 | 53,683 | |
Depreciation & Amortization | 2,051 | 925 | |
Capital Expenditures | 175 | 11 | |
IT Staffing Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 49,402 | 44,921 | 39,406 |
Depreciation & Amortization | 1,131 | 1,017 | 1,016 |
Capital Expenditures | $ 596 | $ 1,428 | $ 105 |
Business Segments and Geograp_6
Business Segments and Geographic Information - Summary of Revenue from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 44,645 | $ 44,292 | $ 44,894 | $ 43,333 | $ 40,468 | $ 39,228 | $ 35,086 | $ 33,100 | $ 177,164 | $ 147,882 | $ 132,008 |
Equipment, Enterprise Software and Leasehold Improvements, net | 2,208 | 1,899 | 2,208 | 1,899 | 558 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 172,610 | 145,513 | 132,008 | ||||||||
Equipment, Enterprise Software and Leasehold Improvements, net | 1,956 | 1,730 | 1,956 | 1,730 | 494 | ||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,125 | 1,729 | |||||||||
Equipment, Enterprise Software and Leasehold Improvements, net | 17 | 19 | 17 | 19 | |||||||
India and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,429 | 640 | |||||||||
Equipment, Enterprise Software and Leasehold Improvements, net | $ 235 | $ 150 | $ 235 | $ 150 | $ 64 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 398 | $ 388 | $ 313 |
Charged to expense (credited) | 10 | 10 | 75 |
Recoveries/(Write-offs) | 0 | 0 | 0 |
Balance at end of period | $ 408 | $ 398 | $ 388 |