0001157523-15-003757.txt : 20151109 0001157523-15-003757.hdr.sgml : 20151109 20151105160356 ACCESSION NUMBER: 0001157523-15-003757 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150930 FILED AS OF DATE: 20151105 DATE AS OF CHANGE: 20151105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NIC INC CENTRAL INDEX KEY: 0001065332 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 522077581 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26621 FILM NUMBER: 151200529 BUSINESS ADDRESS: STREET 1: 25501 W. VALLEY PARKWAY STREET 2: SUITE 300 CITY: OLATHE STATE: KS ZIP: 66061 BUSINESS PHONE: (913) 498-3468 MAIL ADDRESS: STREET 1: 25501 W. VALLEY PARKWAY STREET 2: SUITE 300 CITY: OLATHE STATE: KS ZIP: 66061 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL INFORMATION CONSORTIUM DATE OF NAME CHANGE: 19990618 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL INFORMATION CONSORTIUM INC DATE OF NAME CHANGE: 19990504 10-Q 1 a51212169.htm NIC INC. 10-Q a51212169.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 

For the quarterly period ended September 30, 2015
 
Commission file number 000-26621
 
Logo
 
NIC INC.
(Exact name of registrant as specified in its charter)
 
Delaware
52-2077581
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
25501 West Valley Parkway, Suite 300, Olathe, Kansas 66061
(Address of principal executive offices, including Zip Code)

Registrant’s telephone number, including area code: (877) 234-3468


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 
Large accelerated filer  x
Accelerated filer  o
 
Non-accelerated filer  o
Smaller reporting company  o
 
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

As of October 21, 2015, the number of shares outstanding of the registrant’s common stock, $0.0001 par value per share, was 65,618,917.
 
 
 

 
 
PART I - FINANCIAL INFORMATION
 
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS
 
             
NIC INC.
 
CONSOLIDATED BALANCE SHEETS
 
(UNAUDITED)
 
thousands except par value amount
 
             
       
   
September 30, 2015
   
December 31, 2014
 
ASSETS
 
Current assets:
           
Cash
  $ 122,443     $ 87,983  
Trade accounts receivable, net (Note 1)
    78,621       57,468  
Deferred income taxes, net
    1,046       1,039  
Prepaid expenses & other current assets
    9,710       11,502  
Total current assets
    211,820       157,992  
Property and equipment, net
    9,693       12,247  
Intangible assets, net
    2,174       2,394  
Deferred income taxes, net
    284       -  
Other assets
    433       446  
Total assets
  $ 224,404     $ 173,079  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
               
Accounts payable
  $ 55,235     $ 41,402  
Accrued expenses
    20,635       19,751  
Other current liabilities
    2,470       2,902  
Total current liabilities
    78,340       64,055  
                 
Deferred income taxes, net
    -       1,536  
Other long-term liabilities
    3,825       3,350  
Total liabilities
    82,165       68,941  
                 
Commitments and contingencies (Notes 1 and 2)
    -       -  
                 
Stockholders' equity:
               
Common stock, $0.0001 par, 200,000 shares authorized,
               
    65,618 and 65,303 shares issued and outstanding
    7       7  
Additional paid-in capital
    99,740       94,690  
Retained earnings
    42,492       9,441  
Total stockholders' equity
    142,239       104,138  
Total liabilities and stockholders' equity
  $ 224,404     $ 173,079  
                 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.
 

 
 
2

 

NIC INC.
 
CONSOLIDATED STATEMENTS OF INCOME
 
(UNAUDITED)
 
thousands except per share amounts
 
                         
    Three months ended     Nine months ended  
    September 30,     September 30,  
Revenues:
 
2015
   
2014
   
2015
   
2014
 
Portal revenues
  $ 70,123     $ 65,304     $ 207,067     $ 193,595  
Software & services revenues
    4,924       4,223       14,151       12,484  
Total revenues     75,047       69,527       221,218       206,079  
Operating expenses:
                               
Cost of portal revenues, exclusive of depreciation & amortization (Note 1)
    41,058       39,091       125,367       116,201  
Cost of software & services revenues, exclusive of depreciation & amortization (Note 1)
    1,365       1,287       3,976       3,525  
Selling & administrative (Note 1)
    10,577       10,397       31,933       29,446  
Depreciation & amortization
    2,116       2,292       6,712       6,819  
Total operating expenses     55,116       53,067       167,988       155,991  
Operating income before income taxes
    19,931       16,460       53,230       50,088  
Income tax provision
    7,181       6,099       20,236       19,322  
Net income
  $ 12,750     $ 10,361     $ 32,994     $ 30,766  
                                 
Basic net income per share (Note 1)
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
Diluted net income per share (Note 1)
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
                                 
Weighted average shares outstanding:
                               
Basic
    65,618       65,288       65,532       65,197  
Diluted
    65,637       65,288       65,549       65,197  
                                 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.
 
 
 
 
3

 
 
NIC INC.
 
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
 
(UNAUDITED)
 
thousands
 
                               
                               
               
Additional
             
   
Common Stock
   
Paid-in
    Retained        
   
Shares
   
Amount
   
Capital
   
 Earnings
   
Total
 
Balance, January 1, 2015
    65,303     $ 7     $ 94,690     $ 9,441     $ 104,138  
Net income
    -       -       -       32,994       32,994  
Restricted stock vestings
    336       -       74       -       74  
Dividend equivalents cancelled upon forfeiture of
                                       
performance-based restricted stock awards
    -       -       18       57       75  
Shares surrendered and cancelled upon vesting of
                                       
restricted stock to satisfy tax withholdings
    (96 )     -       (1,645 )     -       (1,645 )
Stock-based compensation
    -       -       5,385       -       5,385  
Tax deductions relating to stock-based compensation
    -       -       236       -       236  
Shares issuable in lieu of dividend payments on unvested
                                       
performance-based restricted stock awards
    -       -       (149 )     -       (149 )
Issuance of common stock under employee stock purchase plan
    75       -       1,131       -       1,131  
Balance, September 30, 2015
    65,618     $ 7     $ 99,740     $ 42,492     $ 142,239  
                                         
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.
 
 
 
4

 
 
NIC INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(UNAUDITED)
 
thousands
 
   
Nine months ended
 
   
September 30,
 
   
2015
   
2014
 
Cash flows from operating activities:
     
Net income
  $ 32,994     $ 30,766  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation & amortization
    6,712       6,819  
Stock-based compensation expense
    5,385       4,568  
Deferred income taxes
    (3,708 )     (2,463 )
Loss on disposal of property and equipment
    26       147  
Changes in operating assets and liabilities:
               
(Increase) in trade accounts receivable, net
    (21,153 )     (9,080 )
Decrease in prepaid expenses & other current assets
    3,673       2,296  
(Increase) decrease in other assets
    13       (62 )
Increase in accounts payable
    13,833       2,402  
(Decrease) in accrued expenses
    (847 )     (3,802 )
Increase (decrease) in other current liabilities
    (432 )     2,404  
Increase in other long-term liabilities
    475       602  
Net cash provided by operating activities
    36,971       34,597  
                 
Cash flows from investing activities:
               
Purchases of property and equipment
    (3,257 )     (3,988 )
Proceeds from sale of property and equipment
    3       -  
Capitalized internal use software development costs
    (624 )     (1,071 )
Net cash used in investing activities
    (3,878 )     (5,059 )
                 
Cash flows from financing activities:
               
Proceeds from employee common stock purchases
    1,131       1,107  
Tax deductions related to stock-based compensation
    236       1,065  
Net cash provided by financing activities
    1,367       2,172  
                 
Net increase in cash
    34,460       31,710  
Cash, beginning of period
    87,983       74,245  
Cash, end of period
  $ 122,443     $ 105,955  
                 
Other cash flow information:
               
Non-cash investing activities:
               
Capital expenditures accrued but not yet paid
  $ 86     $ 75  
Cash payments:
               
Income taxes paid
  $ 19,509     $ 20,664  
Cash dividends on common stock previously restricted for payment of dividend
  $ -     $ 22,982  
                 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.
 
 
 
5

 

NIC INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
The Unaudited Consolidated Financial Statements of NIC Inc. and its subsidiaries (“NIC” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the Unaudited Consolidated Financial Statements reflect all adjustments (which include only normal recurring adjustments, except as disclosed) necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company and its subsidiaries as of the dates and for the interim periods presented. These Unaudited Consolidated Financial Statements and Notes should be read in conjunction with the Audited Consolidated Financial Statements and related Notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 24, 2015, and Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. The consolidated balance sheet data included herein as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
 
The preparation of financial statements in conformity with generally accepted accounting principles 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 the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015.

1.  THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

NIC is a leading provider of eGovernment services that helps governments use the Internet to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software & services businesses.
 
In its primary outsourced portal businesses, the Company generally designs, builds, and operates Internet-based portals on an enterprise-wide basis on behalf of state and local governments desiring to provide access to government information and to complete secure government-based transactions through multiple online channels, including mobile devices. These portals consist of websites and applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts (see Note 2), NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC’s self-funded business model allows the Company to generate revenues by sharing in the fees the Company collects from eGovernment transactions. The Company’s government partners benefit through reducing their financial and technology risks, increasing their operational efficiencies, and gaining a centralized, customer-focused presence on the Internet, while businesses and citizens receive a faster, more convenient, and more cost-effective means to interact with governments. The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the outsourced government portals.
 
The Company’s software & services businesses primarily include its subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies (see Note 2).

Basis of presentation

The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating outsourced portals on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative expenses and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company’s software & services businesses, including information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, corporate-level expenses for market development and public relations, and gains and losses on disposal of assets.

 
6

 
 
The Company reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling & administrative expenses of $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software & services revenues for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows. Certain other income statement amounts for the three- and nine-month periods ended September 30, 2014 have been reclassified to conform to the 2015 presentation.

Trade accounts receivable
 
The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.

One of the customers who does business with many of the Company’s subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in February 2015. In September 2015, this customer successfully emerged from Chapter 11 proceedings pursuant to a confirmed restructuring plan, and the Company’s related accounts receivable were paid in full.

The Company’s allowance for doubtful accounts at both September 30, 2015 and December 31, 2014 was $0.5 million.
 
Earnings per share

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered 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 considered 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 approximately 0.7 million at both September 30, 2015 and 2014. 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.

 
7

 
 
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Numerator:
                       
Net income
  $ 12,750     $ 10,361     $ 32,994     $ 30,766  
Less: Income allocated to participating securities
    (117 )     (94 )     (307 )     (297 )
Net income available to common stockholders
  $ 12,633     $ 10,267     $ 32,687     $ 30,469  
Denominator:
                               
Weighted average shares - basic
    65,618       65,288       65,532       65,197  
Performance-based restricted stock awards
    19       -       17       -  
Weighted average shares - diluted
    65,637       65,288       65,549       65,197  
                                 
Basic net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
                                 
Diluted net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At September 30, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $111.9 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. Early adoption is permitted for an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements.

2.  OUTSOURCED GOVERNMENT CONTRACTS

Outsourced portal contracts

The Company’s outsourced government portal 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 Internet-based portals on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to complete government-based transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the electronic 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. Any changes made to the amount or percentage of fees retained by NIC, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract to NIC.

 
8

 
 
The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the government portals, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that the Company has developed and standardized centrally and that are utilized by the Company’s portal businesses, are being provided to a number of government partners on a software-as-a-service, or “SaaS,” basis, and thus would not be included in any royalty-free license. If the Company’s contract was not renewed after a defined term or if its contract was terminated by a government partner for cause, the government agency would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for services provided by the Company on a SaaS basis, which would be available to the partner on a fee-for-service basis.

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, 17 contracts under which the Company provides services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented 64% and 63%, respectively, of the Company’s total consolidated revenues for the three- and nine-month periods ended September 30, 2015. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay a fee to the Company in order to continue to use the Company’s software in its portal. In addition, the loss of one or more of the Company’s larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Kentucky, New Jersey, Pennsylvania, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce the Company’s revenues and profitability. See the discussion below under “Expiring Contracts” regarding the expiration of the Company’s contracts with the states of Arizona and Delaware.

Under a typical portal contract, the Company is required to fully indemnify its government clients 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. The Company has never had any defaults resulting in draws on performance bonds. At September 30, 2015, the Company was bound by performance bond commitments totaling approximately $6.6 million on certain outsourced portal contracts.

The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of September 30, 2015:
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Connecticut Interactive, LLC
www.ct.gov (Connecticut)
2014
1/9/2017 (1/9/2020)
Wisconsin Interactive Network, LLC
www.wisconsin.gov (Wisconsin)
2013
5/13/2018 (5/13/2023)
Pennsylvania Interactive, LLC
www.pa.gov (Pennsylvania)
2012
11/30/2017 (11/30/2022)
NICUSA, OR Division
www.oregon.gov (Oregon)
2011
11/22/2021
NICUSA, MD Division 
www.maryland.gov (Maryland)
2011
8/10/2017 (8/10/2019)
Mississippi Interactive, LLC
www.ms.gov (Mississippi)
2011
12/31/2015 (12/31/2021)
New Jersey Interactive, LLC
www.nj.gov (New Jersey)
2009
5/1/2020 (5/1/2022)
Texas NICUSA, LLC
www.Texas.gov (Texas)
2009
8/31/2018
West Virginia Interactive, LLC
www.WV.gov (West Virginia)
2007
3/31/2016
Vermont Information Consortium, LLC
www.Vermont.gov (Vermont)
2006
6/8/2016 (6/8/2019)
Colorado Interactive, LLC
www.Colorado.gov (Colorado)
2005
4/30/2019 (4/30/2023)
South Carolina Interactive, LLC
www.SC.gov (South Carolina)
2005
7/15/2019 (7/15/2021)
Kentucky Interactive, LLC
www.Kentucky.gov (Kentucky)
2003
8/31/2016
Alabama Interactive, LLC
www.Alabama.gov (Alabama)
2002
3/1/2016 (3/1/2017)
Rhode Island Interactive, LLC
www.RI.gov (Rhode Island)
2001
7/1/2017 (7/1/2019)
Oklahoma Interactive, LLC
www.OK.gov (Oklahoma)
2001
3/31/2016 (3/31/2020)
Montana Interactive, LLC
www.MT.gov (Montana)
2001
12/31/2017 (12/31/2020)
NICUSA, TN Division
www.TN.gov (Tennessee)
2000
3/31/2017
Hawaii Information Consortium, LLC
 
www.eHawaii.gov (Hawaii)
 
2000
 
1/3/2016
(3-year renewal options)
Idaho Information Consortium, LLC
www.Idaho.gov (Idaho)
2000
6/30/2017
Utah Interactive, LLC
www.Utah.gov (Utah)
1999
6/5/2019
Maine Information Network, LLC
www.Maine.gov (Maine)
1999
7/1/2018
 
 
9

 
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Arkansas Information Consortium, LLC
www.Arkansas.gov (Arkansas)
1997
6/30/2018
Iowa Interactive, LLC
www.Iowa.gov (Iowa)
1997
6/30/2016 (6/30/2020)
Indiana Interactive, LLC
www.IN.gov (Indiana)
1995
7/31/2016
Nebraska Interactive, LLC
www.Nebraska.gov (Nebraska)
1995
1/31/2016
Kansas Information Consortium, LLC
 
www.Kansas.gov (Kansas)
 
1992
 
12/31/2021
(annual 1-year renewal options)
 
During the first quarter of 2015, the Company received two-year contract extensions from the states of Montana and Idaho. In addition, the Company executed one-year contract extensions with the states of Alabama and Tennessee.

During the second quarter of 2015, the Company signed a new one-year contract with the state of Oklahoma, which includes four one-year renewal options for the government to extend the contract. In addition, the Company was awarded a new five-year contract with the state of New Jersey, which includes two one-year renewal options for the government to extend the contract. The Company also executed a three-year contract extension with the state of Utah.

During the third quarter of 2015, the Company executed one-year contract extensions with the Commonwealth of Kentucky and the state of Maryland.

During the fourth quarter of 2015, the Company executed a two-year contract extension with the state of Maine and a one-year contract extension with the state of Texas.

Other outsourced state contracts
 
During the third quarter of 2014, the Company’s subsidiary, Louisiana Interactive, LLC, signed a master contract with the state of Louisiana Division of Administration, Office of Technology Services (“Louisiana Division”) that creates a framework to provide certain eGovernment services for a pilot period. The pilot period commenced during the first quarter of 2015 and the Company anticipates it will conclude in approximately 12-18 months after the commencement of the pilot period. Subsequent to the pilot period, the Louisiana Division has the option to receive enterprise-wide eGovernment services pursuant to the master contract.

The Company’s subsidiary, New Mexico Interactive, LLC, has a contract to manage eGovernment services for the New Mexico Motor Vehicle Division (“MVD”) and its parent, the New Mexico Taxation and Revenue Department. The current contract runs through June 30, 2016 and includes a renewal option for the government to extend the contract for two additional one-year periods.

During the third quarter of 2015, the Company’s subsidiary, Virginia Interactive, LLC (“VI”), extended its agreement with the Virginia Department of Game and Inland Fisheries to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for one additional one-year period. During the third quarter of 2015, VI extended its agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for seven additional one-year periods.

Outsourced federal contracts

The Company’s subsidiary, NIC Federal, LLC (“NIC Federal”, formerly NIC Technologies, LLC) has a contract with the Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using the self-funded, transaction-based business model. During the third quarter of 2015, the Company signed a new one-year contract with the FMCSA that runs through August 31, 2016, which includes two one-year renewal options for the agency to extend the contract.
 
Any renewal of the contract with the FMCSA beyond the current term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce the Company’s revenues and profitability. In addition, the Company has limited control over the level of fees it is permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by the Company, or to the amounts charged for the services offered, could materially affect the profitability of this contract.
 
Expiring contracts

As of September 30, 2015, there were 14 contracts under which the Company provides services that have expiration dates within the 12-month period following September 30, 2015. Collectively, revenues generated from these contracts represented 31% of the Company’s total consolidated revenues for each of the three- and nine-month periods ended September 30, 2015. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for the services the Company provides on a SaaS basis, which would be available to the government agency on a fee-for-service basis.

 
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During the first quarter of 2013, the Company’s subsidiary, NICUSA, Inc. (“NICUSA”), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. NICUSA provided transition services as required by the contract through the March 26, 2014 final expiration date of the contract. The costs incurred in transitioning out of NICUSA’s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the nine-month period ended September 30, 2014, revenues from the legacy Arizona portal contract were approximately $0.8 million.

The contract under which the Company’s subsidiary, Delaware Interactive, LLC (“DI”), managed the state of Delaware’s official government portal expired on March 31, 2015. The primary revenue source for DI under the contract was an annual portal management fee paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it did not intend to renew its contract with DI when the contract term expired. The costs incurred in transitioning out of DI’s contract with the state of Delaware, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the nine-month periods ended September 30, 2015 and 2014, revenues from the Delaware portal contract were approximately $0.6 million and $1.8 million, respectively. For the three-month period ended September 30, 2014, revenues from the Delaware portal contract were approximately $0.6 million.

3.  STOCK BASED COMPENSATION

During the three- and nine-month periods ended September 30, 2015, the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 7,276 shares and 269,431 shares, respectively, with a grant-date fair value totaling approximately $0.1 million and $4.6 million, respectively. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. In addition, during the second quarter of 2015, non-employee directors of the Company were granted service-based restricted stock awards totaling 45,619 shares with a grant-date fair value totaling approximately $0.8 million. These non-employee director restricted stock awards vest one year from the date of grant. 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 estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.

During the first quarter of 2015, the Board of Directors of the Company also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company’s executive compensation program totaling 109,705 shares with a grant-date fair value totaling approximately $1.9 million, which represents the maximum number of shares able to be earned by the executive officers at the end of a three-year performance period ending December 31, 2017. 

The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period:

Operating income growth (three-year compound annual growth rate);
 
Total consolidated revenue growth (three-year compound annual growth rate); and
 
Cash flow return on invested capital, excluding income taxes paid (three-year average).
 
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 dividend declared during the performance period, payable in the form of 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, 2014, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on January 30, 2012 ended. Based on the Company’s actual financial results from 2012 through 2014, 67,239 of the shares subject to the awards and 4,043 dividend shares were earned and vested on January 30, 2015.

 
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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 Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.

The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands):

   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Cost of portal revenues, exclusive of depreciation & amortization
  $ 317     $ 430     $ 1,086     $ 1,032  
Cost of software & services revenues, exclusive of depreciation & amortization
    32       13       54       39  
Selling & administrative
    1,240       1,711       4,245       3,497  
Stock-based compensation expense before income taxes
    1,589       2,154       5,385       4,568  
Income tax benefit
    (573 )     (798 )     (2,047 )     (1,762 )
Net stock-based compensation expense
  $ 1,016     $ 1,356     $ 3,338     $ 2,806  

4.  DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS

On July 9, 2015, the Company entered into Amendment No. 1 to Amended and Restated Credit Agreement (the “Amendment’), which amends the Amended and Restated Credit Agreement, dated as of August 6, 2014, by and between the Company and Bank of America, N.A. (the “Credit Agreement”). The material amendments to the Credit Agreement made by the Amendment include (a) extending the maturity date to May 1, 2017; and (b) decreasing the margin added to the LIBOR rate for any amounts selected by the Company to be borrowed at the LIBOR rate, and the fees payable on outstanding letters of credit, to either 1.15% (if the Company’s consolidated leverage ratio is less than 1.50:1) or 1.25% (if the Company’s consolidated leverage ratio is greater than or equal to 1.50:1) of face value per annum.

The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default. The Amendment also continues to require the Company to maintain compliance with the following financial covenants (in each case, as defined in the Credit Agreement):
 
Consolidated tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the Credit Agreement); and
 
Consolidated maximum leverage ratio of 1.5:1 (the ratio of total funded debt to EBITDA).

The Company was in compliance with each of these covenants at September 30, 2015. The Company issues letters of credit as collateral for certain office leases, and to a much lesser extent, as collateral for performance on one of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $1.2 million and $1.4 million, respectively, at September 30, 2015 and December 31, 2014. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.8 million in available capacity to issue additional letters of credit and $8.8 million of unused borrowing capacity at September 30, 2015 under the facility. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50.0 million, subject to securing additional commitments from the bank.

5.  INCOME TAXES

The Company’s effective tax rate was approximately 36% and 38%, respectively, for the three- and nine-month periods ended September 30, 2015, compared to 37% and 39%, respectively, in the corresponding prior year periods. The Company’s effective tax rate in the current quarter and year-to-date periods was lower than the prior year periods mainly due to the recognition of a favorable income tax benefit resulting from the reduction of uncertain tax positions in connection with the expiration of the statute of limitations, the completion of an IRS examination of the Company’s 2012 federal tax return and other adjustments related to the filing of the Company’s 2014 federal tax return during the third quarter of 2015.

6.  REPORTABLE SEGMENT AND RELATED INFORMATION

The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating outsourced state and local government portals and the corporate divisions that directly support portal operations. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and has been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Unallocated corporate-level expenses are reported in the reconciliation of the segment totals to the related consolidated totals as “Other Reconciling Items.” There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and operating segments.
 
 
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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) before income taxes. 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-month period ended September 30 (in thousands):

   
Outsourced
Portals
   
Other
Software & Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 70,123     $ 4,924     $ -     $ 75,047  
Costs & expenses
    44,703       1,365       6,932       53,000  
Depreciation & amortization
    1,973       15       128       2,116  
Operating income (loss) before income taxes
  $ 23,447     $ 3,544     $ (7,060 )   $ 19,931  
                                 
2014
                               
Revenues
  $ 65,304     $ 4,223     $ -     $ 69,527  
Costs & expenses (1)
    42,529       1,316       6,930       50,775  
Depreciation & amortization
    2,201       8       83       2,292  
Operating income (loss) before income taxes
  $ 20,574     $ 2,899     $ (7,013 )   $ 16,460  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs & expenses in Outsourced Portals. See Note 1.

The table below reflects summarized financial information for the Company’s reportable and operating segments for the nine-month period ended September 30 (in thousands):
 
 
   
Outsourced
Portals
   
Other
Software &
Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 207,067     $ 14,151     $ -     $ 221,218  
Costs & expenses
    136,201       3,975       21,100       161,276  
Depreciation & amortization
    6,322       33       357       6,712  
Operating income (loss) before income taxes
  $ 64,544     $ 10,143     $ (21,457 )   $ 53,230  
                                 
2014
                               
Revenues
  $ 193,595     $ 12,484     $ -     $ 206,079  
Costs & expenses (1)
    125,916       3,595       19,661       149,172  
Depreciation & amortization
    6,568       29       222       6,819  
Operating income (loss) before income taxes
  $ 61,111     $ 8,860     $ (19,883 )   $ 50,088  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs & expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software & Services. See Note 1.

The Company’s Texas portal contract accounted for approximately 21% of the Company’s total consolidated revenues for the three- and nine-month periods ended September 30, 2015 compared to 22% in the corresponding prior year periods. No other state portal contract accounted for more than 10% of the Company’s total consolidated revenues.

 
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7.  SUBSEQUENT EVENT

Special Cash Dividend

On November 2, 2015, the Company’s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, which is expected to total approximately $36.5 million based on the current number of shares outstanding, will be paid on January 4, 2016, out of the Company’s available cash. In addition, holders of performance-based restricted stock on the record date will accrue dividend equivalents that may be earned and become payable in the form of shares of common stock at the end of the respective performance period to the extent that the underlying shares of restricted stock are earned.
 
ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

Statements in this Quarterly Report on Form 10-Q regarding NIC Inc. and its subsidiaries (the “Company”, “NIC”, “we” or “us”) and its business, which are not current or historical facts, are “forward-looking statements” that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements of plans and objectives, statements of future economic performance or financial projections, statements regarding the planned implementation of new portal contracts and new projects under existing portal contracts, statements of assumptions underlying such statements, and statements of the Company’s or management’s intentions, hopes, beliefs, expectations, or predictions of the future. For example, statements like we “expect,” we “believe,” we “plan,” we “intend,” or we “anticipate” are forward-looking statements. Investors should be aware that our actual operating results and financial performance may differ materially from our expressed expectations because of risks and uncertainties about the future including those risks discussed in this Quarterly Report on Form 10-Q and in our 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2015.

There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, NIC’s ability to successfully integrate into its operations recently awarded eGovernment contracts; NIC’s ability to implement its new portal contracts in a timely and cost-effective manner; NIC’s ability to successfully increase the adoption and use of eGovernment services; the possibility of reductions in fees or revenues as a result of budget deficits, government shutdowns, or changes in government policy; the success of the Company in renewing existing contracts and in signing contracts with new states and federal government agencies; continued favorable government legislation; NIC’s ability to develop new services; existing states and agencies adopting those new services; acceptance of eGovernment services by businesses and citizens; competition; the possibility of security breaches or disruptions through cyber attacks or other events and any resulting liability; and general economic conditions and the other factors discussed under “CAUTIONS ABOUT FORWARD LOOKING STATEMENTS” in Part I and “RISK FACTORS” in Part I, Item 1A of NIC’s 2014 Annual Report on Form 10-K filed on February 24, 2015 with the SEC. Investors should read all of these discussions of risks carefully.

All forward-looking statements made in this Form 10-Q speak only as of the date of this report. We will not update the information in this Form 10-Q if any forward-looking statement later turns out to be inaccurate. Investors are cautioned not to put undue reliance on any forward-looking statement.

WHAT WE DO – AN EXECUTIVE SUMMARY

We are a leading provider of eGovernment services that helps governments use the Internet to reduce internal costs, increase efficiencies, and provide a higher level of service to businesses and citizens. We accomplish this currently through two channels: our primary outsourced portal businesses and our software & services businesses.

In our primary outsourced portal business, we generally enter into contracts primarily with state and local governments to design, build, and operate Internet-based enterprise-wide portals on their behalf. We typically enter into multi-year contracts and manage operations for each government partner through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. Our portals consist of websites and applications that we build, which allow businesses and citizens to access government information through multiple online channels, including mobile, and complete secure transactions, including applying for a permit, retrieving government records, or filing a government-mandated form or report. We help increase our government partners’ revenues by expanding the distribution of their information assets and increasing the number of financial transactions conducted with governments. We do this by marketing portal services and soliciting users to complete government-based transactions and to enter into subscriber contracts that permit users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. We are typically responsible for funding up-front investment and ongoing operations and maintenance costs of the government portals. Our unique self-funded business model allows us to generate revenues by sharing in the fees collected from eGovernment transactions. Our partners benefit because they reduce their financial and technology risks, increase their operational efficiencies, and gain a centralized, customer-focused presence on the Internet, while businesses and citizens gain a faster, more convenient, and more cost-effective means to interact with governments.

 
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On behalf of our government partners, we enter into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the electronic transactions and data access services we provide and the division of revenues between the Company and the government agency. The government oversight authority must approve prices and revenue sharing agreements. We have limited control over the level of fees we are permitted to retain. Any changes made to the amount or percentage of fees retained by us, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract to us. We typically own all the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that we have developed and standardized centrally and that are utilized by our portal businesses, are being provided to a number of our government partners on a software-as-a-service, or “SaaS,” basis, and thus would not be included in any royalty-free license. If our contract was not renewed after a defined term or if our contract was terminated by our government partner for cause, the government agency would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for the services we provide on a SaaS basis, which would be available to our partners on a fee-for-service basis. We also provide certain payment processing services on a SaaS basis to a few private sector entities and non-NIC portal state agencies, and may continue to market these services to other entities in the future. Historically, revenues from these services have not been significant, but have been steadily growing in recent years. In some cases, we enter into contracts to provide consulting, application development and portal management services to governments in exchange for an agreed-upon fee.

Any renewal of the outsourced portal contracts beyond the initial term is optional and a government may terminate its contract prior to the expiration date if we breach a material contractual obligation and fail to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 17 contracts under which we provide services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented 64% and 63%, respectively, of our total consolidated revenues for the current quarter and year-to-date periods. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay a fee to us in order to continue to use our software in its portal. In addition, the loss of one or more of our larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Kentucky, New Jersey, Pennsylvania, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce our revenues and profitability. See the discussion below regarding the expiration of our contracts with the states of Arizona and Delaware.

In our software & services businesses, the majority of our revenues are generated from a contract with the Federal Motor Carrier Safety Administration (“FMCSA”), to provide outsourced services through our NIC Federal, LLC (“NIC Federal”, formerly NIC Technologies, LLC) subsidiary. The contract with the FMCSA to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide uses the self-funded, transaction-based business model. During the third quarter of 2015, we signed a new one-year contract with the FMCSA that runs through August 16, 2016, which includes two one-year renewal options for the agency to extend the contract.

Any renewal of the contract with the FMCSA beyond the current term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce our revenues and profitability. In addition, we have limited control over the level of fees we are permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by us, or to the amounts charged for the services offered, could materially affect the profitability of this contract. 

As of September 30, 2015, there were 14 contracts under which we provide services that have expiration dates within the 12-month period following September 30, 2015. Collectively, revenues generated from these contracts represented 31% of our total consolidated revenues for the current quarter and year-to-date periods. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place with no future obligation on our part, except as otherwise provided in the contract and except for the services we provide on a SaaS basis, which would be available to the government agency on a fee-for-service basis.

During the first quarter of 2013, our subsidiary, NICUSA, Inc. (“NICUSA”), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. NICUSA provided transition services as required by the contract through the March 26, 2014 final expiration date of the contract. The costs incurred in transitioning out of NICUSA’s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on our consolidated results of operations, cash flows, or financial condition. For the nine-month period ended September 30, 2014, revenues from the legacy Arizona portal contract were approximately $0.8 million.

 
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The contract under which our subsidiary, Delaware Interactive, LLC (“DI”), managed the state of Delaware’s official government portal expired on March 31, 2015. The primary revenue source for DI under the contract was an annual portal management fee paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it did not intend to renew its contract with DI when the contract term expired. The costs incurred in transitioning out of DI’s contract with the state of Delaware, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on our consolidated results of operations, cash flows, or financial condition. For the nine-month periods ended September 30, 2015 and 2014, revenues from the Delaware portal contract were approximately $0.6 million and $1.8 million, respectively. For the three-month period ended September 30, 2014, revenues from the Delaware portal contract were approximately $0.6 million.

OVERVIEW OF BUSINESS MODELS AND REVENUE RECOGNITION

We classify our revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category includes revenues and cost of revenues primarily from our subsidiaries operating state and local government portals on an outsourced basis. The software & services category primarily includes revenues and cost of revenues from our subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. We currently earn revenues from three main sources: transaction-based fees, time and materials-based fees for application development, and fixed fees for portal management services. Each of these revenue types and the corresponding business models are further described below.

Our outsourced portal businesses

We categorize our portal revenues according to the underlying source of revenue. A brief description of each category follows:

IGS transaction-based: transaction fees from interactive government services, referred to as IGS, are fees from sources other than electronic access to motor vehicle driver history records, for transactions conducted by business users and consumer users through our portals and are generally recurring. For a representative listing of the IGS transactions we currently offer through our portals, refer to Part I, Item 1 in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 24, 2015.

DHR transaction-based: transaction fees from driver history records, referred to as DHR, are fees for providing electronic access to motor vehicle driver history records from our state portals to data resellers, insurance companies, and other pre-authorized customers on behalf of our state partners, and are generally recurring.

Portal software development and services: these are revenues from the performance of application 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 portal management revenues and are not generally recurring. As a result, these revenues are excluded from our recurring portal revenue percentage.
 
Portal management: these are revenues from the performance of fixed fee portal management services for our current and former government partners in the states of Indiana, Delaware and Arizona and are generally recurring. Our Arizona portal contract expired on March 26, 2014 and our Delaware portal contract expired on March 31, 2015.
 
Our software & services businesses

NIC Federal currently earns a significant portion of its revenues from its contract with the FMCSA to develop and manage the PSP for motor carriers nationwide, using a self-funded, transaction-based business model. NIC Federal recognizes revenues from this contract (primarily transaction-based information access fees) when the services are provided at the time of the transactions. NIC Federal also earns a portion of its revenues from fixed fee and time and materials application development and outsourced maintenance contracts with other government agencies and recognizes revenues as services are provided.

CRITICAL ACCOUNTING POLICIES

There have been no material changes in our critical accounting policies from the information provided under “Critical Accounting Policies” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 24, 2015.

 
16

 

RESULTS OF OPERATIONS

The following discussion summarizes the significant factors affecting operating results for the three- and nine-month periods ended September 30, 2015 and 2014. This discussion and analysis should be read in conjunction with our Unaudited Consolidated Financial Statements and the related Notes included in this Form 10-Q.

Due to the expiration of our contracts with the states of Arizona and Delaware on March 26, 2014 and March 31, 2015, respectively, the operating results for our Arizona and Delaware portals have been removed from the same state category for the three- and nine-month periods ended September 30, 2015. Furthermore, our newer portal contract with the state of Connecticut has been excluded from the same state category for the nine-month period ended September 30, 2015, because it had not generated self-funded revenues for two full comparable periods. We generated no revenues from the Louisiana pilot for the three- and nine-month periods ended September 30, 2015.

We reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling & administrative expenses of approximately $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software & services revenues for the nine-month period ended September 30, 2014. In addition, the reclassification resulted in a reduction of selling & administrative expenses as a percentage of total consolidated revenues of 1% and 2%, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding decreases in portal gross profit percentage for the same periods and a 1% decrease in software & services gross profit percentage for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows.

   
Three months ended
 
Nine months ended
   
September 30,
 
September 30,
Key Financial Metrics
 
2015
 
2014
 
2015
 
2014
Revenue growth - outsourced portals
    7 %     13 %     7 %     9 %
Same state revenue growth - outsourced portals
    8 %     9 %     8 %     8 %
Recurring portal revenue as a % of total portal revenues
    96 %     95 %     96 %     95 %
Gross profit % - outsourced portals
    41 %     40 %     39 %     40 %
Revenue growth - software & services
    17 %     17 %     13 %     17 %
Gross profit % - software & services
    72 %     70 %     72 %     72 %
Selling & administrative expenses as a % of total revenues
    14 %     15 %     14 %     14 %
Operating income margin % (operating income as a % of total revenues)
    27 %     24 %     24 %     24 %

PORTAL REVENUES. In the analysis below, we have categorized our portal revenues according to the underlying source of revenue (in thousands), with the corresponding percentage increase or decrease from the prior year period.

   
Three months ended September 30,
   
Nine months ended September 30,
 
Portal Revenue Analysis
 
2015
   
% Change
 
2014
   
2015
   
% Change
 
2014
 
IGS transaction-based
  $ 39,536       11 %   $ 35,688     $ 116,318       11 %   $ 104,741  
DHR transaction-based
    26,425       7 %     24,695       77,720       6 %     73,188  
Portal software development
    2,887       (7 %)     3,101       8,659       (8 %)     9,416  
Portal management
    1,275       (30 %)     1,820       4,370       (30 %)     6,250  
Total
  $ 70,123       7 %   $ 65,304     $ 207,067       7 %   $ 193,595  

 Portal revenues in the current quarter increased 7%, or approximately $4.8 million, over the prior year quarter mainly due to an 8%, or $5.4 million, increase in same state portal revenues (portals in operation and generating self-funded revenues for two full comparable periods). The increase in same state portal revenues was partially offset by a 1%, or $0.6 million, decrease in revenues from our Delaware portal due to the expiration of our contract with the state of Delaware on March 31, 2015, as further discussed above.
 
Same state portal revenues in the current quarter increased 8% over the prior year quarter primarily due to higher revenues from our Colorado, Wisconsin and Texas portals, among others. Same state IGS transaction-based revenues grew 11% in the current quarter compared to 9% in the prior year quarter. The increase in same state IGS transaction-based revenues in the current quarter was due to higher revenues from several key services, including motor vehicle registrations in Colorado and vital record searches in Texas. Same state DHR transaction-based revenues grew 7% in the current quarter compared to 9% in the prior year quarter. The higher growth in the prior year quarter was mainly due to DHR price increases in one of our state portal portals that became effective in April 2014 and in one of our state portals that became effective in August 2013 as well higher transaction volumes in the prior year quarter. The increase in same state DHR transaction-based revenues in the current quarter was mainly due to a full quarter of revenues from a new DHR monitoring service in one of our state portals (launched in the second quarter of 2015) and a DHR price increase in one of our state portals that became effective in the first quarter of 2015. Same state portal software development and services revenues decreased 7% in the current quarter due to lower project-based revenues from our Oregon and Montana portals, among others.
 
 
17

 
 
Portal revenues in the current year-to-date period increased 7%, or approximately $13.5 million, over the prior year-to-date period, mainly due to an 8%, or $14.3 million, increase in same state portal revenues. The increase in revenues from our newer portal in Connecticut, which began generating revenues in April 2014, totaling approximately $1.2 million was offset by a decrease in revenues from our legacy Arizona and Delaware portals totaling approximately $2.0 million due to contract expirations, as further discussed above.

Same state portal revenues in the current year-to-date period increased 8% over the prior year-to-date period, primarily due to higher revenues from our Colorado, Texas and Wisconsin portals, among others. Same state IGS transaction-based revenues increased 11% in the current year-to-date period compared to 9% in the prior year-to-date period. The increase in same state IGS transaction-based revenues in the current year-to-date period was due to higher revenues from several key services, including vital record searches in Texas and motor vehicle registrations in Colorado. Same state IGS transaction-based revenues were negatively impacted in the current year-to-date period by a decline in revenues from our Texas portal totaling approximately $0.7 million due to a change in legislation that affected the timing of revenues from a vehicle inspection service with the Texas Department of Public Safety. Same state DHR transaction-based revenues grew 5% in the current year-to-date period compared to 7% in the prior year-to-date period. The higher growth in the prior year-to-date period was mainly due to a DHR price increase in one of our state portals that became effective in the third quarter of 2013 and higher transaction volumes in the prior year-to-date period. The increase in same state DHR transaction-based revenues in the current year-to-date period was mainly due to DHR price increases in two of our state portals that became effective in the second quarter of 2014 and in one of our state portals that became effective in the first quarter of 2015, as well as a new DHR monitoring service in one of our state portals which launched in the second quarter of 2015. Same state portal software development and services revenues decreased 8% in the current year-to-date period mainly due to lower project-based revenues from our Texas and Arkansas portals, among others. Our same state portal software development and services revenues increased 2% in the prior year-to-date period due to higher project-based revenues from our Indiana, Hawaii and Arkansas portals, among others.

COST OF PORTAL REVENUES. In the analysis below, we have categorized our cost of portal revenues between fixed and variable costs (in thousands), with the corresponding percentage increase or decrease from the prior year period. Fixed costs include costs such as employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications and all other costs associated with the provision of dedicated client service such as dedicated facilities. Variable costs consist of costs that vary with our level of portal revenues and primarily include interchange fees required to process credit/debit card and automated clearinghouse transactions and, to a lesser extent, costs associated with revenue share arrangements with our state partners.  

   
Three months ended September 30,
   
Nine months ended September 30,
 
Cost of Portal Revenue Analysis
 
2015
   
% Change
 
2014
   
2015
   
% Change
 
2014
 
Fixed costs
  $ 25,346       0 %   $ 25,293     $ 79,396       6 %   $ 75,022  
Variable costs
    15,712       14 %     13,798       45,971       12 %     41,179  
Total
  $ 41,058       5 %   $ 39,091     $ 125,367       8 %   $ 116,201  

Cost of portal revenues in the current quarter increased 5%, or approximately $2.0 million, over the prior year quarter due mainly to a 5%, or $2.0 million, increase in same state costs and to start-up costs from the Louisiana pilot ($0.3 million). These increases were partially offset by a $0.3 million decrease in costs from our legacy Delaware portal due the expiration of our contract with the state of Delaware on March 31, 2015, as further discussed above.

The increase in same state cost of portal revenues in the current quarter was mainly due to an increase in variable fees to process credit/debit card transactions, due mainly to higher IGS transaction volumes, as further discussed above. A significant percentage of our IGS transaction-based revenues are generated from online applications whereby users pay for information or transactions via credit/debit cards. We typically earn a percentage of the credit/debit card transaction amount, but also must pay an associated interchange fee to the bank 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 as they contribute favorably to our operating income growth.

Our portal gross profit percentage was 41% in the current quarter, up from 40% in the prior year quarter, due in part, to revenues generated from a new DHR monitoring service in one of our state portals. Our portal gross profit percentage in the prior year quarter was negatively impacted by start-up dilution from our newer Wisconsin portal. We carefully monitor our portal gross profit percentage to strike the balance between generating a solid return for our stockholders and delivering value to our government partners through reinvestment in our portal operations (which we believe also benefits our stockholders).

Cost of portal revenues for the current year-to-date period increased 8%, or approximately $9.2 million, over the prior year-to-date period due mainly to an 8%, or $8.8 million, increase in same state costs, an increase in costs from our newer portal in Connecticut ($0.5 million) and start-up costs from the Louisiana pilot ($0.9 million). These increases were partially offset by a decrease in costs from our legacy Arizona ($0.5 million) and Delaware ($0.5 million) portals due to contract expirations, as further discussed above.

 
18

 

The increase in same state cost of portal revenues in the current year-to-date period was partially attributable to higher employee compensation and benefit costs, as well as higher software maintenance costs across various portals, and an increase in variable fees to process credit/debit card transactions, due mainly to higher IGS transaction volumes, as further discussed above.

Our portal gross profit percentage was 39% for the current year-to-date period, down from 40% in the prior year-to-date period, due mainly to lower gross profits in the current year-to-date period from our Texas portal driven by a decline in Texas vehicle inspection revenues, as further discussed above, start-up costs from our pilot program in Louisiana ($0.9 million) and a decrease in gross profits from our legacy Arizona ($0.3 million) and Delaware ($0.7 million) portals due to the contract expirations, as further discussed above.

SOFTWARE & SERVICES REVENUES. In the analysis below, we have categorized our software & services revenues by business (in thousands), with the corresponding percentage increase or decrease from the prior year period.

   
Three months ended September 30,
   
Nine months ended September 30,
 
Software & Services Revenue Analysis
 
2015
   
% Change
 
2014
   
2015
   
% Change
 
2014
 
NIC Federal (formerly, NIC Technologies)
  $
3,455
      22 %   $ 2,843     $ 9,760       18 %   $ 8,301  
Other
    1,469       6 %     1,380       4,391       5 %     4,183  
Total
  $ 4,924       17 %   $ 4,223     $ 14,151       13 %   $ 12,484  
 
Software & services revenues in the current quarter and year-to-date periods increased 17% and 13%, or approximately $0.7 million and $1.7 million, respectively, over the corresponding prior year periods, due to higher revenues from our contract with the FMCSA as a result of increased adoption of the PSP.

COST OF SOFTWARE & SERVICES REVENUES. Cost of software & services in the current quarter and year-to-date periods increased 6% and 13%, or approximately $0.1 million and $0.4 million, respectively, over the corresponding prior year periods due mainly to higher interchange fees incurred as a result of the increase in credit/debit card transactions in our payment processing businesses and higher employee compensation and benefits costs.

SELLING & ADMINISTRATIVE. As a percentage of total consolidated revenues, selling & administrative expenses were 14% in both the current quarter and year-to-date periods, compared to 15% and 14% in the corresponding prior year periods. Selling & administrative expenses in the current quarter and year-to-date periods increased 2% and 8%, or approximately $0.2 million and $2.5 million, respectively, over the corresponding prior year periods mainly due to higher sales & marketing expenses for personnel related to federal business development, higher personnel and software maintenance costs to support and enhance corporate-wide information technology, security and portal operations, and higher executive management incentive stock-based compensation expense.
 
INCOME TAXES. Our effective tax rate was approximately 36% and 38%, respectively, for the three- and nine-month periods ended September 30, 2015, compared to 37% and 39%, respectively, in the corresponding prior year periods. Our effective tax rate in the current quarter and year-to-date periods was lower than the prior year periods mainly due to the recognition of a favorable income tax benefit resulting from the reduction of uncertain tax positions in connection with the expiration of the statute of limitations, the completion of an IRS examination of our 2012 federal tax return and other adjustments related to the filing of our 2014 federal tax return during the third quarter of 2015.

Liquidity and Capital Resources

Operating activities

Net cash provided by operating activities was approximately $37.0 million in the current year-to-date period compared to $34.6 million in the prior year-to-date period. The increase in cash flow from operating activities in the current period was mainly the result of (i) an increase in net income, excluding non-cash charges for depreciation & amortization, deferred income taxes and stock-based compensation; (ii) the timing of accounts receivable collections in our Texas portal, including the vehicle inspection service with the Texas Department of Public Safety, and in our Colorado portal, among others; and (iii) the timing of payments to our government partners in Colorado and New Jersey, among others.

Investing activities
 
Net cash used in investing activities was approximately $3.9 million in the current year-to-date period compared to $5.1 million in prior year-to-date period. Investing activities in the current and prior year-to-date periods primarily reflect $3.3 million and $4.0 million, respectively, of capital expenditures, which were for fixed asset additions in our outsourced portal businesses including additional capital expenditures in our new state portals and in our centralized hosting environment to support and enhance corporate-wide information technology and security infrastructure, including Web servers, purchased software and office equipment. Furthermore, in the current and prior year-to-date periods, we capitalized approximately $0.6 million and $1.1 million, respectively, of internal-use software development costs primarily related to the standardization of centralized customer management, billing and payment processing systems that support our portal operations and accounting systems.

 
19

 
 
Financing activities
 
Net cash provided by financing activities was approximately $1.4 million in the current year-to-date period compared to $2.2 million in the prior year-to-date period. Financing activities in the current and prior year-to-date periods primarily reflect the receipt of approximately $1.1 million in proceeds from our employee stock purchase program and tax deductions of approximately $0.3 million and $1.1 million, respectively, related to stock-based compensation.

Liquidity

We recognize revenues primarily from providing outsourced government portal services net of the transaction fees due to the government when the services are provided. We recognize accounts receivable at the time these services are provided, and also accrue the related fees that we must remit to the government as accounts payable at such time. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. We typically collect a majority of our accounts receivable prior to remitting amounts payable to our government partners.

We believe our working capital and current ratio are important measures of our short-term liquidity. Working capital, defined as current assets minus current liabilities, increased to $133.5 million at September 30, 2015, from $93.9 million at December 31, 2014. The increase in our working capital was primarily due to cash generated from operating activities and the timing of payments to our government partners. Our current ratio, defined as current assets divided by current liabilities, was 2.7 at September 30, 2015 compared to 2.5 at December 31, 2014.

At September 30, 2015, our cash balance was $122.4 million compared to $88.0 million at December 31, 2014. We believe that our currently available liquid resources and cash generated from operations will be sufficient to meet our operating requirements, capital expenditure requirements, current growth initiatives, and dividend payments for at least the next 12 months without the need for additional capital. We have a $10.0 million unsecured revolving credit facility with a bank that is available to finance working capital, issue letters of credit and finance general corporate purposes. The Credit Agreement also includes an accordion feature that will allow us to increase the available capacity under the Credit Agreement to $50.0 million, subject to securing additional commitments from the bank. We can obtain letters of credit in an aggregate amount of $5.0 million, which reduces the maximum amount available for borrowing under the facility. In total, we had $3.8 million in available capacity to issue additional letters of credit and $8.8 million of unused borrowing capacity at September 30, 2015 under the facility. We were in compliance with all of the financial covenants under the revolving credit facility at September 30, 2015.

We issue letters of credit as collateral for certain office leases, and to a much lesser extent, as collateral for performance on one of our outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. We had unused outstanding letters of credit totaling approximately $1.2 million at September 30, 2015. We are not currently required to cash collateralize these letters of credit. As further discussed in Note 4 in the Notes to Unaudited Consolidated Financial Statements in this Form 10-Q, on July 9, 2015, we entered into an amendment to our Credit Agreement to, among other things, extend our credit facility to May 1, 2017.

At September 30, 2015, we were bound by performance bond commitments totaling approximately $6.6 million on certain outsourced government portal contracts. We have never had any defaults resulting in draws on performance bonds. Had we been required to post 100% cash collateral at September 30, 2015 for the face value of all performance bonds, letters of credit, and our line of credit in conjunction with a corporate credit card agreement, unrestricted cash would have decreased by approximately $8.8 million and would have been classified as restricted cash.
 
On November 2, 2015, our Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, which is expected to total approximately $36.5 million based on the current number of shares outstanding, will be paid on January 4, 2016, out of our available cash. On October 27, 2014, our Board of Directors declared a $0.50 per share special cash dividend totaling approximately $33.0 million that was paid out of our available cash on November 20, 2014. On October 28, 2013, our Board of Directors declared a $0.35 per share special cash dividend totaling approximately $23.0 million that was paid out of our available cash on January 2, 2014. We do not believe these dividends will have a significant effect on our future liquidity needs.
 
We may need to raise additional capital within the next 12 months to further:
 
fund operations if unforeseen costs arise;
 
support our expansion into other states and government agencies beyond what is contemplated if unforeseen opportunities arise;
 
expand our product and service offerings beyond what is contemplated if unforeseen opportunities arise;
 
respond to unforeseen competitive pressures; and
 
acquire technologies beyond what is contemplated.
 
 
20

 
 
Any projections of future earnings and cash flows are subject to substantial uncertainty. If our cash generated from operations and the unused portion of our line of credit are insufficient to satisfy our liquidity requirements, we may seek to sell additional equity securities or issue debt securities. The sale of additional equity securities could result in dilution to our stockholders. There can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all.

Off-balance sheet arrangements and contractual obligations

We do not have off-balance sheet arrangements that are not recorded or disclosed in our financial statements. As of September 30, 2015, there have been no material changes outside the ordinary course of business from the disclosures relating to contractual obligations contained under “Off-Balance Sheet Arrangements and Contractual Obligations” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 24, 2015. While we have significant operating lease commitments for office space, except for our headquarters, those commitments are generally tied to the period of performance under related portal contracts. We have income tax uncertainties of approximately $3.2 million at September 30, 2015. These obligations are classified as non-current on our consolidated balance sheet, as resolution is expected to take more than a year. We estimate that these matters could be resolved in one to three years. However, the ultimate timing of resolution is uncertain.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
INTEREST RATE RISK.  Our cash is held entirely in domestic non-interest bearing transaction accounts.

We currently have no principal amounts of indebtedness outstanding under our line of credit. Borrowings under our line of credit bear interest at a floating rate. Interest on amounts borrowed is payable (1) for LIBOR Rate Loans, at the LIBOR Rate plus a margin of 1.5% or 1.75% depending on our Leverage Ratio and (2) for Prime Rate Loans, at the bank’s prime rate.

We do not use derivative financial instruments.

ITEM 4.  CONTROLS AND PROCEDURES
 
a)  EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
 
The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that material information required to be disclosed in its filings under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of such date.
   
b)  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal control over financial reporting that occurred during our third quarter of 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 
21

 

PART II.  OTHER INFORMATION

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Share Repurchases

During the third quarter of 2015, we acquired and cancelled shares of common stock surrendered by employees to pay income taxes due upon the vesting of restricted stock as follows:

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
 
July 17, 2015
    832     $ 17.86       N/A       N/A  
August 1, 2015
    648       18.04       N/A       N/A  
Total
    1,480       17.95       N/A       N/A  

ITEM 6.  EXHIBITS

 
10.1
Amendment No. 1 to Amended and Restated Credit Agreement Dated as of July 9, 2015 between NIC Inc., as Borrower, and Bank of America, N.A., as Lender and L/C Issuer (incorporated by reference from Exhibit 10.1 to the Form 8-K filed with the SEC on July 9, 2015)
     
 
10.2
Form of NIC Inc. First Amendment to Key Employee Agreement between the Registrant and Executive, dated July 27, 2015 (incorporated by reference from Exhibit 10.1 to the Form 8-K filed with the SEC on July 28, 2015)
     
 
31.1
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
 
31.2
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
 
32.1
Section 906 Certifications of Chief Executive Officer and Chief Financial Officer
     
 
101
The following financial information from NIC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL (Extensible Business Reporting Language) includes (i) Unaudited Consolidated Balance Sheets at September 30, 2015 and December 31, 2014, (ii) Unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2015 and 2014, (iii) Unaudited Consolidated Statement of Changes in Stockholders’ Equity for the nine months ended September 30, 2015, (iv) Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014, and (v) the Notes to Unaudited Consolidated Financial Statements (submitted electronically herewith).
 
 
22

 
 
SIGNATURES
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
NIC INC.
   
Dated:  November 5, 2015
/s/ Stephen M. Kovzan
 
Stephen M. Kovzan
 
Chief Financial Officer
 
 
 

 

NIC Inc.
EXHIBIT INDEX

Exhibit
Number
 
Description of Exhibit
10.1
 
Amendment No. 1 to Amended and Restated Credit Agreement Dated as of July 9, 2015 between NIC Inc., as Borrower, and Bank of America, N.A., as Lender and L/C Issuer (incorporated by reference from Exhibit 10.1 to the Form 8-K filed with the SEC on July 9, 2015)
     
10.2
 
Form of NIC Inc. First Amendment to Key Employee Agreement between the Registrant and Executive, dated July 27, 2015 (incorporated by reference from Exhibit 10.1 to the Form 8-K filed with the SEC on July 28, 2015)
     
31.1
 
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31.2
 
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1
 
Section 906 Certifications of Chief Executive Officer and Chief Financial Officer
     
101
 
The following financial information from NIC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL (Extensible Business Reporting Language) includes (i) Unaudited Consolidated Balance Sheets at September 30, 2015 and December 31, 2014, (ii) Unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2015 and 2014, (iii) Unaudited Consolidated Statement of Changes in Stockholders’ Equity for the nine months ended September 30, 2015, (iv) Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014, and (v) the Notes to Unaudited Consolidated Financial Statements (submitted electronically herewith).
EX-31 2 a51212169ex31_1.htm EXHIBIT 31.1 a51212169ex31_1.htm
Exhibit 31.1
 
CERTIFICATION

I, Harry Herington, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of NIC Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2015

/s/ Harry Herington
Harry Herington
Chief Executive Officer
EX-31 3 a51212169ex31_2.htm EXHIBIT 31.2 a51212169ex31_2.htm
Exhibit 31.2
 
CERTIFICATION

I, Stephen M. Kovzan, certify that

1. I have reviewed this Quarterly Report on Form 10-Q of NIC Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2015

/s/ Stephen M. Kovzan
Stephen M. Kovzan
Chief Financial Officer
EX-32 4 a51212169ex32_1.htm EXHIBIT 32.1 a51212169ex32_1.htm
Exhibit 32.1
 
Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002

The undersigned Chief Executive Officer and Chief Financial Officer of NIC Inc. (the “Company”) each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2015 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 
Dated: November 5, 2015

/s/ Harry Herington
Harry Herington
Chief Executive Officer

/s/ Stephen M. Kovzan
Stephen M. Kovzan
Chief Financial Officer


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This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">One of the customers who does business with many of the Company&#x2019;s subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in February 2015. 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DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> September 30,</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="6" valign="bottom" width="22%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> September 30,</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr> <td valign="bottom" width="52%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2015</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2014</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2015</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2014</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> </tr> <tr> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Numerator:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12,750</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10,361</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">32,994</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">30,766</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Less: Income allocated to participating securities</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(117</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(94</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(307</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(297</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income available to common stockholders</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12,633</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10,267</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">32,687</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">30,469</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Denominator:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Weighted average shares - basic</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,618</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,288</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,532</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,197</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Performance-based restricted stock awards</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">17</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Weighted average shares - diluted</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,637</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,288</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,549</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,197</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Basic net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.16</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.50</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.47</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="52%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Diluted net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.16</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.50</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; 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MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On July 9, 2015, the Company entered into Amendment No. 1 to Amended and Restated Credit Agreement (the &#x201C;Amendment&#x2019;), which amends the Amended and Restated Credit Agreement, dated as of August 6, 2014, by and between the Company and Bank of America, N.A. (the &#x201C;Credit Agreement&#x201D;). The material amendments to the Credit Agreement made by the Amendment include (a) extending the maturity date to May 1, 2017; and (b) decreasing the margin added to the LIBOR rate for any amounts selected by the Company to be borrowed at the LIBOR rate, and the fees payable on outstanding letters of credit, to either 1.15% (if the Company&#x2019;s consolidated leverage ratio is less than 1.50:1) or 1.25% (if the Company&#x2019;s consolidated leverage ratio is greater than or equal to 1.50:1) of face value per annum.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default. The Amendment also continues to require the Company to maintain compliance with the following financial covenants (in each case, as defined in the Credit Agreement):</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#xA0;</div> <div> <table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td style="WIDTH: 36pt"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman"> &#x25CF;</font></font></div> </td> <td> <div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Consolidated tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the Credit Agreement); and</font></div> </td> </tr> </table> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#xA0;</div> <div> <table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr valign="top"> <td style="WIDTH: 36pt"> <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman"> &#x25CF;</font></font></div> </td> <td> <div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Consolidated maximum leverage ratio of 1.5:1 (the ratio of total funded debt to EBITDA).</font></div> </td> </tr> </table> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Company was in compliance with each of these covenants at September 30, 2015. The Company issues letters of credit as collateral for certain office leases, and to a much lesser extent, as collateral for performance on one of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $1.2 million and $1.4 million, respectively, at September 30, 2015 and December 31, 2014. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.8 million in available capacity to issue additional letters of credit and $8.8 million of unused borrowing capacity at September 30, 2015 under the facility. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50.0 million, subject to securing additional commitments from the bank.</font></div> </div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline"> 3.&#xA0; STOCK BASED COMPENSATION</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">During the three- and nine-month periods ended September 30, 2015, the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 7,276 shares and 269,431 shares, respectively, with a grant-date fair value totaling approximately $0.1 million and $4.6 million, respectively. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. In addition, during the second quarter of 2015, non-employee directors of the Company were granted service-based restricted stock awards totaling 45,619 shares with a grant-date fair value totaling approximately $0.8 million. These non-employee director restricted stock awards vest one year from the date of grant. Restricted stock is valued at the date of grant, based on the closing market price of the Company&#x2019;s common stock, and expensed using the straight-line method over the requisite service period (generally the vesting period of the award). The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">During the first quarter of 2015, the Board of Directors of the Company also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company&#x2019;s executive compensation program totaling 109,705 shares with a grant-date fair value totaling approximately $1.9 million, which represents the maximum number of shares able to be earned by the executive officers at the end of a three-year performance period ending December 31, 2017.&#xA0;</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The actual number of shares earned will be based on the Company&#x2019;s performance related to the following performance criteria over the performance period:</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr valign="top"> <td style="WIDTH: 36pt"> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"><font style="FONT-FAMILY: Times New Roman; DISPLAY: inline"> &#x25CF;</font></font></div> </td> <td> <div align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Operating income growth (three-year compound annual growth rate);</font></div> </td> </tr> </table> </div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify">&#xA0;</div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr valign="top"> <td style="WIDTH: 36pt"> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"><font style="FONT-FAMILY: Times New Roman; DISPLAY: inline"> &#x25CF;</font></font></div> </td> <td> <div align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Total consolidated revenue growth (three-year compound annual growth rate); and</font></div> </td> </tr> </table> </div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr valign="top"> <td style="WIDTH: 36pt"> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"><font style="FONT-FAMILY: Times New Roman; DISPLAY: inline"> &#x25CF;</font></font></div> </td> <td> <div align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Cash flow return on invested capital, excluding income taxes paid (three-year average).</font></div> </td> </tr> </table> </div> <div>&#xA0;</div> </div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">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&#x2019;s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividend declared during the performance period, payable in the form of 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&#x2019;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.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">At December 31, 2014, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on January 30, 2012 ended. Based on the Company&#x2019;s actual financial results from 2012 through 2014, 67,239 of the shares subject to the awards and 4,043 dividend shares were earned and vested on January 30, 2015.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">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 Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The following table presents stock-based compensation expense included in the Company&#x2019;s unaudited consolidated statements of income (in thousands):</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="bottom" width="60%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Three months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Nine months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Cost of portal revenues, exclusive of depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">317</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">430</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,086</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,032</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Cost of software &amp; services revenues, exclusive of depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">32</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">13</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">54</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">39</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Selling &amp; administrative</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,240</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,711</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,245</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">3,497</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Stock-based compensation expense before income taxes</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,589</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,154</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">5,385</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,568</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Income tax benefit</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(573</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(798</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(2,047</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(1,762</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net stock-based compensation expense</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,016</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,356</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">3,338</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,806</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> </div> <div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 6.&#xA0; REPORTABLE SEGMENT AND RELATED INFORMATION</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Outsourced Portals segment is the Company&#x2019;s only reportable segment and generally includes the Company&#x2019;s subsidiaries operating outsourced state and local government portals and the corporate divisions that directly support portal operations. The Other Software &amp; Services category primarily includes the Company&#x2019;s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. Each of the Company&#x2019;s businesses within the Other Software &amp; Services category is an operating segment and has been grouped together to form the Other Software &amp; Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Unallocated corporate-level expenses are reported in the reconciliation of the segment totals to the related consolidated totals as &#x201C;Other Reconciling Items.&#x201D; There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and operating segments.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left">&#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The measure of profitability by which management, including the Company&#x2019;s chief operating decision maker, evaluates the performance of its segments and allocates resources to them is operating income (loss) before income taxes. Segment assets or other segment balance sheet information is not presented to the Company&#x2019;s chief operating decision maker. Accordingly, the Company has not presented information relating to segment assets.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">&#xA0;</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The table below reflects summarized financial information for the Company&#x2019;s reportable and operating segments for the three-month period ended September 30 (in thousands):</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Outsourced</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Portals</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Software &amp; Services</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Reconciling</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Items</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Consolidated</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Total</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">70,123</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4,924</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">75,047</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">44,703</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,365</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,932</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">53,000</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,973</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">15</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">128</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,116</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">23,447</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,544</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(7,060</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">19,931</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="56%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">65,304</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4,223</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">69,527</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses (1)</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">42,529</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,316</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,930</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">50,775</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,201</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">83</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,292</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">20,574</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,899</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(7,013</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">16,460</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left">&#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr valign="top"> <td style="TEXT-ALIGN: center; WIDTH: 36pt"> <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">(1)</font></div> </td> <td> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs &amp; expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs &amp; expenses in Outsourced Portals. See Note 1.</font></div> </td> </tr> </table> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The table below reflects summarized financial information for the Company&#x2019;s reportable and operating segments for the nine-month period ended September 30 (in thousands):</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Outsourced</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Portals</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Software &amp;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Services</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Reconciling</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Items</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Consolidated</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Total</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">207,067</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">14,151</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">221,218</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">136,201</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,975</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">21,100</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">161,276</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,322</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">33</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">357</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,712</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">64,544</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">10,143</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(21,457</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; 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FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">193,595</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12,484</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">206,079</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses (1)</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">125,916</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,595</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">19,661</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">149,172</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,568</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">29</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">222</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,819</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">61,111</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8,860</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(19,883</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">50,088</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <div align="left">&#xA0;</div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr valign="top"> <td style="TEXT-ALIGN: center; WIDTH: 36pt"> <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">(1)</font></div> </td> <td> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs &amp; expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs &amp; expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software &amp; Services. See Note 1.</font></div> </td> </tr> </table> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company&#x2019;s Texas portal contract accounted for approximately 21% of the Company&#x2019;s total consolidated revenues for the three- and nine-month periods ended September 30, 2015 compared to 22% in the corresponding prior year periods. No other state portal contract accounted for more than 10% of the Company&#x2019;s total consolidated revenues.</font></div> </div> --12-31 <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Basis of presentation</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software &amp; services. The portal category generally includes revenues and cost of revenues from the Company&#x2019;s subsidiaries operating outsourced portals on behalf of state and local governments. The software &amp; services category primarily includes revenues and cost of revenues from the Company&#x2019;s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software &amp; services revenues, selling &amp; administrative expenses and depreciation &amp; amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software &amp; services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling &amp; administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company&#x2019;s software &amp; services businesses, including information systems and office rent. Selling &amp; administrative expenses also consist of management incentive compensation, including stock-based compensation, corporate-level expenses for market development and public relations, and gains and losses on disposal of assets.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling &amp; administrative expenses of $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software &amp; services revenues for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows. Certain other income statement amounts for the three- and nine-month periods ended September 30, 2014 have been reclassified to conform to the 2015 presentation.</font></div> </div> Q3 <div style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> Concentration of credit risk</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (&#x201C;FDIC&#x201D;) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At September 30, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $111.9 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.</font></div> </div> <div style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> Earnings per share</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered 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&#x2019;s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered 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 approximately 0.7 million at both September 30, 2015 and 2014. 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&#x2019;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.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#xA0;</div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):</font></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#xA0;</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> <div align="left"> <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom" width="52%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="6" valign="bottom" width="22%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Three months ended</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="6" valign="bottom" width="22%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Nine months ended</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="52%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="6" valign="bottom" width="22%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> September 30,</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="6" valign="bottom" width="22%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> September 30,</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr> <td valign="bottom" width="52%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2015</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2014</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2015</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 2014</font></div> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> &#xA0;</font></td> </tr> <tr> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Numerator:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td colspan="2" valign="bottom" width="10%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12,750</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10,361</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">32,994</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> $</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">30,766</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Less: Income allocated to participating securities</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(117</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(94</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(307</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(297</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income available to common stockholders</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12,633</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10,267</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">32,687</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">30,469</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Denominator:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Weighted average shares - basic</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,618</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,288</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,532</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,197</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Performance-based restricted stock awards</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">17</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Weighted average shares - diluted</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,637</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,288</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,549</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">65,197</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Basic net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; 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FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="52%"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> Diluted net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> &#xA0;</font></td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> <font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Net income</font></div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.19</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.16</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.50</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">0.47</font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#xA0;</font></td> </tr> </table> </div> </div> </div> 65532000 <div style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> Recent accounting pronouncements</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In May 2014, the Financial Accounting Standards Board (&#x201C;FASB&#x201D;) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders&#x2019; equity. Early adoption is permitted for an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company&#x2019;s consolidated financial statements.</font></div> </div> 0.38 700000 <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline"> 1.&#xA0; THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> The Company</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">NIC is a leading provider of eGovernment services that helps governments use the Internet to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software &amp; services businesses.</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In its primary outsourced portal businesses, the Company generally designs, builds, and operates Internet-based portals on an enterprise-wide basis on behalf of state and local governments desiring to provide access to government information and to complete secure government-based transactions through multiple online channels, including mobile devices. These portals consist of websites and applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts (see Note&#xA0;2), NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC&#x2019;s self-funded business model allows the Company to generate revenues by sharing in the fees the Company collects from eGovernment transactions. The Company&#x2019;s government partners benefit through reducing their financial and technology risks, increasing their operational efficiencies, and gaining a centralized, customer-focused presence on the Internet, while businesses and citizens receive a faster, more convenient, and more cost-effective means to interact with governments. The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the outsourced government portals.</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company&#x2019;s software &amp; services businesses primarily include its subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies (see Note 2).</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Basis of presentation</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software &amp; services. The portal category generally includes revenues and cost of revenues from the Company&#x2019;s subsidiaries operating outsourced portals on behalf of state and local governments. The software &amp; services category primarily includes revenues and cost of revenues from the Company&#x2019;s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software &amp; services revenues, selling &amp; administrative expenses and depreciation &amp; amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software &amp; services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling &amp; administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company&#x2019;s software &amp; services businesses, including information systems and office rent. Selling &amp; administrative expenses also consist of management incentive compensation, including stock-based compensation, corporate-level expenses for market development and public relations, and gains and losses on disposal of assets.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling &amp; administrative expenses of $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software &amp; services revenues for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows. Certain other income statement amounts for the three- and nine-month periods ended September 30, 2014 have been reclassified to conform to the 2015 presentation.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Trade accounts receivable</font></div> <div style="TEXT-ALIGN: left; MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> &#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">One of the customers who does business with many of the Company&#x2019;s subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in February 2015. In September 2015, this customer successfully emerged from Chapter 11 proceedings pursuant to a confirmed restructuring plan, and the Company&#x2019;s related accounts receivable were paid in full.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The Company&#x2019;s allowance for doubtful accounts at both September 30, 2015 and December 31, 2014 was $0.5 million.</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> &#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Earnings per share</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered 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&#x2019;s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered 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 approximately 0.7 million at both September 30, 2015 and 2014. 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&#x2019;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.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left">&#xA0;</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="bottom" width="52%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="22%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Three months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="22%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Nine months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="52%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="22%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="22%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="52%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Numerator:</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="10%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="10%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="10%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="10%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">12,750</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">10,361</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">32,994</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">30,766</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Less: Income allocated to participating securities</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(117</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(94</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(307</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(297</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income available to common stockholders</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">12,633</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">10,267</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">32,687</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">30,469</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Denominator:</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Weighted average shares - basic</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,618</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,288</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,532</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,197</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 2px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Performance-based restricted stock awards</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">19</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">17</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Weighted average shares - diluted</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,637</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,288</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,549</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">65,197</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Basic net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.19</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.16</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.50</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.47</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="52%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Diluted net income per share:</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; 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FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 4px; PADDING-LEFT: 0pt; MARGIN-LEFT: 9pt" valign="bottom" width="52%" align="left"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; 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FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.50</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.47</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Concentration of credit risk</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (&#x201C;FDIC&#x201D;) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At September 30, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $111.9 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-STYLE: italic; DISPLAY: inline"> Recent accounting pronouncements</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In May 2014, the Financial Accounting Standards Board (&#x201C;FASB&#x201D;) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders&#x2019; equity. Early adoption is permitted for an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company&#x2019;s consolidated financial statements.</font></div> </div> 36971000 false NIC INC <div style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> 5.&#xA0; INCOME TAXES</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Company&#x2019;s effective tax rate was approximately 36% and 38%, respectively, for the three- and nine-month periods ended September 30, 2015, compared to 37% and 39%, respectively, in the corresponding prior year periods. The Company&#x2019;s effective tax rate in the current quarter and year-to-date periods was lower than the prior year periods mainly due to the recognition of a favorable income tax benefit resulting from the reduction of uncertain tax positions in connection with the expiration of the statute of limitations, the completion of an IRS examination of the Company&#x2019;s 2012 federal tax return and other adjustments related to the filing of the Company&#x2019;s 2014 federal tax return during the third quarter of 2015.</font></div> </div> 1 0.50 2015 <div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 7.&#xA0; SUBSEQUENT EVENT</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; DISPLAY: inline"> Special Cash Dividend</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">On November 2, 2015, the Company&#x2019;s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, which is expected to total approximately $36.5 million based on the current number of shares outstanding, will be paid on January 4, 2016, out of the Company&#x2019;s available cash. In addition, holders of performance-based restricted stock on the record date will accrue dividend equivalents that may be earned and become payable in the form of shares of common stock at the end of the respective performance period to the extent that the underlying shares of restricted stock are earned.</font></div> </div> 65549000 0.50 <div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The table below reflects summarized financial information for the Company&#x2019;s reportable and operating segments for the three-month period ended September 30 (in thousands):</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Outsourced</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Portals</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Software &amp; Services</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Reconciling</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Items</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Consolidated</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Total</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">70,123</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4,924</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">75,047</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">44,703</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,365</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,932</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">53,000</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,973</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">15</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">128</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,116</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">23,447</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,544</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(7,060</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">19,931</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="56%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">65,304</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4,223</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">69,527</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses (1)</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">42,529</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1,316</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,930</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">50,775</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,201</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">83</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,292</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">20,574</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2,899</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(7,013</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">16,460</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left">&#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr valign="top"> <td style="TEXT-ALIGN: center; WIDTH: 36pt"> <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">(1)</font></div> </td> <td> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs &amp; expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs &amp; expenses in Outsourced Portals. See Note 1.</font></div> </td> </tr> </table> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The table below reflects summarized financial information for the Company&#x2019;s reportable and operating segments for the nine-month period ended September 30 (in thousands):</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Outsourced</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Portals</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Software &amp;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Services</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Other</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Reconciling</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Items</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Consolidated</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Total</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="9%" colspan="2"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">207,067</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">14,151</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">221,218</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">136,201</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,975</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">21,100</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">161,276</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,322</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">33</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">357</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,712</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">64,544</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">10,143</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(21,457</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">53,230</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="56%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Revenues</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">193,595</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12,484</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">-</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">206,079</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Costs &amp; expenses (1)</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">125,916</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3,595</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">19,661</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">149,172</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,568</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">29</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">222</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="8%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6,819</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="56%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Operating income (loss) before income taxes</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">61,111</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8,860</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(19,883</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="8%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">50,088</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <div align="left">&#xA0;</div> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr valign="top"> <td style="TEXT-ALIGN: center; WIDTH: 36pt"> <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">(1)</font></div> </td> <td> <div style="MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="justify"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs &amp; expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs &amp; expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software &amp; Services. See Note 1.</font></div> </td> </tr> </table> </div> </div> 17000 <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The following table presents stock-based compensation expense included in the Company&#x2019;s unaudited consolidated statements of income (in thousands):</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"> <div align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="bottom" width="60%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Three months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> Nine months ended</font></div> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="18%" colspan="6"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> September 30,</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2015</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> 2014</font></div> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline"> &#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Cost of portal revenues, exclusive of depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">317</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">430</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,086</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> $</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,032</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Cost of software &amp; services revenues, exclusive of depreciation &amp; amortization</font></div> </td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">32</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">13</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">54</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; 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TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,711</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,245</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">3,497</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; 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FONT-FAMILY: times new roman; DISPLAY: inline">2,154</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">5,385</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline"> &#xA0;</font></td> <td style="TEXT-ALIGN: right" valign="bottom" width="7%"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,568</font></td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Income tax benefit</font></div> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(573</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(798</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; 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TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(1,762</font></td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">)</font></td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="60%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net stock-based compensation expense</font></div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,016</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; 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FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,806</font></td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#xA0;</font></td> </tr> </table> </div> </div> </div> -13000 86000 5385000 1131000 624000 74000 53230000 -26000 221218000 21153000 3257000 -3673000 32994000 2047000 236000 19509000 1367000 6712000 20236000 1131000 -432000 3338000 167988000 1645000 34460000 -3708000 3000 13833000 236000 5385000 307000 31933000 -847000 -3878000 475000 32687000 3976000 0.31 P1Y <div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold; DISPLAY: inline"> 2.&#xA0; OUTSOURCED GOVERNMENT CONTRACTS</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; DISPLAY: inline"> Outsourced portal contracts</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company&#x2019;s outsourced government portal contracts generally have an initial multi-year term with provisions for renewals for various periods at the option of the government. The Company&#x2019;s primary business obligation under these contracts is generally to design, build, and operate Internet-based portals on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to complete government-based transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the electronic 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. Any changes made to the amount or percentage of fees retained by NIC, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract to NIC.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the government portals, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that the Company has developed and standardized centrally and that are utilized by the Company&#x2019;s portal businesses, are being provided to a number of government partners on a software-as-a-service, or &#x201C;SaaS,&#x201D; basis, and thus would not be included in any royalty-free license. If the Company&#x2019;s contract was not renewed after a defined term or if its contract was terminated by a government partner for cause, the government agency would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for services provided by the Company on a SaaS basis, which would be available to the partner on a fee-for-service basis.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">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, 17 contracts under which the Company provides services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented 64% and 63%, respectively, of the Company&#x2019;s total consolidated revenues for the three- and nine-month periods ended September 30, 2015. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay a fee to the Company in order to continue to use the Company&#x2019;s software in its portal. In addition, the loss of one or more of the Company&#x2019;s larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Kentucky, New Jersey, Pennsylvania, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce the Company&#x2019;s revenues and profitability. See the discussion below under &#x201C;Expiring Contracts&#x201D; regarding the expiration of the Company&#x2019;s contracts with the states of Arizona and Delaware.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">Under a typical portal contract, the Company is required to fully indemnify its government clients against claims that the Company&#x2019;s services infringe upon the intellectual property rights of others and against claims arising from the Company&#x2019;s performance or the performance of the Company&#x2019;s subcontractors under the contract. The Company has never had any defaults resulting in draws on performance bonds. At September 30, 2015, the Company was bound by performance bond commitments totaling approximately $6.6 million on certain outsourced portal contracts.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of September 30, 2015:</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="30%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">NIC Portal Entity</font></font></div> </td> <td valign="top" width="34%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Portal Website (State)</font></font></div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Year Services</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Commenced</font></font></div> </td> <td valign="top" width="22%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Contract Expiration Date</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">(Renewal Options Through)</font></font></div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Connecticut Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.ct.gov (Connecticut)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2014</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1/9/2017 (1/9/2020)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Wisconsin Interactive Network, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.wisconsin.gov (Wisconsin)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2013</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">5/13/2018 (5/13/2023)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Pennsylvania Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.pa.gov (Pennsylvania)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2012</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">11/30/2017 (11/30/2022)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, OR Division</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.oregon.gov (Oregon)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">11/22/2021</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, MD Division&#xA0;</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.maryland.gov (Maryland)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/10/2017 (8/10/2019)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Mississippi Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.ms.gov (Mississippi)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12/31/2015 (12/31/2021)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">New Jersey Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.nj.gov (New Jersey)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2009</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">5/1/2020 (5/1/2022)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Texas NICUSA, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Texas.gov (Texas)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2009</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/31/2018</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">West Virginia Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.WV.gov (West Virginia)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2007</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2016</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Vermont Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Vermont.gov (Vermont)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2006</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/8/2016 (6/8/2019)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Colorado Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Colorado.gov (Colorado)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2005</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4/30/2019 (4/30/2023)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">South Carolina Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.SC.gov (South Carolina)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2005</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/15/2019 (7/15/2021)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Kentucky Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Kentucky.gov (Kentucky)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2003</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/31/2016</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Alabama Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Alabama.gov (Alabama)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2002</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/1/2016 (3/1/2017)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Rhode Island Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.RI.gov (Rhode Island)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/1/2017 (7/1/2019)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Oklahoma Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.OK.gov (Oklahoma)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2016 (3/31/2020)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Montana Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.MT.gov (Montana)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12/31/2017 (12/31/2020)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, TN Division</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.TN.gov (Tennessee)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2017</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Hawaii Information Consortium, LLC</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.eHawaii.gov (Hawaii)</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1/3/2016</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(3-year renewal options)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Idaho Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Idaho.gov (Idaho)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/30/2017</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Utah Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Utah.gov (Utah)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1999</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/5/2019</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Maine Information Network, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Maine.gov (Maine)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1999</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/1/2018</font></div> </div> </td> </tr> </table> <div>&#xA0;</div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%" align="left"> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">NIC Portal Entity</font></font></div> </td> <td valign="top" width="34%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Portal Website (State)</font></font></div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Year Services</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Commenced</font></font></div> </td> <td valign="top" width="22%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Contract Expiration Date</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">(Renewal Options Through)</font></font></div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Arkansas Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Arkansas.gov (Arkansas)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1997</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/30/2018</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Iowa Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Iowa.gov (Iowa)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1997</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/30/2016 (6/30/2020)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Indiana Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.IN.gov (Indiana)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1995</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/31/2016</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Nebraska Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Nebraska.gov (Nebraska)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1995</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1/31/2016</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Kansas Information Consortium, LLC</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Kansas.gov (Kansas)</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1992</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12/31/2021</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(annual 1-year renewal options)</font></div> </div> </td> </tr> </table> </div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the first quarter of 2015, the Company received two-year contract extensions from the states of Montana and Idaho. In addition, the Company executed one-year contract extensions with the states of Alabama and Tennessee.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>During the second quarter of 2015, the Company signed a new one-year contract with the state of Oklahoma, which includes four one-year renewal options for the government to extend the contract. In addition, the Company was awarded a new five-year contract with the state of New Jersey, which includes two one-year renewal options for the government to extend the contract. The Company also executed a three-year contract extension with the state of Utah.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the third quarter of 2015, the Company executed one-year contract extensions with the Commonwealth of Kentucky and the state of Maryland.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the fourth quarter of 2015, the Company executed a two-year contract extension with the state of Maine and a one-year contract extension with the state of Texas.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; DISPLAY: inline"> Other outsourced state contracts</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the third quarter of 2014, the Company&#x2019;s subsidiary, Louisiana Interactive, LLC, signed a master contract with the state of Louisiana Division of Administration, Office of Technology Services (&#x201C;Louisiana Division&#x201D;) that creates a framework to provide certain eGovernment services for a pilot period. The pilot period commenced during the first quarter of 2015 and the Company anticipates it will conclude in approximately 12-18 months after the commencement of the pilot period. Subsequent to the pilot period, the Louisiana Division has the option to receive enterprise-wide eGovernment services pursuant to the master contract.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company&#x2019;s subsidiary, New Mexico Interactive, LLC, has a contract to manage eGovernment services for the New Mexico Motor Vehicle Division (&#x201C;MVD&#x201D;) and its parent, the New Mexico Taxation and Revenue Department.&#xA0;The current contract runs through June 30, 2016 and includes a renewal option for the government to extend the contract for two additional one-year periods.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the third quarter of 2015, the Company&#x2019;s subsidiary, Virginia Interactive, LLC (&#x201C;VI&#x201D;), extended its agreement with the Virginia Department of Game and Inland Fisheries to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for one additional one-year period. During the third quarter of 2015, VI extended its agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for seven additional one-year periods.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; DISPLAY: inline"> Outsourced federal contracts</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The Company&#x2019;s subsidiary, NIC Federal, LLC (&#x201C;NIC Federal&#x201D;, formerly NIC Technologies, LLC) has a contract with the Federal Motor Carrier Safety Administration (&#x201C;FMCSA&#x201D;) to develop and manage the FMCSA&#x2019;s Pre-Employment Screening Program (&#x201C;PSP&#x201D;) for motor carriers nationwide, using the self-funded, transaction-based business model. During the third quarter of 2015, the Company signed a new one-year contract with the FMCSA that runs through August 31, 2016, which includes two one-year renewal options for the agency to extend the contract.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">Any renewal of the contract with the FMCSA beyond the current term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce the Company&#x2019;s revenues and profitability. In addition, the Company has limited control over the level of fees it is permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by the Company, or to the amounts charged for the services offered, could materially affect the profitability of this contract.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; FONT-STYLE: italic; DISPLAY: inline"> Expiring contracts</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">As of September 30, 2015, there were 14 contracts under which the Company provides services that have expiration dates within the 12-month period following September 30, 2015. Collectively, revenues generated from these contracts represented 31% of the Company&#x2019;s total consolidated revenues for each of the three- and nine-month periods ended September 30, 2015. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for the services the Company provides on a SaaS basis, which would be available to the government agency on a fee-for-service basis.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">During the first quarter of 2013, the Company&#x2019;s subsidiary, NICUSA, Inc. (&#x201C;NICUSA&#x201D;), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. NICUSA provided transition services as required by the contract through the March 26, 2014 final expiration date of the contract. The costs incurred in transitioning out of NICUSA&#x2019;s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company&#x2019;s consolidated results of operations, cash flows, or financial condition. For the nine-month period ended September 30, 2014, revenues from the legacy Arizona portal contract were approximately $0.8 million.</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> <br /></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The contract under which the Company&#x2019;s subsidiary, Delaware Interactive, LLC (&#x201C;DI&#x201D;), managed the state of Delaware&#x2019;s official government portal expired on March 31, 2015. The primary revenue source for DI under the contract was an annual portal management fee paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it did not intend to renew its contract with DI when the contract term expired. The costs incurred in transitioning out of DI&#x2019;s contract with the state of Delaware, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company&#x2019;s consolidated results of operations, cash flows, or financial condition. For the nine-month periods ended September 30, 2015 and 2014, revenues from the Delaware portal contract were approximately $0.6 million and $1.8 million, respectively. For the three-month period ended September 30, 2014, revenues from the Delaware portal contract were approximately $0.6 million.</font></div> </div> <div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 36pt; -webkit-text-stroke-width: 0px" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; DISPLAY: inline">The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of September 30, 2015:</font></div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); TEXT-ALIGN: left; FONT: 13px 'Times New Roman'; MARGIN-LEFT: 0pt; WIDOWS: 1; DISPLAY: block; LETTER-SPACING: normal; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; -webkit-text-stroke-width: 0px"> &#xA0;</div> <div style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 13px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" align="left"> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="30%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">NIC Portal Entity</font></font></div> </td> <td valign="top" width="34%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Portal Website (State)</font></font></div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Year Services</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Commenced</font></font></div> </td> <td valign="top" width="22%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Contract Expiration Date</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">(Renewal Options Through)</font></font></div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Connecticut Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.ct.gov (Connecticut)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2014</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1/9/2017 (1/9/2020)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Wisconsin Interactive Network, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.wisconsin.gov (Wisconsin)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2013</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">5/13/2018 (5/13/2023)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Pennsylvania Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.pa.gov (Pennsylvania)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2012</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">11/30/2017 (11/30/2022)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, OR Division</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.oregon.gov (Oregon)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">11/22/2021</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, MD Division&#xA0;</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.maryland.gov (Maryland)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/10/2017 (8/10/2019)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Mississippi Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.ms.gov (Mississippi)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2011</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12/31/2015 (12/31/2021)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">New Jersey Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.nj.gov (New Jersey)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2009</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">5/1/2020 (5/1/2022)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Texas NICUSA, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Texas.gov (Texas)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2009</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/31/2018</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">West Virginia Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.WV.gov (West Virginia)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2007</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2016</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Vermont Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Vermont.gov (Vermont)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2006</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/8/2016 (6/8/2019)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Colorado Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Colorado.gov (Colorado)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2005</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">4/30/2019 (4/30/2023)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">South Carolina Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.SC.gov (South Carolina)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2005</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/15/2019 (7/15/2021)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Kentucky Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Kentucky.gov (Kentucky)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2003</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">8/31/2016</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Alabama Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Alabama.gov (Alabama)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2002</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/1/2016 (3/1/2017)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Rhode Island Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.RI.gov (Rhode Island)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/1/2017 (7/1/2019)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Oklahoma Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.OK.gov (Oklahoma)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2016 (3/31/2020)</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Montana Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.MT.gov (Montana)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2001</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">12/31/2017 (12/31/2020)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">NICUSA, TN Division</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.TN.gov (Tennessee)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">3/31/2017</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Hawaii Information Consortium, LLC</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.eHawaii.gov (Hawaii)</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1/3/2016</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">(3-year renewal options)</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Idaho Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Idaho.gov (Idaho)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">2000</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/30/2017</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Utah Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Utah.gov (Utah)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1999</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/5/2019</font></div> </div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Maine Information Network, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Maine.gov (Maine)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1999</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">7/1/2018</font></div> </div> </td> </tr> </table> <div>&#xA0;</div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'" cellspacing="0" cellpadding="0" width="100%"> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%" align="left"> <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#xA0;</div> <div style="MARGIN-LEFT: 18pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -18pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">NIC Portal Entity</font></font></div> </td> <td valign="top" width="34%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">&#xA0;</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Portal Website (State)</font></font></div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Year Services</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">Commenced</font></font></div> </td> <td valign="top" width="22%" align="left"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; DISPLAY: inline"> Contract Expiration Date</font></div> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; FONT-WEIGHT: bold; TEXT-DECORATION: underline; DISPLAY: inline"> <font style="DISPLAY: inline">(Renewal Options Through)</font></font></div> </td> </tr> <tr bgcolor="white"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Arkansas Information Consortium, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Arkansas.gov (Arkansas)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1997</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">6/30/2018</font></div> </div> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top" width="30%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">Iowa Interactive, LLC</font></div> </div> </td> <td valign="top" width="34%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">www.Iowa.gov (Iowa)</font></div> </div> </td> <td valign="top" width="14%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'times new roman'; DISPLAY: inline">1997</font></div> </div> </td> <td valign="top" width="22%"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; 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Debt Obligations and Collateral Requirements - Additional Information (Detail) - USD ($)
$ in Millions
9 Months Ended
Jul. 09, 2015
Sep. 30, 2015
Dec. 31, 2014
Debt Instrument [Line Items]      
Debt instrument, covenant compliance   The Company was in compliance with each of these covenants at September 30, 2015.  
Letters of credit, maximum effective in force period   1 year  
Unsecured Credit Agreement | Covenant Requirement      
Debt Instrument [Line Items]      
Consolidated leverage ratio 150.00%    
Consolidated tangible net worth required $ 36.0    
Unsecured Credit Agreement | Revolving Credit Facility      
Debt Instrument [Line Items]      
Credit facility, amended expiration date May 01, 2017    
Credit facility, outstanding letters of credit   $ 1.2 $ 1.4
Credit facility, available capacity to issue additional letters of credit   3.8  
Credit facility, available borrowing capacity   8.8  
Credit facility, increase available capacity under the credit agreement   $ 50.0  
Unsecured Credit Agreement | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is less than or equal to 1.25:1      
Debt Instrument [Line Items]      
Fees on outstanding letters of credit 1.15%    
Consolidated leverage ratio 150.00%    
Unsecured Credit Agreement | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is greater than 1.25:1      
Debt Instrument [Line Items]      
Fees on outstanding letters of credit 1.25%    
Consolidated leverage ratio 150.00%    

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XML 17 R29.htm IDEA: XBRL DOCUMENT v3.3.0.814
Summary of Financial Information for Reportable Segments (Parenthetical) (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]        
Costs & expenses $ 53,000 $ 50,775 [1] $ 161,276 $ 149,172 [2]
Other Reconciling Items        
Segment Reporting Information [Line Items]        
Costs & expenses 6,932 6,930 [1] 21,100 19,661 [2]
Reclassification Adjustment | Other Reconciling Items        
Segment Reporting Information [Line Items]        
Costs & expenses   (1,000)   (3,200)
Outsourced Portals | Total segment operating income        
Segment Reporting Information [Line Items]        
Costs & expenses 44,703 42,529 [1] 136,201 125,916 [2]
Outsourced Portals | Reclassification Adjustment | Total segment operating income        
Segment Reporting Information [Line Items]        
Increase in costs & expenses       3,100
Other Software & Services | Total segment operating income        
Segment Reporting Information [Line Items]        
Costs & expenses $ 1,365 $ 1,316 [1] $ 3,975 3,595 [2]
Other Software & Services | Reclassification Adjustment | Total segment operating income        
Segment Reporting Information [Line Items]        
Increase in costs & expenses       $ 100
[1] The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs & expenses in Outsourced Portals. See Note 1.
[2] The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs & expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software & Services. See Note 1.
XML 18 R28.htm IDEA: XBRL DOCUMENT v3.3.0.814
Summary of Financial Information for Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]        
Revenues $ 75,047 $ 69,527 $ 221,218 $ 206,079
Costs & expenses 53,000 50,775 [1] 161,276 149,172 [2]
Depreciation & amortization 2,116 2,292 6,712 6,819
Operating income (loss) before income taxes 19,931 16,460 53,230 50,088
Total segment operating income | Outsourced Portals        
Segment Reporting Information [Line Items]        
Revenues 70,123 65,304 207,067 193,595
Costs & expenses 44,703 42,529 [1] 136,201 125,916 [2]
Depreciation & amortization 1,973 2,201 6,322 6,568
Operating income (loss) before income taxes 23,447 20,574 64,544 61,111
Total segment operating income | Other Software & Services        
Segment Reporting Information [Line Items]        
Revenues 4,924 4,223 14,151 12,484
Costs & expenses 1,365 1,316 [1] 3,975 3,595 [2]
Depreciation & amortization 15 8 33 29
Operating income (loss) before income taxes 3,544 2,899 10,143 8,860
Other Reconciling Items        
Segment Reporting Information [Line Items]        
Costs & expenses 6,932 6,930 [1] 21,100 19,661 [2]
Depreciation & amortization 128 83 357 222
Operating income (loss) before income taxes $ (7,060) $ (7,013) $ (21,457) $ (19,883)
[1] The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs & expenses in Outsourced Portals. See Note 1.
[2] The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs & expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software & Services. See Note 1.
XML 19 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
Subsequent Event - Additional Information (Detail) - Subsequent Event - Dividend Declared
$ / shares in Units, $ in Millions
Nov. 02, 2015
USD ($)
$ / shares
Subsequent Event [Line Items]  
Special cash dividend declared, date Nov. 02, 2015
Special cash dividend declared per share $ 0.55
Special cash dividend record, date Nov. 13, 2015
Special cash dividend paid | $ $ 36.5
Special cash dividend paid, date Jan. 04, 2016
XML 20 R8.htm IDEA: XBRL DOCUMENT v3.3.0.814
OUTSOURCED GOVERNMENT CONTRACTS
9 Months Ended
Sep. 30, 2015
OUTSOURCED GOVERNMENT CONTRACTS
2.  OUTSOURCED GOVERNMENT CONTRACTS

Outsourced portal contracts

The Company’s outsourced government portal 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 Internet-based portals on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to complete government-based transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the electronic 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. Any changes made to the amount or percentage of fees retained by NIC, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract to NIC.
 
The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the government portals, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that the Company has developed and standardized centrally and that are utilized by the Company’s portal businesses, are being provided to a number of government partners on a software-as-a-service, or “SaaS,” basis, and thus would not be included in any royalty-free license. If the Company’s contract was not renewed after a defined term or if its contract was terminated by a government partner for cause, the government agency would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for services provided by the Company on a SaaS basis, which would be available to the partner on a fee-for-service basis.

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, 17 contracts under which the Company provides services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented 64% and 63%, respectively, of the Company’s total consolidated revenues for the three- and nine-month periods ended September 30, 2015. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay a fee to the Company in order to continue to use the Company’s software in its portal. In addition, the loss of one or more of the Company’s larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Kentucky, New Jersey, Pennsylvania, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce the Company’s revenues and profitability. See the discussion below under “Expiring Contracts” regarding the expiration of the Company’s contracts with the states of Arizona and Delaware.

Under a typical portal contract, the Company is required to fully indemnify its government clients 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. The Company has never had any defaults resulting in draws on performance bonds. At September 30, 2015, the Company was bound by performance bond commitments totaling approximately $6.6 million on certain outsourced portal contracts.

The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of September 30, 2015:
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Connecticut Interactive, LLC
www.ct.gov (Connecticut)
2014
1/9/2017 (1/9/2020)
Wisconsin Interactive Network, LLC
www.wisconsin.gov (Wisconsin)
2013
5/13/2018 (5/13/2023)
Pennsylvania Interactive, LLC
www.pa.gov (Pennsylvania)
2012
11/30/2017 (11/30/2022)
NICUSA, OR Division
www.oregon.gov (Oregon)
2011
11/22/2021
NICUSA, MD Division 
www.maryland.gov (Maryland)
2011
8/10/2017 (8/10/2019)
Mississippi Interactive, LLC
www.ms.gov (Mississippi)
2011
12/31/2015 (12/31/2021)
New Jersey Interactive, LLC
www.nj.gov (New Jersey)
2009
5/1/2020 (5/1/2022)
Texas NICUSA, LLC
www.Texas.gov (Texas)
2009
8/31/2018
West Virginia Interactive, LLC
www.WV.gov (West Virginia)
2007
3/31/2016
Vermont Information Consortium, LLC
www.Vermont.gov (Vermont)
2006
6/8/2016 (6/8/2019)
Colorado Interactive, LLC
www.Colorado.gov (Colorado)
2005
4/30/2019 (4/30/2023)
South Carolina Interactive, LLC
www.SC.gov (South Carolina)
2005
7/15/2019 (7/15/2021)
Kentucky Interactive, LLC
www.Kentucky.gov (Kentucky)
2003
8/31/2016
Alabama Interactive, LLC
www.Alabama.gov (Alabama)
2002
3/1/2016 (3/1/2017)
Rhode Island Interactive, LLC
www.RI.gov (Rhode Island)
2001
7/1/2017 (7/1/2019)
Oklahoma Interactive, LLC
www.OK.gov (Oklahoma)
2001
3/31/2016 (3/31/2020)
Montana Interactive, LLC
www.MT.gov (Montana)
2001
12/31/2017 (12/31/2020)
NICUSA, TN Division
www.TN.gov (Tennessee)
2000
3/31/2017
Hawaii Information Consortium, LLC
 
www.eHawaii.gov (Hawaii)
 
2000
 
1/3/2016
(3-year renewal options)
Idaho Information Consortium, LLC
www.Idaho.gov (Idaho)
2000
6/30/2017
Utah Interactive, LLC
www.Utah.gov (Utah)
1999
6/5/2019
Maine Information Network, LLC
www.Maine.gov (Maine)
1999
7/1/2018
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Arkansas Information Consortium, LLC
www.Arkansas.gov (Arkansas)
1997
6/30/2018
Iowa Interactive, LLC
www.Iowa.gov (Iowa)
1997
6/30/2016 (6/30/2020)
Indiana Interactive, LLC
www.IN.gov (Indiana)
1995
7/31/2016
Nebraska Interactive, LLC
www.Nebraska.gov (Nebraska)
1995
1/31/2016
Kansas Information Consortium, LLC
 
www.Kansas.gov (Kansas)
 
1992
 
12/31/2021
(annual 1-year renewal options)
 
During the first quarter of 2015, the Company received two-year contract extensions from the states of Montana and Idaho. In addition, the Company executed one-year contract extensions with the states of Alabama and Tennessee.

During the second quarter of 2015, the Company signed a new one-year contract with the state of Oklahoma, which includes four one-year renewal options for the government to extend the contract. In addition, the Company was awarded a new five-year contract with the state of New Jersey, which includes two one-year renewal options for the government to extend the contract. The Company also executed a three-year contract extension with the state of Utah.

During the third quarter of 2015, the Company executed one-year contract extensions with the Commonwealth of Kentucky and the state of Maryland.

During the fourth quarter of 2015, the Company executed a two-year contract extension with the state of Maine and a one-year contract extension with the state of Texas.

Other outsourced state contracts
 
During the third quarter of 2014, the Company’s subsidiary, Louisiana Interactive, LLC, signed a master contract with the state of Louisiana Division of Administration, Office of Technology Services (“Louisiana Division”) that creates a framework to provide certain eGovernment services for a pilot period. The pilot period commenced during the first quarter of 2015 and the Company anticipates it will conclude in approximately 12-18 months after the commencement of the pilot period. Subsequent to the pilot period, the Louisiana Division has the option to receive enterprise-wide eGovernment services pursuant to the master contract.

The Company’s subsidiary, New Mexico Interactive, LLC, has a contract to manage eGovernment services for the New Mexico Motor Vehicle Division (“MVD”) and its parent, the New Mexico Taxation and Revenue Department. The current contract runs through June 30, 2016 and includes a renewal option for the government to extend the contract for two additional one-year periods.

During the third quarter of 2015, the Company’s subsidiary, Virginia Interactive, LLC (“VI”), extended its agreement with the Virginia Department of Game and Inland Fisheries to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for one additional one-year period. During the third quarter of 2015, VI extended its agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide eGovernment services through August 31, 2016. The agreement includes an option for the government agency to extend the contract for seven additional one-year periods.

Outsourced federal contracts

The Company’s subsidiary, NIC Federal, LLC (“NIC Federal”, formerly NIC Technologies, LLC) has a contract with the Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using the self-funded, transaction-based business model. During the third quarter of 2015, the Company signed a new one-year contract with the FMCSA that runs through August 31, 2016, which includes two one-year renewal options for the agency to extend the contract.
 
Any renewal of the contract with the FMCSA beyond the current term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce the Company’s revenues and profitability. In addition, the Company has limited control over the level of fees it is permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by the Company, or to the amounts charged for the services offered, could materially affect the profitability of this contract.
 
Expiring contracts

As of September 30, 2015, there were 14 contracts under which the Company provides services that have expiration dates within the 12-month period following September 30, 2015. Collectively, revenues generated from these contracts represented 31% of the Company’s total consolidated revenues for each of the three- and nine-month periods ended September 30, 2015. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place with no future obligation of the Company, except as otherwise provided in the contract and except for the services the Company provides on a SaaS basis, which would be available to the government agency on a fee-for-service basis.
 
During the first quarter of 2013, the Company’s subsidiary, NICUSA, Inc. (“NICUSA”), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. NICUSA provided transition services as required by the contract through the March 26, 2014 final expiration date of the contract. The costs incurred in transitioning out of NICUSA’s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the nine-month period ended September 30, 2014, revenues from the legacy Arizona portal contract were approximately $0.8 million.

The contract under which the Company’s subsidiary, Delaware Interactive, LLC (“DI”), managed the state of Delaware’s official government portal expired on March 31, 2015. The primary revenue source for DI under the contract was an annual portal management fee paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it did not intend to renew its contract with DI when the contract term expired. The costs incurred in transitioning out of DI’s contract with the state of Delaware, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the nine-month periods ended September 30, 2015 and 2014, revenues from the Delaware portal contract were approximately $0.6 million and $1.8 million, respectively. For the three-month period ended September 30, 2014, revenues from the Delaware portal contract were approximately $0.6 million.
XML 21 R2.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 122,443 $ 87,983
Trade accounts receivable, net (Note 1) 78,621 57,468
Deferred income taxes, net 1,046 1,039
Prepaid expenses & other current assets 9,710 11,502
Total current assets 211,820 157,992
Property and equipment, net 9,693 12,247
Intangible assets, net 2,174 2,394
Deferred income taxes, net 284  
Other assets 433 446
Total assets 224,404 173,079
Current liabilities:    
Accounts payable 55,235 41,402
Accrued expenses 20,635 19,751
Other current liabilities 2,470 2,902
Total current liabilities 78,340 64,055
Deferred income taxes, net   1,536
Other long-term liabilities 3,825 3,350
Total liabilities $ 82,165 $ 68,941
Commitments and contingencies (Notes 1 and 2)
Stockholders' equity:    
Common stock, $0.0001 par, 200,000 shares authorized, 65,618 and 65,303 shares issued and outstanding $ 7 $ 7
Additional paid-in capital 99,740 94,690
Retained earnings 42,492 9,441
Total stockholders' equity 142,239 104,138
Total liabilities and stockholders' equity $ 224,404 $ 173,079
XML 22 R6.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net income $ 32,994 $ 30,766
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation & amortization 6,712 6,819
Stock-based compensation expense 5,385 4,568
Deferred income taxes (3,708) (2,463)
Loss on disposal of property and equipment 26 147
Changes in operating assets and liabilities:    
(Increase) in trade accounts receivable, net (21,153) (9,080)
Decrease in prepaid expenses & other current assets 3,673 2,296
(Increase) decrease in other assets 13 (62)
Increase in accounts payable 13,833 2,402
(Decrease) in accrued expenses (847) (3,802)
Increase (decrease) in other current liabilities (432) 2,404
Increase in other long-term liabilities 475 602
Net cash provided by operating activities 36,971 34,597
Cash flows from investing activities:    
Purchases of property and equipment (3,257) (3,988)
Proceeds from sale of property and equipment 3  
Capitalized internal use software development costs (624) (1,071)
Net cash used in investing activities (3,878) (5,059)
Cash flows from financing activities:    
Proceeds from employee common stock purchases 1,131 1,107
Tax deductions related to stock-based compensation 236 1,065
Net cash provided by financing activities 1,367 2,172
Net increase in cash 34,460 31,710
Cash, beginning of period 87,983 74,245
Cash, end of period 122,443 105,955
Non-cash investing activities:    
Capital expenditures accrued but not yet paid 86 75
Cash payments:    
Income taxes paid $ 19,509 20,664
Cash dividends on common stock previously restricted for payment of dividend   $ 22,982
XML 23 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies (Detail)
9 Months Ended
Sep. 30, 2015
Connecticut Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.ct.gov (Connecticut)
Year Service Commenced 2014
Contract Expiration Date Jan. 09, 2017
Connecticut Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Jan. 09, 2020
Wisconsin Interactive Network, LLC  
Contracts [Line Items]  
Portal Website (State) www.wisconsin.gov (Wisconsin)
Year Service Commenced 2013
Contract Expiration Date May 13, 2018
Wisconsin Interactive Network, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date May 13, 2023
Pennsylvania Interactive LLC  
Contracts [Line Items]  
Portal Website (State) www.pa.gov (Pennsylvania)
Year Service Commenced 2012
Contract Expiration Date Nov. 30, 2017
Pennsylvania Interactive LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Nov. 30, 2022
NICUSA, OR Division  
Contracts [Line Items]  
Portal Website (State) www.oregon.gov (Oregon)
Year Service Commenced 2011
Contract Expiration Date Nov. 22, 2021
NICUSA, MD Division  
Contracts [Line Items]  
Portal Website (State) www.maryland.gov (Maryland)
Year Service Commenced 2011
Contract Expiration Date Aug. 10, 2017
NICUSA, MD Division | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Aug. 10, 2019
Mississippi Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.ms.gov (Mississippi)
Year Service Commenced 2011
Contract Expiration Date Dec. 31, 2015
Mississippi Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Dec. 31, 2021
New Jersey Interactive LLC  
Contracts [Line Items]  
Portal Website (State) www.nj.gov (New Jersey)
Year Service Commenced 2009
Contract Expiration Date May 01, 2020
New Jersey Interactive LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date May 01, 2022
Texas NICUSA, LLC  
Contracts [Line Items]  
Portal Website (State) www.Texas.gov (Texas)
Year Service Commenced 2009
Contract Expiration Date Aug. 31, 2018
West Virginia Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.WV.gov (West Virginia)
Year Service Commenced 2007
Contract Expiration Date Mar. 31, 2016
Vermont Information Consortium, LLC  
Contracts [Line Items]  
Portal Website (State) www.Vermont.gov (Vermont)
Year Service Commenced 2006
Contract Expiration Date Jun. 08, 2016
Vermont Information Consortium, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Jun. 08, 2019
Colorado Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Colorado.gov (Colorado)
Year Service Commenced 2005
Contract Expiration Date Apr. 30, 2019
Colorado Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Apr. 30, 2023
South Carolina Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.SC.gov (South Carolina)
Year Service Commenced 2005
Contract Expiration Date Jul. 15, 2019
South Carolina Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Jul. 15, 2021
Kentucky Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Kentucky.gov (Kentucky)
Year Service Commenced 2003
Contract Expiration Date Aug. 31, 2016
Alabama Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Alabama.gov (Alabama)
Year Service Commenced 2002
Contract Expiration Date Mar. 01, 2016
Alabama Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Mar. 01, 2017
Rhode Island Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.RI.gov (Rhode Island)
Year Service Commenced 2001
Contract Expiration Date Jul. 01, 2017
Rhode Island Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Jul. 01, 2019
Oklahoma Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.OK.gov (Oklahoma)
Year Service Commenced 2001
Contract Expiration Date Mar. 31, 2016
Oklahoma Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Mar. 31, 2020
Montana Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.MT.gov (Montana)
Year Service Commenced 2001
Contract Expiration Date Dec. 31, 2017
Montana Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Dec. 31, 2020
NICUSA, TN Division  
Contracts [Line Items]  
Portal Website (State) www.TN.gov (Tennessee)
Year Service Commenced 2000
Contract Expiration Date Mar. 31, 2017
Hawaii Information Consortium, LLC  
Contracts [Line Items]  
Portal Website (State) www.eHawaii.gov (Hawaii)
Year Service Commenced 2000
Contract Expiration Date Jan. 03, 2016
Hawaii Information Consortium, LLC | Renewal Term  
Contracts [Line Items]  
Term of contract 3-year renewal options
Idaho Information Consortium, LLC  
Contracts [Line Items]  
Portal Website (State) www.Idaho.gov (Idaho)
Year Service Commenced 2000
Contract Expiration Date Jun. 30, 2017
Utah Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Utah.gov (Utah)
Year Service Commenced 1999
Contract Expiration Date Jun. 05, 2019
Maine Information Network, LLC  
Contracts [Line Items]  
Portal Website (State) www.Maine.gov (Maine)
Year Service Commenced 1999
Contract Expiration Date Jul. 01, 2018
Arkansas Information Consortium, LLC  
Contracts [Line Items]  
Portal Website (State) www.Arkansas.gov (Arkansas)
Year Service Commenced 1997
Contract Expiration Date Jun. 30, 2018
Iowa Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Iowa.gov (Iowa)
Year Service Commenced 1997
Contract Expiration Date Jun. 30, 2016
Iowa Interactive, LLC | Renewal Term  
Contracts [Line Items]  
Contract Expiration Date Jun. 30, 2020
Indiana Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.IN.gov (Indiana)
Year Service Commenced 1995
Contract Expiration Date Jul. 31, 2016
Nebraska Interactive, LLC  
Contracts [Line Items]  
Portal Website (State) www.Nebraska.gov (Nebraska)
Year Service Commenced 1995
Contract Expiration Date Jan. 31, 2016
Kansas Information Consortium, LLC  
Contracts [Line Items]  
Portal Website (State) www.Kansas.gov (Kansas)
Year Service Commenced 1992
Contract Expiration Date Dec. 31, 2021
Kansas Information Consortium, LLC | Renewal Term  
Contracts [Line Items]  
Term of contract annual 1-year renewal options
XML 24 R24.htm IDEA: XBRL DOCUMENT v3.3.0.814
Stock Based Compensation Expenses (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock-based compensation expense before income taxes $ 1,589 $ 2,154 $ 5,385 $ 4,568
Income tax benefit (573) (798) (2,047) (1,762)
Net stock-based compensation expense 1,016 1,356 3,338 2,806
Cost of portal revenues, exclusive of depreciation & amortization        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock-based compensation expense before income taxes 317 430 1,086 1,032
Cost of software & services revenues, exclusive of depreciation & amortization        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock-based compensation expense before income taxes 32 13 54 39
Selling & administrative        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Stock-based compensation expense before income taxes $ 1,240 $ 1,711 $ 4,245 $ 3,497
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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2015
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.  THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

NIC is a leading provider of eGovernment services that helps governments use the Internet to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software & services businesses.
 
In its primary outsourced portal businesses, the Company generally designs, builds, and operates Internet-based portals on an enterprise-wide basis on behalf of state and local governments desiring to provide access to government information and to complete secure government-based transactions through multiple online channels, including mobile devices. These portals consist of websites and applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts (see Note 2), NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC’s self-funded business model allows the Company to generate revenues by sharing in the fees the Company collects from eGovernment transactions. The Company’s government partners benefit through reducing their financial and technology risks, increasing their operational efficiencies, and gaining a centralized, customer-focused presence on the Internet, while businesses and citizens receive a faster, more convenient, and more cost-effective means to interact with governments. The Company is typically responsible for funding up-front investment and ongoing operations and maintenance costs of the outsourced government portals.
 
The Company’s software & services businesses primarily include its subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies (see Note 2).

Basis of presentation

The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating outsourced portals on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative expenses and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company’s software & services businesses, including information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, corporate-level expenses for market development and public relations, and gains and losses on disposal of assets.
 
The Company reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling & administrative expenses of $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software & services revenues for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows. Certain other income statement amounts for the three- and nine-month periods ended September 30, 2014 have been reclassified to conform to the 2015 presentation.

Trade accounts receivable
 
The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.

One of the customers who does business with many of the Company’s subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in February 2015. In September 2015, this customer successfully emerged from Chapter 11 proceedings pursuant to a confirmed restructuring plan, and the Company’s related accounts receivable were paid in full.

The Company’s allowance for doubtful accounts at both September 30, 2015 and December 31, 2014 was $0.5 million.
 
Earnings per share

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered 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 considered 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 approximately 0.7 million at both September 30, 2015 and 2014. 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):
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Numerator:
                       
Net income
  $ 12,750     $ 10,361     $ 32,994     $ 30,766  
Less: Income allocated to participating securities
    (117 )     (94 )     (307 )     (297 )
Net income available to common stockholders
  $ 12,633     $ 10,267     $ 32,687     $ 30,469  
Denominator:
                               
Weighted average shares - basic
    65,618       65,288       65,532       65,197  
Performance-based restricted stock awards
    19       -       17       -  
Weighted average shares - diluted
    65,637       65,288       65,549       65,197  
                                 
Basic net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
                                 
Diluted net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At September 30, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $111.9 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. Early adoption is permitted for an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements.
XML 27 R3.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 30, 2015
Dec. 31, 2014
Common stock, par $ 0.0001 $ 0.0001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 65,618,000 65,303,000
Common stock, shares outstanding 65,618,000 65,303,000
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
STOCK BASED COMPENSATION (Tables)
9 Months Ended
Sep. 30, 2015
Stock-based Compensation Expense
The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands):

   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Cost of portal revenues, exclusive of depreciation & amortization
  $ 317     $ 430     $ 1,086     $ 1,032  
Cost of software & services revenues, exclusive of depreciation & amortization
    32       13       54       39  
Selling & administrative
    1,240       1,711       4,245       3,497  
Stock-based compensation expense before income taxes
    1,589       2,154       5,385       4,568  
Income tax benefit
    (573 )     (798 )     (2,047 )     (1,762 )
Net stock-based compensation expense
  $ 1,016     $ 1,356     $ 3,338     $ 2,806  
XML 29 R1.htm IDEA: XBRL DOCUMENT v3.3.0.814
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2015
Oct. 21, 2015
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2015  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q3  
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 Common Stock, Shares Outstanding   65,618,917
XML 30 R18.htm IDEA: XBRL DOCUMENT v3.3.0.814
REPORTABLE SEGMENT AND RELATED INFORMATION (Tables)
9 Months Ended
Sep. 30, 2015
Summary of Financial Information for Reportable Segments
The table below reflects summarized financial information for the Company’s reportable and operating segments for the three-month period ended September 30 (in thousands):

   
Outsourced
Portals
   
Other
Software & Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 70,123     $ 4,924     $ -     $ 75,047  
Costs & expenses
    44,703       1,365       6,932       53,000  
Depreciation & amortization
    1,973       15       128       2,116  
Operating income (loss) before income taxes
  $ 23,447     $ 3,544     $ (7,060 )   $ 19,931  
                                 
2014
                               
Revenues
  $ 65,304     $ 4,223     $ -     $ 69,527  
Costs & expenses (1)
    42,529       1,316       6,930       50,775  
Depreciation & amortization
    2,201       8       83       2,292  
Operating income (loss) before income taxes
  $ 20,574     $ 2,899     $ (7,013 )   $ 16,460  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs & expenses in Outsourced Portals. See Note 1.

The table below reflects summarized financial information for the Company’s reportable and operating segments for the nine-month period ended September 30 (in thousands):
 
 
   
Outsourced
Portals
   
Other
Software &
Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 207,067     $ 14,151     $ -     $ 221,218  
Costs & expenses
    136,201       3,975       21,100       161,276  
Depreciation & amortization
    6,322       33       357       6,712  
Operating income (loss) before income taxes
  $ 64,544     $ 10,143     $ (21,457 )   $ 53,230  
                                 
2014
                               
Revenues
  $ 193,595     $ 12,484     $ -     $ 206,079  
Costs & expenses (1)
    125,916       3,595       19,661       149,172  
Depreciation & amortization
    6,568       29       222       6,819  
Operating income (loss) before income taxes
  $ 61,111     $ 8,860     $ (19,883 )   $ 50,088  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs & expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software & Services. See Note 1.
XML 31 R4.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Revenues:        
Portal revenues $ 70,123 $ 65,304 $ 207,067 $ 193,595
Software & services revenues 4,924 4,223 14,151 12,484
Total revenues 75,047 69,527 221,218 206,079
Operating expenses:        
Cost of portal revenues, exclusive of depreciation & amortization (Note 1) 41,058 39,091 125,367 116,201
Cost of software & services revenues, exclusive of depreciation & amortization (Note 1) 1,365 1,287 3,976 3,525
Selling & administrative (Note 1) 10,577 10,397 31,933 29,446
Depreciation & amortization 2,116 2,292 6,712 6,819
Total operating expenses 55,116 53,067 167,988 155,991
Operating income (loss) before income taxes 19,931 16,460 53,230 50,088
Income tax provision 7,181 6,099 20,236 19,322
Net income $ 12,750 $ 10,361 $ 32,994 $ 30,766
Basic net income per share (Note 1) $ 0.19 $ 0.16 $ 0.50 $ 0.47
Diluted net income per share (Note 1) $ 0.19 $ 0.16 $ 0.50 $ 0.47
Weighted average shares outstanding:        
Basic 65,618 65,288 65,532 65,197
Diluted 65,637 65,288 65,549 65,197
XML 32 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
REPORTABLE SEGMENT AND RELATED INFORMATION
9 Months Ended
Sep. 30, 2015
REPORTABLE SEGMENT AND RELATED INFORMATION
6.  REPORTABLE SEGMENT AND RELATED INFORMATION

The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating outsourced state and local government portals and the corporate divisions that directly support portal operations. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and has been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Unallocated corporate-level expenses are reported in the reconciliation of the segment totals to the related consolidated totals as “Other Reconciling Items.” There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and 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) before income taxes. 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-month period ended September 30 (in thousands):

   
Outsourced
Portals
   
Other
Software & Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 70,123     $ 4,924     $ -     $ 75,047  
Costs & expenses
    44,703       1,365       6,932       53,000  
Depreciation & amortization
    1,973       15       128       2,116  
Operating income (loss) before income taxes
  $ 23,447     $ 3,544     $ (7,060 )   $ 19,931  
                                 
2014
                               
Revenues
  $ 65,304     $ 4,223     $ -     $ 69,527  
Costs & expenses (1)
    42,529       1,316       6,930       50,775  
Depreciation & amortization
    2,201       8       83       2,292  
Operating income (loss) before income taxes
  $ 20,574     $ 2,899     $ (7,013 )   $ 16,460  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the three-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $1.0 million and a corresponding increase in costs & expenses in Outsourced Portals. See Note 1.

The table below reflects summarized financial information for the Company’s reportable and operating segments for the nine-month period ended September 30 (in thousands):
 
 
   
Outsourced
Portals
   
Other
Software &
Services
   
Other
Reconciling
Items
   
Consolidated
Total
 
2015
                       
Revenues
  $ 207,067     $ 14,151     $ -     $ 221,218  
Costs & expenses
    136,201       3,975       21,100       161,276  
Depreciation & amortization
    6,322       33       357       6,712  
Operating income (loss) before income taxes
  $ 64,544     $ 10,143     $ (21,457 )   $ 53,230  
                                 
2014
                               
Revenues
  $ 193,595     $ 12,484     $ -     $ 206,079  
Costs & expenses (1)
    125,916       3,595       19,661       149,172  
Depreciation & amortization
    6,568       29       222       6,819  
Operating income (loss) before income taxes
  $ 61,111     $ 8,860     $ (19,883 )   $ 50,088  
 
(1)
The Company reclassified certain income statement employee benefit-related expenses for the nine-month period ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of costs & expenses in Other Reconciling Items of $3.2 million and corresponding increases in costs & expenses of $3.1 million and $0.1 million, respectively, in Outsourced Portals and Other Software & Services. See Note 1.

The Company’s Texas portal contract accounted for approximately 21% of the Company’s total consolidated revenues for the three- and nine-month periods ended September 30, 2015 compared to 22% in the corresponding prior year periods. No other state portal contract accounted for more than 10% of the Company’s total consolidated revenues.
XML 33 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
INCOME TAXES
9 Months Ended
Sep. 30, 2015
INCOME TAXES
5.  INCOME TAXES

The Company’s effective tax rate was approximately 36% and 38%, respectively, for the three- and nine-month periods ended September 30, 2015, compared to 37% and 39%, respectively, in the corresponding prior year periods. The Company’s effective tax rate in the current quarter and year-to-date periods was lower than the prior year periods mainly due to the recognition of a favorable income tax benefit resulting from the reduction of uncertain tax positions in connection with the expiration of the statute of limitations, the completion of an IRS examination of the Company’s 2012 federal tax return and other adjustments related to the filing of the Company’s 2014 federal tax return during the third quarter of 2015.
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2015
Mar. 31, 2015
Jun. 30, 2015
Sep. 30, 2015
Dec. 31, 2014
Performance Shares          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation award shares granted in period   109,705      
Share based compensation award granted in period grant-date fair value   $ 1.9      
Share based compensation award vesting period   3 years      
Share based compensation award end date of the a three-year performance period       Dec. 31, 2017  
Performance criteria over the performance period       The actual number of shares earned will be based on the Company's performance related to the following performance criteria over the performance period Operating income growth (three-year compound annual growth rate); Total consolidated revenue growth (three-year compound annual growth rate); and Cash flow return on invested capital, excluding income taxes paid (three-year average).  
Performance Shares | Performance Period 2012 to 2014          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation award shares earned in period         67,239
Share based compensation dividend earned on shares subject to the awards, shares         4,043
Share based compensation performance-based restricted stock awards, vesting date         Jan. 30, 2015
Share based compensation performance-based restricted stock awards, grant date         Jan. 30, 2012
Restricted Stock | Service Based Awards | Employees And Executives          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation award shares granted in period 7,276     269,431  
Share based compensation award granted in period grant-date fair value $ 0.1     $ 4.6  
Share based compensation award vesting period 1 year     1 year  
Restricted Stock | Service Based Awards | Employees And Executives | Annual installment          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation award annual installment vesting rate 25.00%     25.00%  
Restricted Stock | Service Based Awards | Non Employee Directors          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation award shares granted in period     45,619    
Share based compensation award granted in period grant-date fair value     $ 0.8    
Share based compensation award vesting period     1 year    
XML 35 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
The Company and Summary of Significant Accounting Policies - Additional Information (Detail)
shares in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2015
USD ($)
Categories
Sep. 30, 2014
USD ($)
Sep. 30, 2015
USD ($)
Categories
shares
Sep. 30, 2014
USD ($)
shares
Dec. 31, 2014
USD ($)
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]          
Number of business channels | Categories 2   2    
Number of revenue and cost categories | Categories 2   2    
Selling & administrative $ 10,577,000 $ 10,397,000 $ 31,933,000 $ 29,446,000  
Cost of portal revenues, exclusive of depreciation & amortization 41,058,000 39,091,000 125,367,000 116,201,000  
Cost of software & services revenues, exclusive of depreciation & amortization 1,365,000 1,287,000 3,976,000 $ 3,525,000  
Allowance for doubtful accounts 500,000   $ 500,000   $ 500,000
Unvested service-based restricted stock awards included in the calculation of earnings per share | shares     0.7 0.7  
Reclassification Adjustment          
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]          
Selling & administrative   (1,000,000)   $ (3,200,000)  
Cost of portal revenues, exclusive of depreciation & amortization   $ 1,000,000   3,100,000  
Cost of software & services revenues, exclusive of depreciation & amortization       $ 100,000  
Deposits Assets          
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]          
Cash subject to FDIC insurance 10,500,000   $ 10,500,000    
Cash not subject to FDIC insurance 111,900,000   111,900,000    
Deposits Assets | Maximum          
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]          
FDIC deposit insurance coverage per depositor $ 250,000   $ 250,000    
XML 36 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Sep. 30, 2015
Computation 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):
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Numerator:
                       
Net income
  $ 12,750     $ 10,361     $ 32,994     $ 30,766  
Less: Income allocated to participating securities
    (117 )     (94 )     (307 )     (297 )
Net income available to common stockholders
  $ 12,633     $ 10,267     $ 32,687     $ 30,469  
Denominator:
                               
Weighted average shares - basic
    65,618       65,288       65,532       65,197  
Performance-based restricted stock awards
    19       -       17       -  
Weighted average shares - diluted
    65,637       65,288       65,549       65,197  
                                 
Basic net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
                                 
Diluted net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
XML 37 R13.htm IDEA: XBRL DOCUMENT v3.3.0.814
SUBSEQUENT EVENT
9 Months Ended
Sep. 30, 2015
SUBSEQUENT EVENT
7.  SUBSEQUENT EVENT

Special Cash Dividend

On November 2, 2015, the Company’s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, which is expected to total approximately $36.5 million based on the current number of shares outstanding, will be paid on January 4, 2016, out of the Company’s available cash. In addition, holders of performance-based restricted stock on the record date will accrue dividend equivalents that may be earned and become payable in the form of shares of common stock at the end of the respective performance period to the extent that the underlying shares of restricted stock are earned.
XML 38 R14.htm IDEA: XBRL DOCUMENT v3.3.0.814
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2015
Basis of presentation
Basis of presentation

The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating outsourced portals on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative expenses and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), provision for losses on accounts receivable, subcontractor labor costs, gains and losses on disposal of assets, telecommunications, fees required to process credit/debit card and automated clearinghouse transactions, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, gains and losses on disposal of assets and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all costs of non-customer service personnel from the Company’s software & services businesses, including information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, corporate-level expenses for market development and public relations, and gains and losses on disposal of assets.
 
The Company reclassified certain income statement employee benefit-related expenses for the three- and nine-month periods ended September 30, 2014 to conform to the 2015 presentation. The reclassification resulted in a reduction of selling & administrative expenses of $1.0 million and $3.2 million, respectively, for the three- and nine-month periods ended September 30, 2014 and corresponding increases of $1.0 million and $3.1 million, respectively, in cost of portal revenues for the same periods and an increase of $0.1 million in cost of software & services revenues for the nine-month period ended September 30, 2014. The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows. Certain other income statement amounts for the three- and nine-month periods ended September 30, 2014 have been reclassified to conform to the 2015 presentation.
Trade accounts receivable
Trade accounts receivable
 
The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.

One of the customers who does business with many of the Company’s subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in February 2015. In September 2015, this customer successfully emerged from Chapter 11 proceedings pursuant to a confirmed restructuring plan, and the Company’s related accounts receivable were paid in full.

The Company’s allowance for doubtful accounts at both September 30, 2015 and December 31, 2014 was $0.5 million.
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 considered 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 considered 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 approximately 0.7 million at both September 30, 2015 and 2014. 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):
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Numerator:
                       
Net income
  $ 12,750     $ 10,361     $ 32,994     $ 30,766  
Less: Income allocated to participating securities
    (117 )     (94 )     (307 )     (297 )
Net income available to common stockholders
  $ 12,633     $ 10,267     $ 32,687     $ 30,469  
Denominator:
                               
Weighted average shares - basic
    65,618       65,288       65,532       65,197  
Performance-based restricted stock awards
    19       -       17       -  
Weighted average shares - diluted
    65,637       65,288       65,549       65,197  
                                 
Basic net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
                                 
Diluted net income per share:
                               
Net income
  $ 0.19     $ 0.16     $ 0.50     $ 0.47  
Concentration of credit risk
Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At September 30, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.5 million, and approximately $111.9 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.
Recent accounting pronouncements
Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. Early adoption is permitted for an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements.
XML 39 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
OUTSOURCED GOVERNMENT CONTRACTS (Tables)
9 Months Ended
Sep. 30, 2015
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies
The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies as of September 30, 2015:
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Connecticut Interactive, LLC
www.ct.gov (Connecticut)
2014
1/9/2017 (1/9/2020)
Wisconsin Interactive Network, LLC
www.wisconsin.gov (Wisconsin)
2013
5/13/2018 (5/13/2023)
Pennsylvania Interactive, LLC
www.pa.gov (Pennsylvania)
2012
11/30/2017 (11/30/2022)
NICUSA, OR Division
www.oregon.gov (Oregon)
2011
11/22/2021
NICUSA, MD Division 
www.maryland.gov (Maryland)
2011
8/10/2017 (8/10/2019)
Mississippi Interactive, LLC
www.ms.gov (Mississippi)
2011
12/31/2015 (12/31/2021)
New Jersey Interactive, LLC
www.nj.gov (New Jersey)
2009
5/1/2020 (5/1/2022)
Texas NICUSA, LLC
www.Texas.gov (Texas)
2009
8/31/2018
West Virginia Interactive, LLC
www.WV.gov (West Virginia)
2007
3/31/2016
Vermont Information Consortium, LLC
www.Vermont.gov (Vermont)
2006
6/8/2016 (6/8/2019)
Colorado Interactive, LLC
www.Colorado.gov (Colorado)
2005
4/30/2019 (4/30/2023)
South Carolina Interactive, LLC
www.SC.gov (South Carolina)
2005
7/15/2019 (7/15/2021)
Kentucky Interactive, LLC
www.Kentucky.gov (Kentucky)
2003
8/31/2016
Alabama Interactive, LLC
www.Alabama.gov (Alabama)
2002
3/1/2016 (3/1/2017)
Rhode Island Interactive, LLC
www.RI.gov (Rhode Island)
2001
7/1/2017 (7/1/2019)
Oklahoma Interactive, LLC
www.OK.gov (Oklahoma)
2001
3/31/2016 (3/31/2020)
Montana Interactive, LLC
www.MT.gov (Montana)
2001
12/31/2017 (12/31/2020)
NICUSA, TN Division
www.TN.gov (Tennessee)
2000
3/31/2017
Hawaii Information Consortium, LLC
 
www.eHawaii.gov (Hawaii)
 
2000
 
1/3/2016
(3-year renewal options)
Idaho Information Consortium, LLC
www.Idaho.gov (Idaho)
2000
6/30/2017
Utah Interactive, LLC
www.Utah.gov (Utah)
1999
6/5/2019
Maine Information Network, LLC
www.Maine.gov (Maine)
1999
7/1/2018
 
 
NIC Portal Entity
 
Portal Website (State)
Year Services
Commenced
Contract Expiration Date
(Renewal Options Through)
Arkansas Information Consortium, LLC
www.Arkansas.gov (Arkansas)
1997
6/30/2018
Iowa Interactive, LLC
www.Iowa.gov (Iowa)
1997
6/30/2016 (6/30/2020)
Indiana Interactive, LLC
www.IN.gov (Indiana)
1995
7/31/2016
Nebraska Interactive, LLC
www.Nebraska.gov (Nebraska)
1995
1/31/2016
Kansas Information Consortium, LLC
 
www.Kansas.gov (Kansas)
 
1992
 
12/31/2021
(annual 1-year renewal options)
XML 40 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
Outsourced Government Contracts - Additional Information (Detail)
$ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2015
Sep. 30, 2015
USD ($)
Contract
Customer
Option
Jun. 30, 2015
RenewalOptions
Mar. 31, 2015
Sep. 30, 2014
USD ($)
Sep. 30, 2015
USD ($)
Contract
Customer
Sep. 30, 2014
USD ($)
Contracts [Line Items]              
Number of portal outsourcing contracts that can be terminated by the other party without cause on period of notice | Contract   17       17  
Performance bond commitments   $ 6,600       $ 6,600  
Number of federal agencies the Company currently has contracts with to provide outsourced services | Customer   1       1  
Number of outsourced portal services or software development and services contracts with expiration date within a 12-month period | Contract   14       14  
Percentage of total consolidated revenues related to contracts with expiration dates within a 12-month period   31.00%       31.00%  
Revenues   $ 75,047     $ 69,527 $ 221,218 $ 206,079
Portal revenues   $ 70,123     65,304 $ 207,067 193,595
Customer Concentration Risk | Consolidated Revenues              
Contracts [Line Items]              
Concentration risk percentage   64.00%       63.00%  
New Mexico Interactive, LLC              
Contracts [Line Items]              
Contract renewal option | Option   2          
Option for the government to extend the contract   1 year          
NICUSA, AZ Division              
Contracts [Line Items]              
Contract Expiration Date           Mar. 26, 2014  
NICUSA, AZ Division | Consolidated Revenues              
Contracts [Line Items]              
Revenues             800
Delaware Interactive, LLC              
Contracts [Line Items]              
Portal revenues         $ 600 $ 600 $ 1,800
Montana | Extended Term              
Contracts [Line Items]              
Contract period       2 years      
IDAHO | Extended Term              
Contracts [Line Items]              
Contract period       2 years      
State of Alabama | Extended Term              
Contracts [Line Items]              
Contract period       1 year      
TENNESSEE | Extended Term              
Contracts [Line Items]              
Contract period       1 year      
US Department of Transportation, Federal Motor Carrier Safety Administration              
Contracts [Line Items]              
Contract Expiration Date           Aug. 31, 2016  
State of Oklahoma              
Contracts [Line Items]              
Contract period     1 year        
Contract renewal option | RenewalOptions     4        
State of Oklahoma | Renewal Term              
Contracts [Line Items]              
Contract period     1 year        
State of New Jersey              
Contracts [Line Items]              
Contract period     5 years        
Contract renewal option | RenewalOptions     2        
State of New Jersey | Renewal Term              
Contracts [Line Items]              
Contract period     1 year        
State of Utah | Extended Term              
Contracts [Line Items]              
Contract period     3 years        
KENTUCKY | Extended Term              
Contracts [Line Items]              
Contract period   1 year          
State of Maryland | Extended Term              
Contracts [Line Items]              
Contract period   1 year          
State of Maine | Extended Term | Scenario, Forecast              
Contracts [Line Items]              
Contract period 2 years            
State of Texas | Extended Term | Scenario, Forecast              
Contracts [Line Items]              
Contract period 1 year            
XML 41 R26.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes - Additional Information (Detail)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Taxes [Line Items]        
Effective tax rate 36.00% 37.00% 38.00% 39.00%
XML 42 R5.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2014 65,303,000 65,303,000    
Beginning Balance at Dec. 31, 2014 $ 104,138 $ 7 $ 94,690 $ 9,441
Net income 32,994     32,994
Restricted stock vestings (in shares)   336,000    
Restricted stock vestings 74   74  
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards 75   18 57
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares)   (96,000)    
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (1,645)   (1,645)  
Stock-based compensation 5,385   5,385  
Tax deductions relating to stock-based compensation 236   236  
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards (149)   (149)  
Issuance of common stock under employee stock purchase plan (in shares)   75,000    
Issuance of common stock under employee stock purchase plan 1,131   1,131  
Ending Balance at Sep. 30, 2015 $ 142,239 $ 7 $ 99,740 $ 42,492
Ending Balance (in shares) at Sep. 30, 2015 65,618,000 65,618,000    
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DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS
9 Months Ended
Sep. 30, 2015
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS
4.  DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS

On July 9, 2015, the Company entered into Amendment No. 1 to Amended and Restated Credit Agreement (the “Amendment’), which amends the Amended and Restated Credit Agreement, dated as of August 6, 2014, by and between the Company and Bank of America, N.A. (the “Credit Agreement”). The material amendments to the Credit Agreement made by the Amendment include (a) extending the maturity date to May 1, 2017; and (b) decreasing the margin added to the LIBOR rate for any amounts selected by the Company to be borrowed at the LIBOR rate, and the fees payable on outstanding letters of credit, to either 1.15% (if the Company’s consolidated leverage ratio is less than 1.50:1) or 1.25% (if the Company’s consolidated leverage ratio is greater than or equal to 1.50:1) of face value per annum.

The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default. The Amendment also continues to require the Company to maintain compliance with the following financial covenants (in each case, as defined in the Credit Agreement):
 
Consolidated tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the Credit Agreement); and
 
Consolidated maximum leverage ratio of 1.5:1 (the ratio of total funded debt to EBITDA).

The Company was in compliance with each of these covenants at September 30, 2015. The Company issues letters of credit as collateral for certain office leases, and to a much lesser extent, as collateral for performance on one of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $1.2 million and $1.4 million, respectively, at September 30, 2015 and December 31, 2014. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.8 million in available capacity to issue additional letters of credit and $8.8 million of unused borrowing capacity at September 30, 2015 under the facility. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50.0 million, subject to securing additional commitments from the bank.
XML 44 R27.htm IDEA: XBRL DOCUMENT v3.3.0.814
Reportable Segments and Related Information - Additional Information (Detail) - Segment
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]        
Number of reportable segments     1  
Customer Concentration Risk | Consolidated Revenues        
Segment Reporting Information [Line Items]        
Concentration risk percentage 64.00%   63.00%  
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues        
Segment Reporting Information [Line Items]        
Concentration risk percentage 21.00% 22.00% 21.00% 22.00%
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Computation of Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Numerator:        
Net income $ 12,750 $ 10,361 $ 32,994 $ 30,766
Less: Income allocated to participating securities (117) (94) (307) (297)
Net income available to common stockholders $ 12,633 $ 10,267 $ 32,687 $ 30,469
Denominator:        
Weighted average shares - basic 65,618 65,288 65,532 65,197
Performance-based restricted stock awards 19   17  
Weighted average shares - diluted 65,637 65,288 65,549 65,197
Basic net income per share:        
Net income $ 0.19 $ 0.16 $ 0.50 $ 0.47
Diluted net income per share:        
Net income $ 0.19 $ 0.16 $ 0.50 $ 0.47

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STOCK BASED COMPENSATION
9 Months Ended
Sep. 30, 2015
STOCK BASED COMPENSATION
3.  STOCK BASED COMPENSATION

During the three- and nine-month periods ended September 30, 2015, the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 7,276 shares and 269,431 shares, respectively, with a grant-date fair value totaling approximately $0.1 million and $4.6 million, respectively. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. In addition, during the second quarter of 2015, non-employee directors of the Company were granted service-based restricted stock awards totaling 45,619 shares with a grant-date fair value totaling approximately $0.8 million. These non-employee director restricted stock awards vest one year from the date of grant. 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 estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.

During the first quarter of 2015, the Board of Directors of the Company also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company’s executive compensation program totaling 109,705 shares with a grant-date fair value totaling approximately $1.9 million, which represents the maximum number of shares able to be earned by the executive officers at the end of a three-year performance period ending December 31, 2017. 

The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period:

Operating income growth (three-year compound annual growth rate);
 
Total consolidated revenue growth (three-year compound annual growth rate); and
 
Cash flow return on invested capital, excluding income taxes paid (three-year average).
 
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 dividend declared during the performance period, payable in the form of 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, 2014, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on January 30, 2012 ended. Based on the Company’s actual financial results from 2012 through 2014, 67,239 of the shares subject to the awards and 4,043 dividend shares were earned and vested on January 30, 2015.
 
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 Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures.

The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands):

   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2015
   
2014
   
2015
   
2014
 
Cost of portal revenues, exclusive of depreciation & amortization
  $ 317     $ 430     $ 1,086     $ 1,032  
Cost of software & services revenues, exclusive of depreciation & amortization
    32       13       54       39  
Selling & administrative
    1,240       1,711       4,245       3,497  
Stock-based compensation expense before income taxes
    1,589       2,154       5,385       4,568  
Income tax benefit
    (573 )     (798 )     (2,047 )     (1,762 )
Net stock-based compensation expense
  $ 1,016     $ 1,356     $ 3,338     $ 2,806