Delaware | 52-2077581 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.0001 par value per share | EGOV | The Nasdaq Stock Market, LLC |
Large accelerated filer ý | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company o |
Emerging growth company o |
March 31, 2019 | December 31, 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | $ | ||||||
Trade accounts receivable, net | ||||||||
Prepaid expenses & other current assets | ||||||||
Total current assets | ||||||||
Property and equipment, net | ||||||||
Right of use lease assets, net | ||||||||
Intangible assets, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | $ | ||||||
Accrued expenses | ||||||||
Lease liabilities | ||||||||
Other current liabilities | ||||||||
Total current liabilities | ||||||||
Deferred income taxes, net | ||||||||
Lease liabilities | ||||||||
Other long-term liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Notes 2, 3 and 6) | ||||||||
Stockholders' equity: | ||||||||
Common stock, $0.0001 par, 200,000 shares authorized, 66,911 and 66,569 shares issued and outstanding | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Total stockholders' equity | ||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenues: | ||||||||
State enterprise revenues | $ | $ | ||||||
Software & services revenues | ||||||||
Total revenues | ||||||||
Operating expenses: | ||||||||
State enterprise cost of revenues, exclusive of depreciation & amortization | ||||||||
Software & services cost of revenues, exclusive of depreciation & amortization | ||||||||
Selling & administrative | ||||||||
Enterprise technology & product support | ||||||||
Depreciation & amortization | ||||||||
Total operating expenses | ||||||||
Operating income | ||||||||
Other income: | ||||||||
Interest income | ||||||||
Income before income taxes | ||||||||
Income tax provision | ||||||||
Net income | $ | $ | ||||||
Basic net income per share | $ | $ | ||||||
Diluted net income per share | $ | $ | ||||||
Weighted average shares outstanding: | ||||||||
Basic | ||||||||
Diluted |
Three Months Ended March 31, 2019 | |||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | |||||||||||||||||
Shares | Amount | Total | |||||||||||||||||
Balance, January 1, 2019 | $ | $ | $ | $ | |||||||||||||||
Net income | — | — | — | ||||||||||||||||
Dividends declared | — | — | — | ( | ) | ( | ) | ||||||||||||
Dividend equivalents on unvested performance-based restricted stock awards | — | — | ( | ) | |||||||||||||||
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards | — | — | ( | ) | |||||||||||||||
Restricted stock vestings | — | — | — | — | |||||||||||||||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | ( | ) | — | ( | ) | — | ( | ) | |||||||||||
Stock-based compensation | — | ||||||||||||||||||
Shares issuable in lieu of dividend payments on performance-based restricted stock awards | — | — | — | — | |||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | |||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ |
Three Months Ended March 31, 2018 | |||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | |||||||||||||||||
Shares | Amount | Total | |||||||||||||||||
Balance, January 1, 2018 | $ | $ | $ | $ | |||||||||||||||
Net cumulative effect of adoption of accounting standard | — | — | — | ||||||||||||||||
Net income | — | — | — | ||||||||||||||||
Dividends declared | — | — | — | ( | ) | ( | ) | ||||||||||||
Dividend equivalents on unvested performance-based restricted stock awards | — | — | ( | ) | |||||||||||||||
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards | — | — | ( | ) | |||||||||||||||
Restricted stock vestings | — | — | — | ||||||||||||||||
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings | ( | ) | — | ( | ) | ( | ) | ||||||||||||
Stock-based compensation | — | — | |||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | ||||||||||||||||||
Balance, March 31, 2018 | $ | $ | $ | $ |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation & amortization | ||||||||
Stock-based compensation expense | ||||||||
Deferred income taxes | ||||||||
Provision for recoveries on accounts receivable | ( | ) | ( | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable, net | ( | ) | ||||||
Prepaid expenses & other current assets | ( | ) | ( | ) | ||||
Other assets | ||||||||
Accounts payable | ( | ) | ||||||
Accrued expenses | ( | ) | ( | ) | ||||
Other current liabilities | ||||||||
Other long-term liabilities | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | ( | ) | ( | ) | ||||
Asset acquisition | ( | ) | ||||||
Capitalized software development costs | ( | ) | ( | ) | ||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities: | ||||||||
Cash dividends on common stock | ( | ) | ( | ) | ||||
Proceeds from employee common stock purchases | ||||||||
Tax withholdings related to stock-based compensation awards | ( | ) | ( | ) | ||||
Net cash used in financing activities | ( | ) | ( | ) | ||||
Net (decrease) increase in cash | ( | ) | ||||||
Cash, beginning of period | ||||||||
Cash, end of period | $ | $ | ||||||
Other cash flow information: | ||||||||
Cash payments: | ||||||||
Income taxes paid, net | $ | $ |
Three Months Ended March 31, 2019 | ||||||||||||
State Enterprise | Software & Services | Consolidated Total | ||||||||||
IGS | $ | $ | $ | |||||||||
DHR | ||||||||||||
Other | ||||||||||||
Total transaction-based | ||||||||||||
Development services | ||||||||||||
Fixed fee management services | ||||||||||||
Total revenues | $ | $ | $ | |||||||||
Three Months Ended March 31, 2018 | ||||||||||||
State Enterprise | Software & Services | Consolidated Total | ||||||||||
IGS | $ | $ | $ | |||||||||
DHR | ||||||||||||
Other | ||||||||||||
Total transaction-based | ||||||||||||
Development services | ||||||||||||
Fixed fee management services | ||||||||||||
Total revenues | $ | $ | $ |
March 31, 2019 | December 31, 2018 | |||||||
Fiscal Year | ||||||||
2019(1) | $ | $ | ||||||
2020 | ||||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | ||||||||
Less: interest | ( | ) | N/A | |||||
Total lease liabilities | $ | N/A |
March 31, 2019 | ||||
Operating lease cost (1) | $ | |||
Weighted-average discount rate | % | |||
Supplemental cash flow information | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Right of use assets obtained in exchange for new lease liabilities (2) |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Numerator: | ||||||||
Net income | $ | $ | ||||||
Less: Income allocated to participating securities | ( | ) | ( | ) | ||||
Net income available to common stockholders | $ | $ | ||||||
Denominator: | ||||||||
Weighted average shares - basic | ||||||||
Performance-based restricted stock awards | ||||||||
Weighted average shares - diluted | ||||||||
Basic net income per share: | $ | $ | ||||||
Diluted net income per share: | $ | $ |
Declaration Date | Dividend per Share | Record Date | Payment Date | Payment |
January 28, 2019 | $ | March 5, 2019 | March 19, 2019 | $ |
January 29, 2018 | $ | March 6, 2018 | March 20, 2018 | $ |
• | Operating income growth (three-year compound annual growth rate); and |
• | Total consolidated revenue growth (three-year compound annual growth rate). |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
State enterprise cost of revenues, exclusive of depreciation & amortization | $ | $ | ||||||
Software & services cost of revenues, exclusive of depreciation & amortization | ||||||||
Selling & administrative | ||||||||
Enterprise technology & product support | ||||||||
Stock-based compensation expense | $ | $ |
State Enterprise | Software & Services | Other Reconciling Items | Consolidated Total | |||||||||||||
2019 | ||||||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||
Costs & expenses | ||||||||||||||||
Depreciation & amortization | ||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | ) | $ | ||||||||||
2018 | ||||||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||
Costs & expenses | ||||||||||||||||
Depreciation & amortization | ||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | ) | $ |
• | Transaction-based: |
• | Development Services: revenues from the performance of software development projects and other time and materials services for our government partners. While we actively market these services, they do not have the same degree of predictability as our transaction-based or fixed fee management services and are generally non-recurring. |
• | Fixed Fee Management Services: our state enterprise business in Indiana earns fixed fees from the performance of digital government services for numerous government partners. |
• | NIC Federal: primarily transaction-based, fees from contracts with certain Federal agencies in the United States, including the Department of Transportation's Federal Motor Carrier Safety Administration ("FMCSA") to manage the Pre-Employment Screening Program ("PSP") and the United States National Park Service to manage the YourPassNow electronic park pass service. We also earn transaction-based revenues as a subcontractor to Booz Allen Hamilton on its Recreation.gov contract. The revenues in NIC Federal are generally recurring under their respective contracts. |
• | Other: primarily transaction-based fees from contracts with state and local governments that are not part of an enterprise-wide state contract. The majority of revenues from these sources are recurring. |
• | Fixed costs include costs such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, telecommunications costs, provision for losses on accounts receivable, and all other costs associated with the provision of dedicated client service such as dedicated facilities. |
• | Variable costs fluctuate with the level of revenues and primarily include interchange fees required to process credit/debit card transactions, bank fees to process automated clearinghouse transactions and, to a much lesser extent, costs associated with revenue share arrangements with certain state partners. A significant percentage of our transaction-based revenues are generated from online applications whereby users pay for information or transactions via credit/debit cards. We typically earn a portion of the credit/debit card transaction amount, but also must pay an associated interchange fee to the financial institution that processes the credit/debit card transaction. We earn a lower incremental gross profit percentage on these transactions as compared to our DHR and other IGS transactions. However, we plan to continue to implement these services because they are needed by our government partners and they contribute favorably to our operating income growth. |
Three Months Ended March 31, | ||||||||||||||
(dollar amounts in thousands) | 2019 | 2018 | Change | % Change | ||||||||||
IGS transaction-based | $ | 50,154 | $ | 50,267 | $ | (113 | ) | — | % | |||||
DHR transaction-based | 23,685 | 27,239 | (3,554 | ) | (13 | )% | ||||||||
Development services | 2,178 | 2,047 | 131 | 6 | % | |||||||||
Fixed fee management services | 1,238 | 1,238 | — | — | % | |||||||||
Total | $ | 77,255 | $ | 80,791 | $ | (3,536 | ) | (4 | )% |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Same-state IGS revenue growth | 15 | % | 10 | % | ||
Same-state DHR revenue growth | 3 | % | 1 | % | ||
Same-state revenue growth - other services* | (4 | )% | 14 | % | ||
Same-state revenue growth - total | 10 | % | 7 | % |
Three Months Ended March 31, | |||||||||||||
(dollar amounts in thousands) | 2019 | 2018 | Change | % Change | |||||||||
NIC Federal | $ | 5,951 | $ | 4,096 | $ | 1,855 | 45% | ||||||
Other | 1,974 | 1,838 | 136 | 7% | |||||||||
Total | $ | 7,925 | $ | 5,934 | $ | 1,991 | 34% |
Three Months Ended March 31, | ||||||||||||||
(dollar amounts in thousands) | 2019 | 2018 | Change | % Change | ||||||||||
Fixed costs | $ | 24,323 | $ | 28,128 | $ | (3,805 | ) | (14 | )% | |||||
Variable costs | 24,332 | 20,514 | 3,818 | 19 | % | |||||||||
Total | $ | 48,655 | $ | 48,642 | $ | 13 | — | % |
Three Months Ended March 31, | ||||||||||||||
(dollar amounts in thousands) | 2019 | 2018 | Change | % Change | ||||||||||
Fixed costs | $ | 2,318 | $ | 1,801 | $ | 517 | 29 | % | ||||||
Variable costs | 402 | 427 | (25 | ) | (6 | )% | ||||||||
Total | $ | 2,720 | $ | 2,228 | $ | 492 | 22 | % |
Three Months Ended March 31, | ||||||||||||||
(dollar amounts in thousands) | 2019 | 2018 | Change | % Change | ||||||||||
Depreciation | $ | 1,025 | $ | 1,448 | $ | (423 | ) | (29 | )% | |||||
Amortization | 1,396 | 617 | 779 | 126 | % | |||||||||
Depreciation & amortization | $ | 2,421 | $ | 2,065 | $ | 356 | 17 | % |
• | fund operations if unforeseen costs arise; |
• | support our expansion into other federal, state and local government agencies beyond what is contemplated if unforeseen opportunities arise; |
• | expand our product and service offerings beyond what is contemplated if unforeseen opportunities arise; |
• | fund acquisitions; |
• | respond to unforeseen competitive pressures; and |
• | acquire technologies beyond what is contemplated. |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||
January 15, 2019 | 2,568 | $ | 13.65 | N/A | N/A | ||||||
January 18, 2019 | 665 | 13.81 | N/A | N/A | |||||||
January 20, 2019 | 2,421 | 13.81 | N/A | N/A | |||||||
January 28, 2019 | 1,502 | 14.13 | N/A | N/A | |||||||
January 30, 2019 | 881 | 14.16 | N/A | N/A | |||||||
February 6, 2019 | 42,726 | 17.31 | N/A | N/A | |||||||
February 22, 2019 | 86,252 | 17.26 | N/A | N/A | |||||||
February 23, 2019 | 15,542 | 17.26 | N/A | N/A | |||||||
Total | 152,557 | 17.01 |
Name | For | Withheld | Broker Non-Votes | |||
Harry H. Herington | 53,129,007 | 454,694 | 8,633,788 | |||
Art N. Burtscher | 52,902,225 | 681,476 | 8,633,788 | |||
Venmal (Raji) Arasu | 51,243,873 | 2,339,828 | 8,633,788 | |||
C. Brad Henry | 51,362,310 | 2,221,391 | 8,633,788 | |||
Alexander C. Kemper | 53,152,830 | 430,871 | 8,633,788 | |||
William M. Lyons | 49,692,874 | 3,890,827 | 8,633,788 | |||
Antony Scott | 53,442,873 | 140,828 | 8,633,788 | |||
Jayaprakash Vijayan | 53,449,477 | 134,224 | 8,633,788 | |||
Pete Wilson | 51,188,875 | 2,394,826 | 8,633,788 |
For | Against | Abstentions | Broker Non-Votes | |||
51,437,925 | 2,095,962 | 49,814 | 8,633,788 |
For | Against | Abstentions | Broker Non-Votes | |||
61,755,292 | 402,012 | 60,185 | — |
10.1* | |
31.1* | |
31.2* | |
32.1** | |
101 | The following financial information from NIC’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, formatted in XBRL (Extensible Business Reporting Language) includes (i) Consolidated Balance Sheets at March 31, 2019 (unaudited) and December 31, 2018, (ii) Consolidated Statements of Income (unaudited) for the three months ended March 31, 2019 and 2018, (iii) Consolidated Statement of Changes in Stockholders’ Equity (unaudited) for the three months ended March 31, 2019 and 2018, (iv) Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2019 and 2018, and (v) the Notes to the Unaudited Consolidated Financial Statements (submitted electronically herewith). |
NIC INC. | ||
Dated: | May 7, 2019 | /s/ Stephen M. Kovzan |
Stephen M. Kovzan | ||
Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 26, 2019 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EGOV | |
Entity Registrant Name | NIC INC | |
Entity Central Index Key | 0001065332 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 66,913,117 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 66,911,000 | 66,569,000 |
Common stock, shares outstanding (in shares) | 66,911,000 | 66,569,000 |
THE COMPANY |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
THE COMPANY | THE COMPANY NIC Inc., together with its subsidiaries (the "Company" or "NIC") is a leading provider of digital government services that help governments use technology to provide a higher level of service to businesses and citizens and increase efficiencies. The Company accomplishes this currently through two channels: its state enterprise businesses and its software & services businesses. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The consolidated financial statements include all of the Company's direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring adjustments) necessary to fairly present the consolidated financial position and the results of operations, changes in stockholders' equity and cash flows of the Company as of the dates and for the interim periods presented. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2018, including the notes thereto, set forth in the Company’s 2018 Annual Report on Form 10-K. Certain amounts in the consolidated statements of income for the three months ended March 31, 2018 were reclassified to conform to the current year presentation. The reclassification had no impact on net income or cash flows for the period ended March 31, 2018. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2019. Recently issued accounting pronouncements Leases In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Expenses are recognized in the statement of income in a manner similar to current accounting guidance. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted the standard and all the related amendments, using a modified retrospective approach at the beginning of the period of adoption. Under this approach, the comparative information was not restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company not to reassess (i) whether expired or existing contracts contain a lease under the new standard, or (ii) the lease classification for expired or existing leases. In addition, the Company did not elect to use hindsight and excluded any lease contracts with terms of twelve months or less during transition. The adoption of the standard resulted in the recognition of ROU lease assets and lease liabilities of $12.6 million and $12.9 million, respectively, as of January 1, 2019. The adoption of the standard did not have an impact on the Company’s consolidated earnings or cash flows for the quarter ended March 31, 2019. Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The ASU will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the standard will be through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s consolidated financial statements. Revenue recognition The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for those goods or services. Disaggregation of Revenue The Company currently earns revenues from three main sources: (i) transaction-based fees, which consist of interactive government services (“IGS”), driver history records (“DHR”) and other transaction-based revenues, (ii) development services and (iii) fixed fee management services. The following table summarizes, by reportable and operating segment, our principal activities from which the Company generates revenue (in thousands):
Transaction-based revenues Under certain contracts with its government partners, the Company agrees to provide continuous access to digital government services that allow consumers to complete secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The Company satisfies its performance obligation by providing access to applications over the contractual term, and by processing transactions as they are initiated by consumers. The performance obligation is satisfied when the Company provides the access and it is used by the consumer. Development services revenues The Company earns development services revenues primarily under contracts to provide software development and other time and materials services to its government partners. These contracts are generally not longer than one year in duration. For services provided under development contracts the performance obligation is either satisfied over time or at a point in time upon customer acceptance. Under its development services contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of March 31, 2019, the total transaction price allocated to unsatisfied performance obligations was approximately $3.8 million. Fixed-fee management services revenues Management services revenues primarily consist of revenues from providing recurring fixed fee digital government services for the Company’s government partner in Indiana. As of March 31, 2019, the Company’s Indiana contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. Unearned Revenues Unearned revenues at March 31, 2019 and December 31, 2018 were approximately $3.1 million and $1.7 million, respectively. The change in the deferred revenue balance for the three months ended March 31, 2019 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.1 million of revenues recognized that were included in the deferred revenue at the beginning of the period. Leases All Company lease arrangements are considered operating leases. Operating leases are included in right of use lease assets and lease liabilities in the consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the term of the lease. On the commencement date of a lease, the Company recognizes a lease liability and corresponding right of use lease asset based on the present value of lease payments over the lease term. Lease agreements generally do not provide an implicit rate and therefore the Company's incremental borrowing rate at the commencement date is used to determine the present value of lease payments. Accretion of the discount on the lease liability is calculated under the effective interest method and included in operating lease cost. The right of use asset also includes any initial direct costs and prepaid lease payments and excludes any lease incentives received by the lessor. The right of use asset is amortized over the lease term and is included in operating lease cost. The result is a single operating lease cost recognized on a straight-line basis over the term of the lease. |
GOVERNMENT CONTRACTS |
3 Months Ended |
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Mar. 31, 2019 | |
Contractors [Abstract] | |
GOVERNMENT CONTRACTS | GOVERNMENT CONTRACTS State enterprise contracts The Company’s state enterprise contracts generally have an initial multi-year term with provisions for renewals for various periods at the option of the government. The Company’s primary business obligation under these contracts is generally to design, build, and operate digital government services on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to digitally complete government-based transactions. NIC typically markets the services and solicits consumers to complete government-based transactions and to enter into subscriber contracts permitting the user to access online applications and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into statements of work with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These statements of work preliminarily establish the pricing of the online transactions and data access services the Company provides and the division of revenues between the Company and the government agency. The government oversight authority must approve prices and revenue sharing agreements. The Company has limited control over the level of fees it is permitted to retain. The Company is typically responsible for funding the up-front development and ongoing operations and maintenance costs of digital government services, and generally owns all the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term or upon termination for cause, the government partner typically receives a perpetual, royalty-free license to use the applications built by the Company only in its own state. However, certain enterprise applications, proprietary customer management, billing, payment processing and other software applications that the Company has developed and standardized centrally are provided to government partners on a software-as-a-service (“SaaS”) basis, and thus would not be included in any royalty-free license. If the Company’s contract expires after a defined term or if its contract is terminated by a government partner for cause, the government agency would be entitled to take over the applications in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. Any renewal of these contracts beyond the initial term by the government is optional and a government may terminate its contract prior to the expiration date if the Company breaches a material contractual obligation and fails to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 16 contracts under which the Company provides enterprise-wide digital government services, as well as the Company’s contract with the Federal Motor Carrier Safety Administration (“FMCSA”), can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 58% of the Company’s total consolidated revenues for the three months ended March 31, 2019. If any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay the Company a fee to continue to use the Company’s applications. Under a typical state enterprise contract, the Company is required to fully indemnify its government partners against claims that the Company’s services infringe upon the intellectual property rights of others and against claims arising from the Company’s performance or the performance of the Company’s subcontractors under the contract. At March 31, 2019, the Company was bound by performance bond commitments totaling approximately $10.8 million on certain state enterprise contracts. Software & services contract The Company’s subsidiary NIC Federal, LLC has a contract with the FMCSA to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a transaction-based business model. In February 2019, the FMCSA extended the current contract through August 27, 2019, and included three six-month renewal options. The contract can be terminated by the FMCSA without cause on a specified period of notice. Expiring contracts There are currently 15 state enterprise contracts, as well as the Company's contract with the FMCSA, that have expiration dates within the 12-month period following March 31, 2019. Collectively, revenues generated from these contracts represented approximately 46% of the Company’s total consolidated revenues for the three months ended March 31, 2019. Although certain of these contracts have renewal provisions, any renewal is at the option of the Company’s government partner. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the applications in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. |
ACQUISITION |
3 Months Ended |
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Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ACQUISITION | ACQUISITION |
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS |
3 Months Ended |
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Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS | DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS The Company has a revolving bank credit facility with Bank of America, N.A. Under the Amended and Restated Credit Agreement ("Credit Agreement"), the credit facility provides $10 million of unsecured financings available to finance working capital, issue letters of credit and finance general corporate purposes. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50 million, subject to securing additional commitments from the bank. The Company can obtain letters of credit in an aggregate amount of $5 million, which reduces the maximum amount available for borrowing under the Credit Agreement. |
LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases office space and certain equipment under noncancelable operating leases. Leases have terms which range from 1 year to 9 years, some of which include options to renew the lease. The exercise of lease renewal options is at the Company’s sole discretion and are included in the lease term when it is reasonably certain the Company will exercise the option on the basis of economic factors. The weighted average remaining lease term for operating leases as of March 31, 2019 was 3.8 years. The aggregate future lease payments for operating leases as of March 31, 2019 and December 31, 2018, which is under previous accounting standards, are as follows (in thousands):
(1) The March 31, 2019 column excludes the three months ended March 31, 2019. Other information related to operating leases is as follows (in thousands):
(1) Includes short-term and variable lease costs, which are not significant. (2) Includes $12.6 million for operating leases existing on January 1, 2019 and $1.1 million for operating leases that commenced in the three months ended March 31, 2019.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. The two-class method is an earnings allocation formula that treats a participating security as having rights to undistributed earnings that would otherwise have been available to common stockholders. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are participating securities. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled 0.7 million for both of the three months ended March 31, 2019 and 2018. Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
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STOCKHOLDERS' EQUITY |
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Equity [Abstract] | ||||||||||||||||||||||||||
STOCKHOLDER'S EQUITY | STOCKHOLDERS’ EQUITY The Company's Board of Directors declared and paid the following dividends (payment in millions):
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
STOCK BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION During the three months ended March 31, 2019, the Compensation Committee of the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 291,935 shares with a grant-date fair value totaling approximately $5.0 million. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. Restricted stock is valued at the date of grant, based on the closing market price of the Company’s common stock, and expensed using the straight-line method over the requisite service period (generally the vesting period of the award). The Company records forfeitures when they occur. During the three months ended March 31, 2019, the Compensation Committee of the Board of Directors of the Company granted performance-based restricted stock awards to certain executive officers pursuant to the terms of the Company’s executive compensation program totaling 111,135 shares with a grant-date fair value totaling approximately $1.9 million. This represents the maximum number of shares the executive officers can earn at the end of a three-year performance period ending December 31, 2021. The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period:
At the end of the three-year period, the executive officers are eligible to receive up to a specified number of shares based upon the Company’s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividends declared during the performance period, payable in the form of additional shares of Company common stock, based upon the maximum number of shares to be earned by the executive officers for each performance-based restricted stock award. Such hypothetical cash dividend payment shall be divided by the fair value of the Company’s common stock on the dividend payment date to determine the maximum number of notional shares to be awarded. At the end of the three-year performance period and on the date some or all of the shares are paid under the agreement, a pro rata number of notional dividend shares will be converted into an equivalent number of dividend shares paid and granted to the executive officers based upon the actual number of underlying shares earned during the performance period. At December 31, 2018, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 22, 2016 ended. Based on the Company’s actual financial results from 2016 through 2018, 64,846 of the shares and 4,226 of dividend equivalent shares were earned. The remaining 73,345 shares subject to the awards were forfeited in the first quarter of 2019. Stock-based compensation cost for performance-based restricted stock awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period and is recognized as expense over the performance period based upon the probable number of shares expected to vest. The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands):
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REPORTABLE SEGMENT AND RELATED INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTABLE SEGMENT AND RELATED INFORMATION | REPORTABLE SEGMENT AND RELATED INFORMATION The state enterprise segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating digital government services on an enterprise-wide basis for state and local governments. The software & services category primarily includes the Company’s subsidiaries that provide software development and digital government services, other than those provided on an enterprise-wide basis, to federal agencies as well as other state and local governments. Each of the Company’s businesses within the Software & Services category is an operating segment and has been grouped together to form the Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all operating segments. The measure of profitability by which management, including the Company’s chief operating decision maker, evaluates the performance of its segments and allocates resources to them is operating income (loss). Segment assets or other segment balance sheet information is not presented to the Company’s chief operating decision maker. Accordingly, the Company has not presented information relating to segment assets. The table below reflects summarized financial information for the Company’s reportable and operating segments for the three months ended March 31, (in thousands):
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SUBSEQUENT EVENT |
3 Months Ended |
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Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | Subsequent EventOn May 1, 2019, the Company completed the stock acquisition of Complia, LLC, a licensing platform business. The Company acquired all of the outstanding equity of Complia, LLC for initial consideration of approximately $10 million in cash. In addition, the sellers are eligible for an earn out, which is capped at $5 million, on new contract wins that utilize the Complia, LLC licensing platform through April 2022. This transaction will be recorded as a business combination, and the purchase price will be allocated to the assets acquired and liabilities assumed based on their estimated fair value. Due to the timing of this transaction, the allocation of the purchase price has not yet been finalized. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The consolidated financial statements include all of the Company's direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of estimates | Use of estimates |
Recently issued accounting pronouncements | Recently issued accounting pronouncements Leases In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Expenses are recognized in the statement of income in a manner similar to current accounting guidance. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted the standard and all the related amendments, using a modified retrospective approach at the beginning of the period of adoption. Under this approach, the comparative information was not restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company not to reassess (i) whether expired or existing contracts contain a lease under the new standard, or (ii) the lease classification for expired or existing leases. In addition, the Company did not elect to use hindsight and excluded any lease contracts with terms of twelve months or less during transition. The adoption of the standard resulted in the recognition of ROU lease assets and lease liabilities of $12.6 million and $12.9 million, respectively, as of January 1, 2019. The adoption of the standard did not have an impact on the Company’s consolidated earnings or cash flows for the quarter ended March 31, 2019. Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The ASU will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the standard will be through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s consolidated financial statements. |
Revenue recognition | Revenue recognition Unearned revenues at March 31, 2019 and December 31, 2018 were approximately $3.1 million and $1.7 million, respectively. The change in the deferred revenue balance for the three months ended March 31, 2019 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.1 million of revenues recognized that were included in the deferred revenue at the beginning of the period. Leases All Company lease arrangements are considered operating leases. Operating leases are included in right of use lease assets and lease liabilities in the consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the term of the lease. On the commencement date of a lease, the Company recognizes a lease liability and corresponding right of use lease asset based on the present value of lease payments over the lease term. Lease agreements generally do not provide an implicit rate and therefore the Company's incremental borrowing rate at the commencement date is used to determine the present value of lease payments. Accretion of the discount on the lease liability is calculated under the effective interest method and included in operating lease cost. The right of use asset also includes any initial direct costs and prepaid lease payments and excludes any lease incentives received by the lessor. The right of use asset is amortized over the lease term and is included in operating lease cost. The result is a single operating lease cost recognized on a straight-line basis over the term of the lease. Under certain contracts with its government partners, the Company agrees to provide continuous access to digital government services that allow consumers to complete secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The Company satisfies its performance obligation by providing access to applications over the contractual term, and by processing transactions as they are initiated by consumers. The performance obligation is satisfied when the Company provides the access and it is used by the consumer. Development services revenues The Company earns development services revenues primarily under contracts to provide software development and other time and materials services to its government partners. These contracts are generally not longer than one year in duration. For services provided under development contracts the performance obligation is either satisfied over time or at a point in time upon customer acceptance. Under its development services contracts, the Company typically does not have significant future performance obligations that extend beyond one year. As of March 31, 2019, the total transaction price allocated to unsatisfied performance obligations was approximately $3.8 million. Fixed-fee management services revenues Management services revenues primarily consist of revenues from providing recurring fixed fee digital government services for the Company’s government partner in Indiana. As of March 31, 2019, the Company’s Indiana contract had unsatisfied performance obligations for one month. The total transaction price allocated to the unsatisfied performance obligation is not significant. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Summary of disaggregation of revenue | The following table summarizes, by reportable and operating segment, our principal activities from which the Company generates revenue (in thousands):
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LEASES (Tables) |
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Schedule of future minimum lease payments | The aggregate future lease payments for operating leases as of March 31, 2019 and December 31, 2018, which is under previous accounting standards, are as follows (in thousands):
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Schedule of other lease information | Other information related to operating leases is as follows (in thousands):
(1) Includes short-term and variable lease costs, which are not significant. (2) Includes $12.6 million for operating leases existing on January 1, 2019 and $1.1 million for operating leases that commenced in the three months ended March 31, 2019.
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EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
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STOCKHOLDERS' EQUITY (Tables) |
3 Months Ended | |||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||
Schedule of dividends declared | The Company's Board of Directors declared and paid the following dividends (payment in millions):
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STOCK BASED COMPENSATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation expense | The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands):
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REPORTABLE SEGMENT AND RELATED INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reportable and operating segments | The table below reflects summarized financial information for the Company’s reportable and operating segments for the three months ended March 31, (in thousands):
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THE COMPANY (Detail) |
Mar. 31, 2019
channel
|
---|---|
Accounting Policies [Abstract] | |
Number of business channels | 2 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|
Accounting Policies [Abstract] | |||
Right of use lease assets, net | $ 12,648 | $ 12,600 | $ 0 |
Lease liability | 13,037 | $ 12,900 | |
Transaction price allocated to unsatisfied performance obligation | 3,800 | ||
Unearned revenues | 3,100 | $ 1,700 | |
Revenues recognized that was included in the deferred revenue balance | $ 1,100 |
ACQUISITION (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 3.6 | ||
Contingent consideration | $ 3.5 | ||
Asset acquisition, contingent consideration, decrease from payment | $ 1.7 | ||
Forecast | |||
Finite-Lived Intangible Assets [Line Items] | |||
Contingent consideration | $ 1.7 |
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS (Details) - USD ($) |
May 01, 2019 |
Mar. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 10,000,000 | |
Credit facility, increase available capacity under the credit agreement | 50,000,000 | |
Letter of credit | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 5,000,000 | |
Line of Credit | LIBOR | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.15% |
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Leases [Abstract] | |||
2019 | $ 3,572 | ||
2020 | 3,703 | ||
2021 | 2,844 | ||
2022 | 2,318 | ||
2023 | 940 | ||
Thereafter | 730 | ||
Total future minimum lease payments | 14,107 | ||
Less: imputed interest | (1,070) | ||
Total lease liabilities | $ 13,037 | $ 12,900 | |
2019 | $ 4,673 | ||
2020 | 3,403 | ||
2021 | 2,604 | ||
2022 | 2,082 | ||
2023 | 698 | ||
Thereafter | 690 | ||
Total future minimum lease payments | $ 14,150 |
LEASES - Other Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Jan. 01, 2019 |
Mar. 31, 2019 |
|
Lessee, Lease, Description [Line Items] | |||
Weighted-average remaining lease term | 3 years 9 months 18 days | 3 years 9 months 18 days | |
Operating lease cost | $ 1,463 | ||
Weighted-average discount rate | 3.80% | 3.80% | |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,089 | ||
Right of use assets obtained in exchange for new lease liabilities | $ 1,100 | $ 12,600 | $ 13,735 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 9 years | 9 years |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | ||
Unvested service-based restricted shares (in shares) | 700 | 700 |
Numerator: | ||
Net income | $ 11,502 | $ 15,508 |
Less: Income allocated to participating securities | (127) | (171) |
Net income available to common stockholders | $ 11,375 | $ 15,337 |
Denominator: | ||
Weighted average shares - basic (in shares) | 66,670 | 66,323 |
Performance-based restricted stock awards (in shares) | 0 | 0 |
Weighted average shares - diluted (in shares) | 66,670 | 66,323 |
Basic net income per share (in usd per share) | $ 0.17 | $ 0.23 |
Diluted net income per share (in usd per share) | $ 0.17 | $ 0.23 |
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
May 07, 2019 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Subsequent Event [Line Items] | |||
Dividends declared (in usd per share) | $ 0.08 | $ 0.08 | |
Dividend payments | $ 5,402 | $ 5,370 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared (in usd per share) | $ 0.08 | ||
Dividend payments | $ 5,400 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Effective federal and state income tax rate | 26.20% | 24.90% |
Severance costs | $ 2.6 |
STOCK BASED COMPENSATION - Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 2,272 | $ 1,511 |
Selling & administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,716 | 838 |
Enterprise technology & product support | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 160 | 191 |
State enterprise | Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 361 | 443 |
Software & services | Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 35 | $ 39 |
REPORTABLE SEGMENT AND RELATED INFORMATION - Additional Information (Details) - segment |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Customer concentration risk | Consolidated revenues | State of Texas | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 20.00% | |
Customer concentration risk | Consolidated revenues | State of Colorado | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 10.00% |
SUBSEQUENT EVENT (Details) - Subsequent Event - Complia LLC $ in Millions |
May 01, 2019
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Consideration transferred | $ 10 |
Earn out potential | $ 5 |
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