Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | Performant Financial Corporation | |
Entity Central Index Key | 1,550,695 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 49,993,395 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 48,063 | $ 71,182 |
Restricted cash | 7,516 | 0 |
Trade accounts receivable, net of allowance for doubtful accounts of $386 and $386, respectively | 13,271 | 17,965 |
Deferred income taxes | 7,137 | 7,170 |
Prepaid expenses and other current assets | 12,774 | 12,933 |
Income tax receivable | 315 | 0 |
Total current assets | 89,076 | 109,250 |
Property, equipment, and leasehold improvements, net | 24,856 | 25,515 |
Identifiable intangible assets, net | 24,137 | 25,074 |
Goodwill | 82,522 | 82,522 |
Other assets | 169 | 179 |
Total assets | 220,760 | 242,540 |
Current liabilities: | ||
Current maturities of notes payable | 16,637 | 7,998 |
Accrued salaries and benefits | 6,322 | 4,761 |
Accounts payable | 527 | 929 |
Other current liabilities | 5,644 | 5,615 |
Income Tax Payable | 0 | 895 |
Estimated liability for appeals | 19,064 | 19,118 |
Net payable to client | 15,938 | 14,400 |
Total current liabilities | 64,132 | 53,716 |
Notes payable, net of current portion | 51,073 | 84,144 |
Deferred income taxes | 8,564 | 8,818 |
Other liabilities | 1,965 | 2,006 |
Total liabilities | $ 125,734 | $ 148,684 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value. Authorized, 500,000 shares at March 31, 2016 and December 31, 2015; issued and outstanding 49,990 and 49,479 shares at March 31, 2016 and December 31, 2015, respectively | $ 5 | $ 5 |
Additional paid-in capital | 62,898 | 61,808 |
Retained earnings | 32,123 | 32,043 |
Total stockholders’ equity | 95,026 | 93,856 |
Total liabilities and stockholders’ equity | $ 220,760 | $ 242,540 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 386 | $ 386 |
Common Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common Stock, issued shares (in shares) | 49,990,000 | 49,479,000 |
Common Stock, outstanding shares (in shares) | 49,990,000 | 49,479,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 38,279 | $ 38,559 |
Operating expenses: | ||
Salaries and benefits | 21,337 | 23,724 |
Other operating expenses | 14,357 | 19,195 |
Total operating expenses | 35,694 | 42,919 |
Income (loss) from operations | 2,585 | (4,360) |
Interest expense | (2,432) | (2,385) |
Income (loss) before provision for (benefit from) income taxes | 153 | (6,745) |
Provision for (benefit from) income taxes | 73 | (2,343) |
Net income (loss) | $ 80 | $ (4,402) |
Net income (loss) per share | ||
Basic (in dollars per share) | $ 0 | $ (0.09) |
Diluted (in dollars per share) | $ 0 | $ (0.09) |
Weighted average shares (in shares) | ||
Basic (in shares) | 49,643 | 49,357 |
Diluted (in shares) | 50,189 | 49,357 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 80 | $ (4,402) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 14 | 0 |
Comprehensive income (loss) | $ 94 | $ (4,402) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 80 | $ (4,402) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Loss on disposal of asset | 9 | 0 |
Depreciation and amortization | 3,390 | 3,542 |
Deferred income taxes | (570) | (70) |
Stock-based compensation | 1,204 | 1,003 |
Interest expense from debt issuance costs and amortization of discount note payable | 279 | 354 |
Write-off unamortized debt issuance costs | 468 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 4,694 | 438 |
Prepaid expenses and other current assets | 159 | (80) |
Income tax receivable | (315) | (2,331) |
Other assets | 10 | 135 |
Accrued salaries and benefits | 1,561 | 1,073 |
Accounts payable | (402) | (205) |
Other current liabilities | 171 | (1,444) |
Income taxes payable | (895) | 0 |
Estimated liability for appeals | (54) | 50 |
Net payable to client | 1,538 | 2,737 |
Other liabilities | (41) | 723 |
Net cash provided by operating activities | 11,286 | 1,523 |
Cash flows from investing activities: | ||
Purchase of property, equipment, and leasehold improvements | (1,803) | (1,777) |
Net cash used in investing activities | (1,803) | (1,777) |
Cash flows from financing activities: | ||
Repayment of notes payable | (24,769) | (2,455) |
Restricted cash for repayment of notes payable | (7,516) | 0 |
Debt issuance costs paid | (410) | 0 |
Taxes paid related to net share settlement of stock awards | (169) | 0 |
Proceeds from exercise of stock options | 310 | 22 |
Income tax benefit (shortfall) from employee stock options | 80 | (46) |
Payment of purchase obligation | (142) | (250) |
Net cash used in financing activities | (32,616) | (2,729) |
Effect of foreign currency exchange rate changes on cash | 14 | 0 |
Net decrease in cash and cash equivalents | (23,119) | (2,983) |
Cash and cash equivalents at beginning of period | 71,182 | 80,298 |
Cash and cash equivalents at end of period | 48,063 | 77,315 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 1,760 | 101 |
Cash paid for interest | $ 1,688 | $ 2,031 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Organization and Description of Business (a) Basis of Presentation and Organization The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary (consisting only of normal recurring adjustments) for a fair presentation of our and our subsidiaries’ financial position at March 31, 2016 , the results of our operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015 . Interim financial statements are prepared on a basis consistent with our annual consolidated financial statements. The interim financial statements included herein should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the years ended December 31, 2015, 2014, and 2013. The Company is a leading provider of technology-enabled recovery and analytics services in the United States. The Company's services help identify, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients in a broad range of markets. Company clients typically operate in complex and regulated environments and outsource their recovery needs in order to reduce losses on billions of dollars of defaulted student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. The Company generally provides services on an outsourced basis, where we handle many or all aspects of the clients’ recovery processes. The Company's consolidated financial statements include the operations of Performant Financial Corporation (PFC), its wholly owned subsidiary Performant Business Services, Inc., and its wholly owned subsidiaries Performant Recovery, Inc. (Recovery) and Performant Technologies, Inc. PFC is a Delaware corporation headquartered in California and was formed in 2003. Performant Business Services, Inc. is a Nevada corporation founded in 1997. Recovery is a California corporation founded in 1976. Performant Technologies, Inc. is a California corporation that was formed in 2004. All significant intercompany balances and transactions have been eliminated in consolidation. The Company is managed and operated as one business, with a single management team that reports to the Chief Executive Officer. The preparation of the consolidated financial statements in conformity with U.S. GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, goodwill, estimated liability for appeals, accrued expenses, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Our actual results could differ from those estimates. (b) Revenues, Accounts Receivable, and Estimated Liability for Appeals Revenue is recognized upon the collection of defaulted loan and debt payments. Loan rehabilitation revenue is recognized when the rehabilitated loans are sold (funded) by clients. Incentive revenue is recognized upon receipt of official notification of incentive award from customers. Under the Company’s Medicare Recovery Audit Contractor, or RAC, contract with Centers for Medicare and Medicaid Services, or CMS, the Company recognizes revenues when the healthcare provider has paid CMS for a given claim or has agreed to an offset against other claims by the provider. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS. The Company accrues an estimated liability for appeals at the time revenue is recognized based on the Company's estimate of the amount of revenue probable of being refunded to CMS following successful appeal. In addition, if the Company's estimate of the liability for appeals with respect to revenues recognized during a prior period changes, the Company increases or decreases current period accruals based on such change in estimated liability. At March 31, 2016 a total of $18.9 million was presented as an allowance against revenue, representing the Company’s estimate of claims that may be overturned. Of this, an immaterial amount was related to accounts receivable and $18.9 million was related to commissions which had already been received. The zero allowance against accounts receivable at March 31, 2016 is due to the fact that the receivable from CMS is netted against an offsetting payable for overturned audits, and at March 31, 2016 , the amount of the payable exceeded the amount of the receivable as discussed in note 1(c). In addition to the $18.9 million related to the RAC contract with CMS, the Company has accrued $0.2 million of additional estimated liability for appeals related to other healthcare contracts. The total accrued liability for appeals of $19.1 million has been presented in the caption estimated liability for appeals at March 31, 2016 . At December 31, 2015, the total appeals-related liability was $19.1 million . The $19.1 million balance at March 31, 2016 and December 31, 2015, represent the Company’s best estimate of the probable amount of losses related to appeals of claims for which commissions were previously collected. In addition to the $19.1 million amount accrued at March 31, 2016 , the Company estimates that it is reasonably possible that it could be required to pay an additional amount up to approximately $5.4 million as a result of potentially successful appeals. To the extent that required payments by the Company exceed the amount accrued, revenues in the applicable period would be reduced by the amount of the excess. (c) Net Payable to Client The Company nets outstanding accounts receivable invoices from an audit and recovery contract against payables for overturned audits. The overturned audits are netted against current fees due on the invoice to the client when they are processed by the client’s system. The “Net payable to client” balance of $15.9 million represents the excess of payables for overturned audits at March 31, 2016 . At December 31, 2015, the net of the "Net payable to client" balance of $14.4 million was comprised of payables of $15.4 million for overturned audits offset by outstanding receivables of $1.0 million . The Company expects that the net payable-to-client balance will be paid to the client within the next twelve months. (d) Prepaid Expenses and Other Current Assets At March 31, 2016 , prepaid expenses and other current assets includes $5.7 million of amounts estimated to become due from subcontractors. The Company employs subcontractors to audit claims as part of an audit & recovery contract, and to the extent that audits by these subcontractors are overturned on appeal, the fees associated with such claims are contractually refundable to the Company. At March 31, 2016 , the receivable associated with estimated future overturns of subcontractor audits was $5.7 million . In addition, at March 31, 2016 , prepaid expenses and other current assets includes a net receivable of $3.8 million for subcontractor fees for already overturned audits refundable to the Company once the Company refunds its fees to the client as prime contractor. By comparison, at December 31, 2015, prepaid expenses and other current assets included $5.7 million of estimated future overturns of subcontractor audits, as well as a net receivable of $3.8 million for subcontractor fees for already overturned audits refundable to the Company once the Company refunds its fees to the client as prime contractor. (e) Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets or intangibles may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was no impairment expense for long-lived assets for the three months ended March 31, 2016. For the three months ended March 31, 2015, an impairment expense of $0.2 million was recognized to account for the loss of a client and it has been included in other operating expenses in the consolidated statements of operations. (f) Restricted Cash At March 31, 2016, restricted cash included in current assets on our consolidated balance sheet was $7.5 million . As discussed in Note 3, in February 2016 the Company deposited $7.5 million into a segregated deposit account in connection with the Fourth Amendment to our credit agreement. The cash in this segregated deposit account is restricted because it is subject to the exclusive control of the administrative agent as set forth in our credit agreement. (g) Recent Accounting Pronouncements Accounting Standards Adopted Effective in the first quarter of 2016, we adopted FASB's ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” in conjunction with their initiative to reduce complexity in accounting standards. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with presentation of a debt discount. The standard requires retrospective application and represents a change in accounting principle. Although the new guidance had no impact on the Company’s results of operations, the debt issuance costs presented as assets within the Company’s consolidated balance sheet which amounted to $1.9 million and $2.1 million , as of March 31, 2016 and December 31, 2015, respectively, have been reclassified as a reduction of the related debt liability. Effective in the first quarter of 2016, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The adoption of ASU 2015-16 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards In May 2014, FASB issued an ASU that amends the FASB ASC by creating a new Topic 606, Revenue from Contracts with Customers. The new guidance will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance on revenue recognition throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. This amendment is to be either retrospectively adopted to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. On July 9, 2015, the FASB decided to defer the effective date by one year, to annual reporting periods beginning on or after December 15, 2017, including interim periods within that reporting period. The FASB also voted to permit early adoption of the guidance but no earlier than the original effective date. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements - Going Concern”, which addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known, and reasonably knowable, at the date that the financial statements are issued. This new guidance will be effective for the first interim period within annual reporting periods beginning after December 31, 2016 with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes” which simplifies the current presentation of separately classifying deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet by requiring companies to present them as noncurrent. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual reporting periods with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. This new guidance is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on the Company’s consolidated financial statements. |
Property, Equipment, and Leaseh
Property, Equipment, and Leasehold Improvements | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment, and Leasehold Improvements | Property, Equipment, and Leasehold Improvements Property, equipment, and leasehold improvements consist of the following at March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, Land $ 1,122 $ 1,122 Building and leasehold improvements 6,093 6,053 Furniture and equipment 5,407 5,390 Computer hardware and software 68,737 67,353 81,359 79,918 Less accumulated depreciation and amortization (56,503 ) (54,403 ) Property, equipment and leasehold improvements, net $ 24,856 $ 25,515 Depreciation expense of property, equipment and leasehold improvements was $2.5 million and $2.4 million for the three months ended March 31, 2016 and 2015 , respectively. |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement On February 19, 2016, the Company entered into Amendment No. 4 to its Credit Agreement (Fourth Amendment) in which certain financial covenants were amended. Under the Fourth Amendment, the Company’s financial covenants were modified as follows: • The annual capital expenditure limitation of $12.5 million , which was in effect for the year ending December 31, 2016, has been revised under the Fourth Amendment to be $8 million for the years ending December 31, 2016 and December 31, 2017. • The total debt to EBITDA ratio of 3.25 to1.0, which was in effect for the computation periods ending as of March 31, 2017 and June 30, 2017, has been revised under the Fourth Amendment to be 4.75 to 1.0 for those periods. • The interest coverage ratio of 2.50 to 1.0, which was in effect for the computation period ending as of December 31, 2016, has been revised under the Fourth Amendment to be 2.0 to 1.0 for the computation period ending as of December 31, 2016 and 1.75 to 1.0 for the computation periods ending as March 31, 2017 and June 30, 2017. • The fixed charge coverage ratio of 1.20 to1.0, which was in effect for the quarterly computation periods under the Credit Agreement ending as of March 31, 2017 through December 31, 2017, has been revised under the Fourth Amendment to apply only to the computation periods ending as September 30, 2017 and December 31, 2017. • The required minimum adjusted cash balance of $30.0 million , which was in effect from March 31, 2016 through December 31, 2016, has been revised under the Fourth Amendment to be $10.0 million from March 31, 2016 through September 30, 2016. • The minimum trailing twelve month EBITDA of $20.0 million , which was in effect from March 31, 2016 through December 31, 2016, has been revised under the Fourth Amendment by shortening such period to extend until June 30, 2016. Interest charged under the Credit Agreement as revised by the Fourth Amendment with respect to the Term A loan revolving loan advances is now charged either at Prime + 5.75% or LIBOR + 6.75% , and interest with respect to the Term B loan is now charged either at Prime + 6.25% or LIBOR + 7.25% . In connection with the Fourth Amendment, the Company voluntarily prepaid $22.5 million under the Credit Agreement, which was applied ratably to the Term A loan and the Term B loan. In addition, the Company deposited $7.5 million into a deposit account which is subject to the exclusive control of the Agent. Pursuant to the Fourth Amendment, these funds will be remitted to the Agent for application to the term loans or other obligations, as applicable, under the Credit Agreement on the earlier to occur of (i) September 30, 2016 (or such later date not more than thirty (30) days thereafter as may be agreed by Agent in its sole discretion) and (ii) the occurrence and continuation of an event of default; however, all or a portion of these funds may also be returned the Company if the Agent and the requisite lenders under the Credit Agreement elect otherwise in their sole discretion. Scheduled payments under the Agreement for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Amount Remainder of 2016 $ 14,307 2017 3,959 2018 51,223 2019 — 2020 — Thereafter — Total $ 69,489 Due to delays in the award of the new contracts by CMS and the Department of Education, significant limitations on our audit and recovery activity during the CMS contract transition period, suspension of student loan placements to us from the Department of Education during the contract transition period and recovery fee reductions in the student lending market, we have been actively restructuring both our variable and fixed expenses consistent with our reduced operations and in order to maintain compliance with our debt covenants under our credit agreement. Our current financial projections show that we expect to be able to maintain compliance with these covenants through the second quarter of 2017. However, the factors noted above have had and, until resolved, will continue to have a significant negative effect on our revenues and earnings and our ability to continue to comply with these covenants. Accordingly, we expect to seek further modifications to the covenants from our lenders or refinance our indebtedness. Our inability to maintain long-term compliance with our debt covenants, or to refinance or restructure the terms of our indebtedness on commercially reasonable terms or at all, would have an adverse effect, which could be material on our business, financial condition and results of operations, as well as our ability to satisfy our debt obligations. In addition, due to the delays in the award of the new contracts from the Department of Education and CMS, we implemented cost and expense reductions during 2015 and the first quarter of 2016 that included a significant reduction in personnel. To the extent we are able to secure new contracts with the Department of Education or CMS, we will incur significant expenses to hire additional personnel that will be required to provide services under any such new contract that may require us to obtain additional financing. There can be no assurance that we will be able to obtain such financing on favorable terms, or at all. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have entered into various non-cancelable operating lease agreements for certain of our office facilities and equipment with original lease periods expiring between 2016 and 2021 . Certain of these arrangements have free rent periods and /or escalating rent payment provisions, and we recognize rent expense under such arrangements on a straight-line basis. Future minimum rental commitments under non-cancelable leases as of March 31, 2016 are as follows (in thousands): Year Ending December 31, Amount Remainder of 2016 $ 1,650 2017 1,764 2018 942 2019 872 2020 842 Thereafter 310 Total $ 6,380 Operating lease expense was $ 0.7 million and $0.8 million for the three months ended March 31, 2016 and 2015 , respectively. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation (a) Stock Options Total stock-based compensation expense charged as salaries and benefits expense in the consolidated statements of operations was $1.2 million and $1.0 million for the three months ended March 31, 2016 and 2015 , respectively. The following table shows stock option activity for the three months ended March 31, 2016 : Outstanding Options Weighted average exercise price per share Weighted average remaining contractual life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 4,117,123 $ 6.92 5.64 $ 1,211 Granted 115,000 1.74 Forfeited (110,371 ) 7.36 Exercised (350,767 ) 0.88 Outstanding at March 31, 2016 3,770,985 $ 7.31 5.49 $ 814 Vested, exercisable, expected to vest (1) at March 31, 2016 3,720,473 $ 7.31 5.46 $ 814 Exercisable at March 31, 2016 2,724,781 $ 6.97 4.68 $ 814 (1) Options expected to vest reflect an estimated forfeiture rate. The Company recognizes share-based compensation costs as expense on a straight-line basis over the option vesting period, which generally is four to five years . (b) Restricted Stock Units and Performance Stock Units The following table summarizes restricted stock unit and performance stock unit activity for the three months ended March 31, 2016 : Number of Awards Weighted average grant date fair value per share Outstanding at December 31, 2015 1,229,274 $ 4.67 Granted 1,103,500 1.74 Forfeited (55,050 ) 5.64 Vested and converted to shares (261,374 ) 3.47 Outstanding at March 31, 2016 2,016,350 $ 3.20 Expected to vest at March 31, 2016 1,915,581 $ 3.20 Restricted stock units and performance stock units granted under the Performant Financial Corporation 2012 Stock Incentive Plan generally vest over periods ranging from one to four years . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax rate changed to 47.7% for the three months ended March 31, 2016 from 34.7% for the three months ended March 31, 2015 . The increase in the effective tax rate is primarily due to income from operations generated in the three months ended March 31, 2016 compared to the loss from operations incurred for the three months ended March 31, 2015 and the resulting impact of the discrete items on the effective tax rate. We file income tax returns with the U.S. federal government and various state jurisdictions. We operate in a number of state and local jurisdictions, most of which have never audited our records. Accordingly, we are subject to state and local income tax examinations based upon the various statutes of limitations in each jurisdiction. For tax years before 2011, the Company is no longer subject to California, Texas and certain state tax examinations. For tax years before 2012, the Company is no longer subject to Federal and certain other state tax examinations. We are currently being examined by the Franchise Tax Board of California for tax years 2011 and 2012, and the State of New York for tax years 2011, 2012, and 2013. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share For the three months ended March 31, 2016 and 2015 , basic income per share is calculated by dividing net income by the sum of the weighted average number of shares of Common Stock outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of shares of Common Stock and dilutive common share equivalents outstanding during the period. Common share equivalents consist of stock options, restricted stock units, and performance stock units. When there is a loss in the period, dilutive common share equivalents are excluded from the calculation of diluted earnings per share, as their effect would be anti-dilutive. For example, for the three months ended March 31, 2015, dilutive common share equivalents have been excluded, and diluted weighted average shares outstanding are the same as basic average shares outstanding. When there is net income in the period, the Company excludes stock options, restricted stock units, and performance stock units from the calculation of diluted earnings per share when the combined exercise price, unamortized fair value and excess tax benefits of the options exceed the average market price of the Company's common stock because their effect would be anti-dilutive. For the three months ended March 31, 2016, the Company excluded 4,438,043 options from the calculation of diluted earnings per share because their effect would be anti-dilutive. The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands): Three Months Ended 2016 2015 Weighted average shares outstanding – basic 49,643 49,357 Dilutive effect of stock options 546 — Weighted average shares outstanding – diluted 50,189 49,357 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date these consolidated financial statements were issued and there are no other events that have occurred that would require adjustments or disclosures to our consolidated financial statements. |
Organization and Description 15
Organization and Description of Business (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Organization | Basis of Presentation and Organization The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary (consisting only of normal recurring adjustments) for a fair presentation of our and our subsidiaries’ financial position at March 31, 2016 , the results of our operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015 . Interim financial statements are prepared on a basis consistent with our annual consolidated financial statements. The interim financial statements included herein should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the years ended December 31, 2015, 2014, and 2013. The Company is a leading provider of technology-enabled recovery and analytics services in the United States. The Company's services help identify, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients in a broad range of markets. Company clients typically operate in complex and regulated environments and outsource their recovery needs in order to reduce losses on billions of dollars of defaulted student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. The Company generally provides services on an outsourced basis, where we handle many or all aspects of the clients’ recovery processes. The Company's consolidated financial statements include the operations of Performant Financial Corporation (PFC), its wholly owned subsidiary Performant Business Services, Inc., and its wholly owned subsidiaries Performant Recovery, Inc. (Recovery) and Performant Technologies, Inc. PFC is a Delaware corporation headquartered in California and was formed in 2003. Performant Business Services, Inc. is a Nevada corporation founded in 1997. Recovery is a California corporation founded in 1976. Performant Technologies, Inc. is a California corporation that was formed in 2004. All significant intercompany balances and transactions have been eliminated in consolidation. The Company is managed and operated as one business, with a single management team that reports to the Chief Executive Officer. The preparation of the consolidated financial statements in conformity with U.S. GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, goodwill, estimated liability for appeals, accrued expenses, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Our actual results could differ from those estimates. |
Revenues, Accounts Receivable, and Estimated Liability for Appeals | Revenues, Accounts Receivable, and Estimated Liability for Appeals Revenue is recognized upon the collection of defaulted loan and debt payments. Loan rehabilitation revenue is recognized when the rehabilitated loans are sold (funded) by clients. Incentive revenue is recognized upon receipt of official notification of incentive award from customers. Under the Company’s Medicare Recovery Audit Contractor, or RAC, contract with Centers for Medicare and Medicaid Services, or CMS, the Company recognizes revenues when the healthcare provider has paid CMS for a given claim or has agreed to an offset against other claims by the provider. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS. The Company accrues an estimated liability for appeals at the time revenue is recognized based on the Company's estimate of the amount of revenue probable of being refunded to CMS following successful appeal. In addition, if the Company's estimate of the liability for appeals with respect to revenues recognized during a prior period changes, the Company increases or decreases current period accruals based on such change in estimated liability. At March 31, 2016 a total of $18.9 million was presented as an allowance against revenue, representing the Company’s estimate of claims that may be overturned. Of this, an immaterial amount was related to accounts receivable and $18.9 million was related to commissions which had already been received. The zero allowance against accounts receivable at March 31, 2016 is due to the fact that the receivable from CMS is netted against an offsetting payable for overturned audits, and at March 31, 2016 , the amount of the payable exceeded the amount of the receivable as discussed in note 1(c). In addition to the $18.9 million related to the RAC contract with CMS, the Company has accrued $0.2 million of additional estimated liability for appeals related to other healthcare contracts. The total accrued liability for appeals of $19.1 million has been presented in the caption estimated liability for appeals at March 31, 2016 . At December 31, 2015, the total appeals-related liability was $19.1 million . The $19.1 million balance at March 31, 2016 and December 31, 2015, represent the Company’s best estimate of the probable amount of losses related to appeals of claims for which commissions were previously collected. In addition to the $19.1 million amount accrued at March 31, 2016 , the Company estimates that it is reasonably possible that it could be required to pay an additional amount up to approximately $5.4 million as a result of potentially successful appeals. To the extent that required payments by the Company exceed the amount accrued, revenues in the applicable period would be reduced by the amount of the excess. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets or intangibles may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was no impairment expense for long-lived assets for the three months ended March 31, 2016. For the three months ended March 31, 2015, an impairment expense of $0.2 million was recognized to account for the loss of a client and it has been included in other operating expenses in the consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted Effective in the first quarter of 2016, we adopted FASB's ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” in conjunction with their initiative to reduce complexity in accounting standards. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with presentation of a debt discount. The standard requires retrospective application and represents a change in accounting principle. Although the new guidance had no impact on the Company’s results of operations, the debt issuance costs presented as assets within the Company’s consolidated balance sheet which amounted to $1.9 million and $2.1 million , as of March 31, 2016 and December 31, 2015, respectively, have been reclassified as a reduction of the related debt liability. Effective in the first quarter of 2016, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” that eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The adoption of ASU 2015-16 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards In May 2014, FASB issued an ASU that amends the FASB ASC by creating a new Topic 606, Revenue from Contracts with Customers. The new guidance will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance on revenue recognition throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. This amendment is to be either retrospectively adopted to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. On July 9, 2015, the FASB decided to defer the effective date by one year, to annual reporting periods beginning on or after December 15, 2017, including interim periods within that reporting period. The FASB also voted to permit early adoption of the guidance but no earlier than the original effective date. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements - Going Concern”, which addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known, and reasonably knowable, at the date that the financial statements are issued. This new guidance will be effective for the first interim period within annual reporting periods beginning after December 31, 2016 with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes” which simplifies the current presentation of separately classifying deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet by requiring companies to present them as noncurrent. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual reporting periods with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. This new guidance is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. We have not adopted this guidance early and are currently evaluating the effect on the Company’s consolidated financial statements. |
Property, Equipment, and Leas16
Property, Equipment, and Leasehold Improvements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment, and Leasehold Improvements | Property, equipment, and leasehold improvements consist of the following at March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, Land $ 1,122 $ 1,122 Building and leasehold improvements 6,093 6,053 Furniture and equipment 5,407 5,390 Computer hardware and software 68,737 67,353 81,359 79,918 Less accumulated depreciation and amortization (56,503 ) (54,403 ) Property, equipment and leasehold improvements, net $ 24,856 $ 25,515 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Payments Under Credit Agreement | Scheduled payments under the Agreement for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Amount Remainder of 2016 $ 14,307 2017 3,959 2018 51,223 2019 — 2020 — Thereafter — Total $ 69,489 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Non-Cancelable Leases | Future minimum rental commitments under non-cancelable leases as of March 31, 2016 are as follows (in thousands): Year Ending December 31, Amount Remainder of 2016 $ 1,650 2017 1,764 2018 942 2019 872 2020 842 Thereafter 310 Total $ 6,380 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | The following table shows stock option activity for the three months ended March 31, 2016 : Outstanding Options Weighted average exercise price per share Weighted average remaining contractual life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 4,117,123 $ 6.92 5.64 $ 1,211 Granted 115,000 1.74 Forfeited (110,371 ) 7.36 Exercised (350,767 ) 0.88 Outstanding at March 31, 2016 3,770,985 $ 7.31 5.49 $ 814 Vested, exercisable, expected to vest (1) at March 31, 2016 3,720,473 $ 7.31 5.46 $ 814 Exercisable at March 31, 2016 2,724,781 $ 6.97 4.68 $ 814 (1) Options expected to vest reflect an estimated forfeiture rate. |
Restricted Stock Activity | The following table summarizes restricted stock unit and performance stock unit activity for the three months ended March 31, 2016 : Number of Awards Weighted average grant date fair value per share Outstanding at December 31, 2015 1,229,274 $ 4.67 Granted 1,103,500 1.74 Forfeited (55,050 ) 5.64 Vested and converted to shares (261,374 ) 3.47 Outstanding at March 31, 2016 2,016,350 $ 3.20 Expected to vest at March 31, 2016 1,915,581 $ 3.20 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Weighted Average Shares | The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands): Three Months Ended 2016 2015 Weighted average shares outstanding – basic 49,643 49,357 Dilutive effect of stock options 546 — Weighted average shares outstanding – diluted 50,189 49,357 |
Organization and Description 21
Organization and Description of Business - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2016USD ($) | Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Allowance against revenue | $ 18,900,000 | |||
Estimated allowance for appeals | 0 | |||
Estimated allowance for appeals, healthcare contracts | $ 200,000 | |||
Estimated liability for appeals | 19,064,000 | 19,118,000 | ||
Probable amount of losses | 19,100,000 | |||
Estimated additional liability for appeals | 5,400,000 | |||
Customer refund liability, current | 15,938,000 | 14,400,000 | ||
Invoiced receivable | 1,000,000 | |||
Customer refund liability, current, gross | 15,400,000 | |||
Subcontractor receivables | 5,700,000 | 5,700,000 | ||
Estimated provider-favor receivables | 5,700,000 | |||
Subcontractor fees for overturned audits | 3,800,000 | 3,800,000 | ||
Impairment | 0 | $ 200,000 | ||
Restricted cash | 7,516,000 | 0 | ||
Restricted cash for repayment of notes payable | $ 7,500,000 | 7,516,000 | $ 0 | |
Assets | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred Finance Costs, Net | (1,900,000) | (2,100,000) | ||
Long-term Debt | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred Finance Costs, Net | $ 1,900,000 | $ 2,100,000 |
Property, Equipment, and Leas22
Property, Equipment, and Leasehold Improvements (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold equipment, gross | $ 81,359 | $ 79,918 |
Less accumulated depreciation and amortization | (56,503) | (54,403) |
Property, equipment and leasehold improvements, net | 24,856 | 25,515 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold equipment, gross | 1,122 | 1,122 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold equipment, gross | 6,093 | 6,053 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold equipment, gross | 5,407 | 5,390 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold equipment, gross | $ 68,737 | $ 67,353 |
Property, Equipment, and Leas23
Property, Equipment, and Leasehold Improvements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense of property, equipment and leasehold improvements | $ 2.5 | $ 2.4 |
Credit Agreement (Details)
Credit Agreement (Details) | Feb. 19, 2016USD ($) | Nov. 04, 2014 | Jun. 30, 2017 | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Second Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Interest coverage ratio | 1.20 | ||||||
Amendment Number Four to Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Repayments | $ 22,500,000 | ||||||
Collateral | $ 7,500,000 | ||||||
Repayment period | 30 days | ||||||
Scenario, Forecast | Second Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Capital expenditures | $ 12,500,000 | ||||||
Total debt to EBITDA ratio | 3.25 | ||||||
Interest coverage ratio | 2.50 | ||||||
Minimum cash balances | $ 30,000,000 | $ 30,000,000 | 30,000,000 | ||||
EBITDA | $ 20,000,000 | ||||||
Scenario, Forecast | Amendment Number Four to Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Capital expenditures | $ 8,000,000 | ||||||
Total debt to EBITDA ratio | 4.75 | ||||||
Interest coverage ratio | 1.75 | 2 | |||||
Minimum cash balances | $ 10,000,000 | ||||||
Maximum | Term Loan A | Second Amendment | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percent) | 5.75% | ||||||
Maximum | Term Loan A | Second Amendment | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percent) | 6.75% | ||||||
Maximum | Term B Loan | Second Amendment | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percent) | 6.25% | ||||||
Maximum | Term B Loan | Second Amendment | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percent) | 7.25% |
Credit Agreement Payments Under
Credit Agreement Payments Under Credit Agreement (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2016 | $ 14,307 |
2,017 | 3,959 |
2,018 | 51,223 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total | $ 69,489 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Rental Commitments Under Non-Cancelable Leases (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 1,650 |
2,017 | 1,764 |
2,018 | 942 |
2,019 | 872 |
2,020 | 842 |
Thereafter | 310 |
Total | $ 6,380 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitment And Contingencies [Line Items] | ||
Operating lease expense | $ 0.7 | $ 0.8 |
Minimum | ||
Commitment And Contingencies [Line Items] | ||
Non-cancelable operating lease agreements expiration date | 2,016 | |
Maximum | ||
Commitment And Contingencies [Line Items] | ||
Non-cancelable operating lease agreements expiration date | 2,021 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1.2 | $ 1 |
Minimum | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vesting period (in years) | 4 years | |
Minimum | Restricted Stock and Performance Stock Units | 2012 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vesting period (in years) | 1 year | |
Maximum | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vesting period (in years) | 5 years | |
Maximum | Restricted Stock and Performance Stock Units | 2012 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vesting period (in years) | 4 years |
Stock-based Compensation Stock
Stock-based Compensation Stock Option Activity (Detail) - Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Outstanding Options (in shares) | ||
Balance at beginning of period (in shares) | 4,117,123 | |
Granted (in shares) | 115,000 | |
Forfeited (in shares) | (110,371) | |
Exercised (in shares) | (350,767) | |
Balance at end of period (in shares) | 3,770,985 | 4,117,123 |
Vested, exercisable, and expected to vest (in shares) | 3,720,473 | |
Exercisable (in shares) | 2,724,781 | |
Weighted average exercise price per share (in dollars per share) | ||
Balance at beginning of period (in dollars per share) | $ 6.92 | |
Granted (in dollars per share) | 1.74 | |
Forfeited (in dollars per share) | 7.36 | |
Exercised (in dollars per share) | 0.88 | |
Balance at end of period (in dollars per share) | 7.31 | $ 6.92 |
Vested or expected to vest (in dollars per share) | 7.31 | |
Exercisable (in dollars per share) | $ 6.97 | |
Weighted average remaining contractual life (in years) | ||
Balance at beginning of period (in dollars per share) | 5 years 5 months 27 days | 5 years 7 months 21 days |
Balance at end of period (in dollars per share) | 5 years 5 months 27 days | 5 years 7 months 21 days |
Vested, exercisable, and expected to vest (in dollars per share) | 5 years 5 months 16 days | |
Exercisable (in dollars per share) | 4 years 8 months 5 days | |
Aggregate Intrinsic Value | ||
Balance at beginning of period | $ 1,211 | |
Balance at end of period | 814 | $ 1,211 |
Vested, exercisable, and expected to vest | 814 | |
Exercisable | $ 814 |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock and Performance Stock Units Activity (Details) - Restricted Stock and Performance Stock Units - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | |
Number of Awards (in shares) | ||
Outstanding at beginning of period (in shares) | 1,229,274 | |
Granted (in shares) | 1,103,500 | |
Forfeited (in shares) | (55,050) | |
Vested and converted to shares (in shares) | (261,374) | |
Outstanding at end of period (in shares) | 2,016,350 | |
Expected to vest (in shares) | 1,915,581 | |
Weighted average grant date fair value per share (in dollars per share) | ||
Outstanding beginning of period (in dollars per share) | $ 4.67 | |
Granted (in dollars per share) | 1.74 | |
Forfeited (in dollars per share) | 5.64 | |
Vested and converted to shares (in dollars per share) | 3.47 | |
Outstanding end of period (in dollars per share) | 3.20 | |
Expected to vest end of period (in dollars per share) | $ 4.67 | $ 3.20 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 47.70% | 34.70% |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded (in shares) | 4,438,043 |
Earnings per Share Reconciliati
Earnings per Share Reconciliation of Basic to Diluted Weighted Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding – basic (in shares) | 49,643 | 49,357 |
Dilutive effect of stock options (in shares) | 546 | 0 |
Weighted average shares outstanding – diluted (in shares) | 50,189 | 49,357 |