Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On May 1, 2023, we entered into a definitive agreement to sell our Federal and Defense business to Bernhard Capital Partners Management LP for total consideration of up to $100.0 million, consisting of a $50.0 million cash payment at the closing of the transaction and an earn-out payment of up to $50.0 million subject to the achievement of certain milestones. The transaction is expected to close in late 2023 to early 2024 and is subject to customary closing conditions and approvals.

The results of operations from discontinued operations for the three and six months ended June 30, 2023 and 2022, consist of the following (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Revenues	$	67,039	$	71,953	$	133,885	$	142,871
(Loss) income from discontinued operations before income taxes	$	(1,779)	$	3,616	$	(621)	$	3,514
Provision for income taxes	(545)		823		(384)		766
Net (loss) income from discontinued operations	$	(1,234)	$	2,793	$	(237)	$	2,748

The assets and liabilities reported as held for sale consist of the following (in thousands):

		June 30,		December 31,
		2023		2022
Assets
	Cash and cash equivalents	$	178	$	173
	Accounts receivable, net	12,385		14,340
	Unbilled receivables	32,188		30,898
	Inventories	453		270
	Other current assets	8,760		9,244
	Property and equipment, net	6,612		7,467
	Intangible assets, net	3,505		4,066
	Goodwill	31,575		31,575
	Operating lease right-of-use assets	11,369		12,854
	Other assets	34		51
	Total assets held-for-sale(a)	$	107,059	$	110,938
Liabilities
	Accounts payable	$	27,810	$	31,096
	Accrued expenses and other current liabilities	20,609		21,833
	Long-term operating lease obligations	11,186		13,186
	Deferred tax liabilities	4,465		4,635
	Total liabilities held-for-sale(a)	$	64,070	$	70,750
(a) Amounts have been classified as current for the current period consolidated balance sheet and as current and non-current in the consolidated balance sheet for the prior year period.

Selected financial information related to cash flows from discontinued operations is as follows (in thousands):

	For the six months ended June 30,
	2023		2022
Depreciation and amortization	$	1,437	$	1,917
Purchases of property and equipment	$	92	$	144
Stock-based compensation	$	73	$	20