Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Discontinued Operations Information

Discontinued operations information for the years ended December 31, 2018, 2017 and 2016 (in thousands) is as follows: 

Results of Discontinued Operations (in thousands)	Years Ended December 31,
	2018			2017			2016
Revenue, net of refund liability	$	959		$	—		$	(14	)
Cost of sales (adjustments)	(300		)	1,350			1,112
Selling, general and administrative expense	16			14			184
Depreciation of property, equipment and software assets	1			8			14
Pretax income (loss) from discontinued operations before income taxes	1,242			(1,372		)	(1,324		)
Income tax expense	—			—			—
Net income (loss) from discontinued operations	$	1,242		$	(1,372	)	$	(1,324	)

The following table presents the discontinued operations of the HCRA services business in the Consolidated Statements of Cash Flows, for the years ended December 31, 2018, 2017 and 2016 (in thousands):

	Years Ended December 31,
	2018			2017			2016
Net cash used in operating activities	$	(1,484	)	$	(1,364	)	$	(1,309	)
Net cash used in investing activities	—			—			—
Net cash provided by financing activities	—			—			—
Increase (decrease) in cash and cash equivalents	$	(1,484	)	$	(1,364	)	$	(1,309	)

Schedule of Segment Information

Segment information for the years ended December 31, 2018, 2017 and 2016 (in thousands) is as follows:

	Recovery Audit Services – Americas			Recovery Audit Services – Europe/Asia- Pacific		Adjacent Services			Corporate Support			Total
2018
Revenue, net of refund liabilities	$	115,920		$	49,526	$	6,330		$	—		$	171,776
Net income from continuing operations												$	3,351
Income tax expense												1,321
Interest expense, net												1,663
EBIT	$	26,602		$	12,413	$	(5,231	)	$	(27,449	)	6,335
Depreciation of property, equipment and software assets	5,545			683		1,142			—			7,370
Amortization of intangible assets	1,664			172		1,559			—			3,395
EBITDA	33,811			13,268		(2,530		)	(27,449		)	17,100
Foreign currency transaction losses (gains) on short-term intercompany balances	367			1,044		14			(423		)	1,002
Acquisition-related adjustments (income) loss	—			—		—			(1,628		)	(1,628		)
Transformation and severance expenses	944			1,194		66			918			3,122
Other (income) loss	(4		)	8		—			17			21
Stock-based compensation	—			—		—			5,056			5,056
Adjusted EBITDA	$	35,118		$	15,514	$	(2,450	)	$	(23,509	)	$	24,673
Capital expenditures	$	2,050		$	1,200	$	257		$	6,891		$	10,398
Allocated assets	$	71,211		$	26,147	$	7,294		$	—		$	104,652
Unallocated assets:
Cash and cash equivalents	—			—		—			13,973			13,973
Restricted cash	—			—		—			46			46
Deferred income taxes	—			—		—			3,561			3,561
Prepaid expenses and other assets	—			—		—			910			910
Discontinued operations	—			—		—			1,687			1,687
Total assets	$	71,211		$	26,147	$	7,294		$	20,177		$	124,829

	Recovery Audit Services – Americas			Recovery Audit Services – Europe/Asia- Pacific			Adjacent Services			Corporate Support			Total
2017
Revenue, net of refund liabilities	$	113,122		$	44,372		$	4,126		$	—		$	161,620
Net income from continuing operations													$	4,556
Income tax expense													2,962
Interest expense, net													1,539
EBIT	$	29,163		$	11,700		$	(7,942	)	$	(23,864	)	9,057
Depreciation of property, equipment and software assets	3,165			599			805			—			4,569
Amortization of intangible assets	1,919			142			1,573			—			3,634
EBITDA	34,247			12,441			(5,564		)	(23,864		)	17,260
Foreign currency transaction (gains) losses on short-term intercompany balances	(249		)	(1,769		)	(9		)	(163		)	(2,190		)
Acquisition-related adjustments (income) loss	—			—			—			(2,283		)	(2,283		)
Transformation and severance expenses	313			655			320			378			1,666
Other (income) loss	751			184			(195		)	(900		)	(160		)
Stock-based compensation	—			—			—			7,052			7,052
Adjusted EBITDA	$	35,062		$	11,511		$	(5,448	)	$	(19,780	)	$	21,345
Capital expenditures	$	2,389		$	2,383		$	1,335		$	3,248		$	9,355
Allocated assets	$	65,397		$	22,474		$	9,486		$	—		$	97,357
Unallocated assets:
Cash and cash equivalents	—			—			—			18,823			18,823
Restricted cash	—			—			—			51			51
Deferred loan costs	—			—			—			—			—
Deferred income taxes	—			—			—			1,538			1,538
Prepaid expenses and other assets	$	—		$	—		$	—		910			910
Discontinued operations	$	—		$	—		$	—		$	1,539		$	1,539
Total assets	$	65,397		$	22,474		$	9,486		$	22,861		$	120,218

	Recovery Audit Services – Americas		Recovery Audit Services – Europe/Asia- Pacific		Adjacent Services			Corporate Support			Total
2016
Revenue, net of refund liabilities	$	99,861	$	37,335	$	3,648		$	—		$	140,844
Net income from continuing operations											$	2,229
Income tax expense											1,242
Interest income, net											(153		)
EBIT	$	25,476	$	6,455	$	(4,617	)	$	(23,996	)	3,318
Depreciation of property, equipment and software assets	3,750		529		754			—			5,033
Amortization of intangible assets	1,477		—		355			—			1,832
EBITDA	30,703		6,984		(3,508		)	(23,996		)	10,183
Foreign currency transaction losses (gains) on short-term intercompany balances	31		107		17			(71		)	84
Transformation and severance expenses	517		312		258			242			1,329
Other income	—		—		(121		)	—			(121		)
Stock-based compensation	—		—		—			5,123			5,123
Adjusted EBITDA	$	31,251	$	7,403	$	(3,354	)	$	(18,702	)	$	16,598
Capital expenditures	$	4,393	$	600	$	894		$	—		$	5,887
Allocated assets	$	47,690	$	14,813	$	10,532		$	—		$	73,035
Unallocated assets:
Cash and cash equivalents	—		—		—			15,723			15,723
Restricted cash	—		—		—			47			47
Deferred income taxes	—		—		—			2,269			2,269
Prepaid expenses and other assets	—		—		—			800			800
Discontinued operations								1,600			1,600
Total assets	$	47,690	$	14,813	$	10,532		$	20,439		$	93,474

The following table presents revenue by country based on the location of clients served (in thousands):

	Years Ended December 31,
	2018		2017		2016
United States	$	100,458	$	93,447	$	80,857
United Kingdom	27,774		23,408		17,501
Canada	14,700		14,375		14,531
Australia	8,397		8,732		7,354
France	6,721		5,987		6,934
Mexico	3,793		5,385		4,900
Brazil	1,799		2,053		1,169
Spain	1,443		1,127		964
Hong Kong	1,219		889		824
Thailand	1,094		699		654
Ireland	741		929		337
Colombia	465		709		583
New Zealand	338		899		979
Other	2,834		2,981		3,257
	$	171,776	$	161,620	$	140,844

The following table presents long-lived assets by country based on the location of the asset (in thousands):

	December 31,
	2018		2017
United States	$	34,236	$	47,371
UK	2,909		5,510
All Other	395		1,125
	$	37,540	$	54,006