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Quarterly Financial Data (Unaudited) - (Tables)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Financial Information

 

 

 

Quarters

 

 

 

 

 

 

 

First (1)

 

 

Second

 

 

Third (2)

 

 

Fourth (3)

 

 

Total

 

(amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

82,713

 

 

$

92,667

 

 

$

90,260

 

 

$

93,129

 

 

$

358,769

 

Direct costs

 

 

66,874

 

 

 

75,082

 

 

 

72,935

 

 

 

75,391

 

 

 

290,282

 

Gross profit

 

 

15,839

 

 

 

17,585

 

 

 

17,325

 

 

 

17,738

 

 

 

68,487

 

Selling, general, and administrative expenses

 

 

15,256

 

 

 

16,064

 

 

 

16,560

 

 

 

18,527

 

 

 

66,407

 

Operating income (loss)

 

 

583

 

 

 

1,521

 

 

 

765

 

 

 

(789

)

 

 

2,080

 

Interest and other income (expense), net

 

 

(54

)

 

 

(218

)

 

 

630

 

 

 

(169

)

 

 

189

 

Income (loss) before income taxes

 

 

529

 

 

 

1,303

 

 

 

1,395

 

 

 

(958

)

 

 

2,269

 

Provision for income taxes

 

 

115

 

 

 

363

 

 

 

307

 

 

 

4,301

 

 

 

5,086

 

Net income (loss)

 

$

414

 

 

$

940

 

 

$

1,088

 

 

$

(5,259

)

 

$

(2,817

)

Basic net income (loss) per share

 

$

0.03

 

 

$

0.07

 

 

$

0.09

 

 

$

(0.39

)

 

$

(0.20

)

Diluted net income (loss) per share

 

$

0.03

 

 

$

0.07

 

 

$

0.09

 

 

$

(0.39

)

 

$

(0.20

)

 

 

 

Quarters

 

 

 

 

 

 

 

First

 

 

Second (4)

 

 

Third (5)

 

 

Fourth (6)

 

 

Total

 

(amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

77,006

 

 

$

75,521

 

 

$

74,039

 

 

$

74,644

 

 

$

301,210

 

Direct costs

 

 

62,777

 

 

 

61,864

 

 

 

61,093

 

 

 

59,500

 

 

 

245,234

 

Gross profit

 

 

14,229

 

 

 

13,657

 

 

 

12,946

 

 

 

15,144

 

 

 

55,976

 

Selling, general, and administrative expenses

 

 

12,829

 

 

 

12,845

 

 

 

12,562

 

 

 

13,572

 

 

 

51,808

 

Operating income

 

 

1,400

 

 

 

812

 

 

 

384

 

 

 

1,572

 

 

 

4,168

 

Interest and other income (expense), net

 

 

(123

)

 

 

(162

)

 

 

(85

)

 

 

259

 

 

 

(111

)

Income before income taxes

 

 

1,277

 

 

 

650

 

 

 

299

 

 

 

1,831

 

 

 

4,057

 

Provision for income taxes

 

 

526

 

 

 

216

 

 

 

259

 

 

 

2,250

 

 

 

3,251

 

Net income (loss)

 

$

751

 

 

$

434

 

 

$

40

 

 

$

(419

)

 

$

806

 

Basic net income (loss) per share

 

$

0.05

 

 

$

0.03

 

 

$        0.00

 

 

$

(0.03

)

 

$

0.05

 

Diluted net income (loss) per share

 

$

0.05

 

 

$

0.03

 

 

$        0.00

 

 

$

(0.03

)

 

$

0.05

 

 

(1)

During the 2018 first quarter, the Company acquired Soft Company. The results of operations of Soft Company have been included in the Company’s consolidated financial results since the date of acquisition.

 

(2)

During the 2018 third quarter, the Company recorded a $0.8 million non-taxable life insurance gain for a former executive that passed away in the 2018 third quarter. The non-taxable life insurance gain is included in other income. The Company also incurred approximately $0.5 million of selling, general and administrative expense due to the valuation of the contingent consideration related to the Soft Company acquisition.

 

(3)

During the 2018 fourth quarter, the Company recorded a valuation allowance against its U.S. deferred tax assets of $4.1 million based on the history of U.S. losses for tax purposes and uncertain profitability in future years. Approximately $3.8 million of the total U.S. valuation allowance was recorded to income tax expense, partially offset by the reversal of the valuation allowance in the United Kingdom. The Company also recorded severance charges for former executives to selling, general, and administrative expense in the 2018 fourth quarter.

 

(4)

During the 2017 second quarter, the Company incurred $0.8 million in severance charges, which reduced net income by $0.5 million and basic and diluted earnings per share by $0.03. The Company recorded the severance charges in direct costs ($0.4 million) and selling, general, and administrative expenses ($0.4 million).

 

(5)

During the 2017 third quarter, the Company incurred $1.2 million of unexpected costs associated with the Company’s self-insured medical plan, which reduced net income by $0.7 million and basic and diluted earnings per share by $0.05.

 

(6)

During the 2017 fourth quarter, the Company incurred a $1.7 million charge due to tax law changes that required the Company to reduce its deferred tax assets. Also included in interest and other income (expense) in the 2017 fourth quarter is a $0.4 million non-taxable life insurance gain for a former executive that passed away in the 2017 fourth quarter.