Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 06, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | HMS HOLDINGS CORP | |
Entity Central Index Key | 1,196,501 | |
Trading Symbol | hmsy | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 84,083,565 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 79,484 | $ 175,999 |
Accounts receivable, net of allowance of $11,276 and $10,772, at September 30, 2017 and December 31, 2016, respectively | 178,700 | 173,582 |
Prepaid expenses | 14,369 | 13,699 |
Income tax receivable | 6,085 | 3,354 |
Deferred financing costs, net | 1,227 | |
Other current assets | 289 | 1,001 |
Total current assets | 280,154 | 367,635 |
Property and equipment, net | 95,034 | 92,167 |
Goodwill | 485,540 | 379,716 |
Intangible assets, net | 98,090 | 37,797 |
Deferred financing costs, net | 2,790 | |
Other assets | 2,403 | 2,650 |
Total assets | 961,221 | 882,755 |
Current liabilities: | ||
Revolving credit facility | 240,000 | |
Accounts payable, accrued expenses and other liabilities | 47,484 | 59,402 |
Estimated liability for appeals | 30,754 | 30,755 |
Total current liabilities | 318,238 | 90,157 |
Long-term liabilities: | ||
Revolving credit facility | 197,796 | |
Net deferred tax liabilities | 41,441 | 22,717 |
Deferred rent | 4,883 | 5,427 |
Other liabilities | 9,275 | 10,048 |
Total long-term liabilities | 55,599 | 235,988 |
Total liabilities | 373,837 | 326,145 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Preferred stock -- $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock -- $0.01 par value; 175,000,000 shares authorized; 96,492,808 shares issued and 84,078,730 shares outstanding at September 30, 2017; 95,966,852 shares issued and 83,552,774 shares outstanding at December 31, 2016 | 965 | 959 |
Capital in excess of par value | 361,462 | 345,025 |
Retained earnings | 340,441 | 326,110 |
Treasury stock, at cost: 12,414,078 shares at September 30, 2017 and December 31, 2016 | (115,484) | (115,484) |
Total shareholders' equity | 587,384 | 556,610 |
Total liabilities and shareholders' equity | $ 961,221 | $ 882,755 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for doubtful accounts | $ 11,276 | $ 10,772 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 96,492,808 | 95,966,852 |
Common stock, shares outstanding (in shares) | 84,078,730 | 83,552,774 |
Treasury cost, shares (in shares) | 12,414,078 | 12,414,078 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue | $ 125,673 | $ 122,860 | $ 372,719 | $ 364,130 |
Cost of services: | ||||
Compensation | 49,012 | 48,298 | 149,784 | 142,042 |
Data processing | 12,067 | 9,541 | 33,131 | 28,269 |
Occupancy | 4,332 | 3,388 | 12,109 | 10,647 |
Direct project expenses | 9,548 | 10,997 | 30,092 | 36,952 |
Other operating expenses | 7,446 | 8,465 | 21,212 | 20,649 |
Amortization of acquisition related software and intangible assets | 8,167 | 6,390 | 21,825 | 20,416 |
Total cost of services | 90,572 | 87,079 | 268,153 | 258,975 |
Selling, general and administrative expenses | 22,240 | 23,131 | 73,400 | 66,245 |
Total operating expenses | 112,812 | 110,210 | 341,553 | 325,220 |
Operating income | 12,861 | 12,650 | 31,166 | 38,910 |
Interest expense | (3,109) | (2,121) | (7,734) | (6,313) |
Interest income | 14 | 105 | 201 | 215 |
Income before income taxes | 9,766 | 10,634 | 23,633 | 32,812 |
Income taxes | 3,394 | (3,412) | 9,302 | 4,326 |
Net income | $ 6,372 | $ 14,046 | $ 14,331 | $ 28,486 |
Basic income per common share: | ||||
Net income per common share -- basic (in dollars per share) | $ 0.08 | $ 0.17 | $ 0.17 | $ 0.34 |
Diluted income per common share: | ||||
Net income per common share -- diluted (in dollars per share) | $ 0.07 | $ 0.17 | $ 0.17 | $ 0.33 |
Weighted average shares: | ||||
Basic (in shares) | 83,923 | 84,101 | 83,778 | 84,338 |
Diluted (in shares) | 85,730 | 84,853 | 85,586 | 85,993 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 95,966,852 | 12,414,078 | |||
Balance at Dec. 31, 2016 | $ 959 | $ 345,025 | $ 326,110 | $ (115,484) | $ 556,610 |
Net income | 14,331 | 14,331 | |||
Stock-based compensation expense | 16,761 | $ 16,761 | |||
Exercise of stock options (in shares) | 162,861 | 173,539 | |||
Exercise of stock options | $ 2 | 2,578 | $ 2,580 | ||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 363,095 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | $ 4 | (2,902) | (2,898) | ||
Balance (in shares) at Sep. 30, 2017 | 96,492,808 | 12,414,078 | |||
Balance at Sep. 30, 2017 | $ 965 | $ 361,462 | $ 340,441 | $ (115,484) | $ 587,384 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net income | $ 14,331 | $ 28,486 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 20,599 | 18,875 |
Amortization of intangible assets | 15,947 | 15,101 |
Amortization of deferred financing costs | 1,563 | 1,563 |
Stock-based compensation expense | 16,761 | 10,747 |
Deferred income taxes | (726) | (5,902) |
(Gain) / Loss on disposal of assets | (970) | |
Change in fair value of contingent consideration | 2,450 | |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable | 5,630 | 8,534 |
Prepaid expenses | 757 | (1,905) |
Other current assets | 712 | 2,579 |
Other assets | 163 | (38) |
Income taxes receivable / (payable) | (2,731) | (15,368) |
Accounts payable, accrued expenses and other liabilities | (20,357) | (2,584) |
Estimated liability for appeals | (1) | (2,896) |
Net cash provided by operating activities | 55,098 | 56,222 |
Investing activities: | ||
Acquisition of a business, net of cash acquired | (171,174) | (20,910) |
Proceeds from sale of cost basis investment | 2,496 | |
Purchases of property and equipment | (11,656) | (8,796) |
Investment in capitalized software | (10,664) | (4,910) |
Net cash used in investing activities | (193,494) | (32,120) |
Financing activities: | ||
Proceeds from exercise of stock options | 2,580 | 2,940 |
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation | (2,898) | (1,090) |
Payments on capital lease obligations | (5) | (43) |
Proceeds from revolving credit facility | 42,204 | |
Net cash provided by financing activities | 41,881 | 1,807 |
Net (decrease) / increase in cash and cash equivalents | (96,515) | 25,909 |
us-gaap_CashAndCashEquivalentsAbstract | ||
Cash and cash equivalents at beginning of year | 175,999 | 145,610 |
Cash and cash equivalents at end of period | 79,484 | 171,519 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 12,317 | 19,478 |
Cash paid for interest | 5,819 | 4,597 |
Supplemental disclosure of non-cash activities: | ||
Change in balance of accrued property and equipment purchases | $ (414) | $ (176) |
Note 1 - Business and Summary o
Note 1 - Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Business and Summary of Significant Accounting Policies (a) Business HMS is a leading provider of cost containment solutions in the U.S. healthcare marketplace. Using innovative technology as well as extensive data services and powerful analytics, the Company delivers coordination of benefits, payment integrity, and health management and member engagement solutions through its operating subsidiaries to help at-risk healthcare organizations recover improper payments; prevent future improper payments; reduce fraud, waste and abuse; better manage the care their members receive; and ensure regulatory compliance. The Company serves commercial health plans, state government agencies, federal programs, at-risk providers, pharmacy benefit managers and employers. The accompanying consolidated financial statements and notes are unaudited. Accordingly, they do not not may December 31, 2016 2016 10 December 31, 2016 not The preparation of the Company’s unaudited consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, fixed assets, accrued expenses, estimated liability for appeals, the disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. The Company’s actual results could differ from those estimates. HMS is managed and operates as one (b) Summary of Significant Accounting Policies There have been no 2016 10 Recently Adopted Accounting Pronouncements In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.9 nine September 30, 2016. $1.9 three nine September 30, 2016. three nine September 30, 2016, $1.9 $0.02 no Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 December 15, 2017, not January 1, 2018. two 2014 09 fourth 2017. In February 2016, No. 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . 2016 15 December 15, 2017, not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” December 15, 2017, not In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2017 04 2 December 15, 2019. January 1, 2017. not In May 2017, No. 2017 09, Compensation – Stock Compensation (Topic 718 2017 09” 2017 09 December 15, 2017. not not |
Note 2 - Business Combinations
Note 2 - Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Business Combinations On April 17, 2017, 100% $171.6 75% 25% The purchase price was subject to certain post-closing purchase price adjustments and the initial purchase price allocation as of the date of acquisition was based on a preliminary valuation. Estimates and assumptions for which the Company is still obtaining or evaluating information are subject to change up to one may not not During the third 2017, $8.9 $3.4 $5.5 36 15 April 17, 2017, (in thousands) Cash and cash equivalents $ 435 Accounts receivable 10,748 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 105,677 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,450 ) Other liabilities (2,057 ) Total purchase price $ 171,609 The purchase price allocated to the intangibles acquired was as follows (in thousands) Useful Life Customer relationships $ 56,200 15 Intellectual property 19,600 6 Trade name 310 1.5 Restrictive covenants 130 1 Fair value of intangibles acquired $ 76,240 Acquisition costs recorded to selling, general and administrative expenses were as follows (in thousands) Other operating expenses - consulting fees $ 3,515 Other operating expenses - legal fees 832 Other operating expenses - transaction costs 185 Acquisition-related costs $ 4,532 Goodwill was determined based on the difference between the purchase price and the fair values of the tangible and intangible assets acquired. The financial results of Eliza have been included in the Company’s consolidated financial statements since the date of acquisition. Eliza contributed approximately $17.5 September 30, 2017. |
Note 3 - Accounts Receivable an
Note 3 - Accounts Receivable and Allowance | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Accounts Receivable and Allowance for Doubtful Accounts [Text Block] | 3. Accounts Receivable and Allowance The Company’s accounts receivable, net, consisted of the following (in thousands) September 30, December 31, Accounts receivable $ 189,976 $ 184,354 Allowance (11,276 ) (10,772 ) Accounts receivable, net $ 178,700 $ 173,582 A summary of the activity in the allowance was as follows (in thousands) September 30, December 31, Balance--beginning of period $ 10,772 $ 11,464 Provision 11,509 21,583 Charge-offs (11,005 ) (22,383 ) Recoveries — 108 Balance--end of period $ 11,276 $ 10,772 |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill and Intangible Assets Intangible assets consisted of the following ( in thousands, except for useful life Gross Accumulated Net Carrying Useful Life September 30, 2017 Customer relationships $ 159,290 $ (84,106 ) $ 75,184 5 - 15 Trade name 16,246 (13,263 ) 2,983 1.5 - 5 Intellectual property 21,700 (1,952 ) 19,748 3 - 7 Restrictive covenants 263 (88 ) 175 1 - 5 Total $ 197,499 $ (99,409 ) $ 98,090 December 31, 2016 Customer relationships $ 103,090 $ (71,914 ) $ 31,176 5 - 10 Trade name 15,936 (11,393 ) 4,543 3 - 5 Intellectual property 2,100 (140 ) 1,960 3 - 7 Restrictive covenants 133 (15 ) 118 3 - 5 Total $ 121,259 $ (83,462 ) $ 37,797 Amortization expense of intangible assets is expected to approximate the following (in thousands): Year ending December 31, Remainder of 2017 $ 5,944 2018 22,921 2019 8,322 2020 6,868 2021 6,540 Thereafter 47,495 For the three September 30, 2017 2016, $6.2 $5.0 nine September 30, 2017 2016, $15.9 $15.1 The changes in the carrying amount of goodwill were as follows (in thousands) Balance at December 31, 2016 $ 379,716 Eliza acquisition 105,677 Essette adjustment 147 Balance at September 30, 2017 $ 485,540 |
Note 5 - Accounts Payable, Accr
Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 5. Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands) September 30, December 31, Accounts payable, trade $ 10,686 $ 13,847 Accrued compensation and other 17,062 28,507 Accrued operating expenses 19,736 17,048 Total accounts payable, accrued expenses and other liabilities $ 47,484 $ 59,402 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The Company’s effective tax rate for the nine September 30, 2017 2016 39.4%, 13.2%, third 2016 38.6% nine September 30, 2017. nine September 30, 2017, Included in Other liabilities on the consolidated balance sheets are the total amount of unrecognized tax benefits of approximately $7.9 $7.4 September 30, 2017 December 31, 2016, $0.7 $0.6 September 30, 2017 December 31, 2016, nine September 30, 2017 2016 $0.1 $0.3 may $0.6 twelve HMS files income tax returns with the U.S. Federal government and various state and local jurisdictions. HMS is no 2012. 2013 2014 2016. |
Note 7 - Estimated Liability fo
Note 7 - Estimated Liability for Appeals | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Estimated Liability and Allowance for Appeals [Text Block] | 7. Estimated Liability For Appeals Under the Company’s contracts with certain commercial health plan customers and its Medicare RAC contracts with CMS, HMS recognizes revenue when HMS claim findings are sent to the Company’s customers for offset against future claim payments to providers. These contracts permit providers the right to appeal HMS claim findings and to pursue additional appeals if the initial appeal is found in favor of HMS’s customer. HMS accrues an estimated liability for these appeals based on the amount of revenue that is subject to appeals and which are probable of being adjudicated in favor of providers following their successful appeal. The Company’s estimates are based on the Company’s historical experience with appeals. The estimated liability for appeals represents the Company’s best estimate of the potential amount of repayments related to appeals of HMS claim findings for which revenue was previously recognized by HMS. The provision included in the estimated liability for appeals is recorded as an offset to revenue in the Company’s unaudited consolidated statements of income. The total estimated liability for appeals balance of $30.8 $30.8 September 30, 2017 December 31, 2016, $18.8 $17.3 $9.8 $11.1 $30.8 $30.8 September 30, 2017 December 31, 2016, $2.2 $2.4 A summary of the activity in the estimated liability for appeals related to the Company’s Medicare RAC contract was as follows (in thousands) September 30, Balance--beginning of period $ 11,126 Provision 83 Appeals found in providers favor (1,443 ) Balance--end of period $ 9,766 |
Note 8 - Credit Agreement
Note 8 - Credit Agreement | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Credit Agreement During the nine September 30, 2017, no $240.0 May 2018. The Credit Agreement provides for an initial $500 one not $75 not $25 no 2.5:1.0. 100% The Credit Agreement requires the Company to comply with certain financial and other covenants, including a maximum consolidated leverage ratio of 3.25:1.00 3.00:1.00. The interest rates applicable to the revolving credit facility are, at the Company’s option, either: a) the LIBOR multiplied by the statutory reserve rate plus an interest margin ranging from 1.50% 2.25% b) a base rate (which is equal to the greatest of (i) Citibank’s prime rate, (ii) the federal funds effective rate plus 0.50% one 1.00% 0.50% 1.25% HMS pays an unused commitment fee on the revolving credit facility during the term of the Credit Agreement ranging from 0.375% 0.50% Interest expense and the commitment fees on the unused portion of the Company’s revolving credit facility were as follows ( in thousands Three Months Ended Nine Months Ended 2017 2016 2017 2016 Interest expense $ 2,230 $ 1,204 $ 5,072 $ 3,572 Commitment fees $ 325 $ 382 $ 1,036 $ 1,138 As of September 30, 2017 December 31, 2016, $1.2 $2.8 three September 30, 2017 2016, $0.5 nine September 30, 2017 2016, $1.5 Although HMS expects that operating cash flows will continue to be a primary source of liquidity for the Company’s operating needs, the revolving credit facility may not HMS has an outstanding irrevocable letter of credit for $3.0 April 26, 2018. The Company’s revolving credit facility is due within one no September 30, 2017, not may not not may As of September 30, 2017, |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. Earnings Per Share Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period. The Company’s dilutive common share equivalents consist of stock options and restricted stock units. The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share amounts) Three Months Ended 2017 2016 Net income $ 6,372 $ 14,046 Weighted average common shares outstanding-basic 83,923 84,101 Plus: net effect of dilutive stock options and restricted stock units 1,807 752 Weighted average common shares outstanding-diluted 85,730 84,853 Net income per common share-basic $ 0.08 $ 0.17 Net income per common share-diluted $ 0.07 $ 0.17 For the three September 30, 2017 2016, 2,642,548 1,801,989 not three September 30, 2017 2016, 84,630 35,738 not Nine Months Ended 2017 2016 Net income $ 14,331 $ 28,486 Weighted average common shares outstanding-basic 83,778 84,338 Plus: net effect of dilutive stock options and restricted stock units 1,808 1,655 Weighted average common shares outstanding-diluted 85,586 85,993 Net income per common share-basic $ 0.17 $ 0.34 Net income per common share-diluted $ 0.17 $ 0.33 For the nine September 30, 2017 2016, 2,132,017 2,577,286 not nine September 30, 2017 2016, 63,452 25,036 not |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. Stock-Based Compensation (a) Stock-Based Compensation Expense Total stock-based compensation expense in the Company’s consolidated statements of income related to the Company’s long-term incentive award plans was as follows (in thousands) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of services-compensation $ 1,851 $ 399 $ 5,353 $ 3,540 Selling, general and administrative 5,531 1,703 11,408 7,207 Total $ 7,382 $ 2,102 $ 16,761 $ 10,747 (b) Stock Options For the three September 30, 2017 2016, $3.2 $1.2 nine September 30, 2017 2016, $7.1 $5.3 Presented below is a summary of stock option activity for the nine September 30, 2017 ( in thousands except for weighted average exercise price and weighted average remaining contractual terms Number Weighted Weighted Aggregate Outstanding balance at December 31, 2016 5,191 $ 17.35 Granted 984 18.95 Exercised (174 ) 16.09 Forfeitures (129 ) 16.04 Expired (159 ) 22.99 Outstanding balance at September 30, 2017 5,713 17.50 5.25 $ 18,601 Expected to vest at September 30, 2017 1,993 16.06 6.39 7,885 Exercisable at September 30, 2017 2,755 $ 18.85 3.88 $ 7,352 During the three September 30, 2017 2016, 40,734 211,774 $0.8 $2.4 three September 30, 2017 2016 $0.3 $2.2 nine September 30, 2017 2016, 173,539 510,466 $2.7 $3.6 nine September 30, 2017 2016 $0.6 $6.3 As of September 30, 2017, $11.9 1.9 Excess tax benefit/(deficiency) from the exercise of stock options for the three September 30, 2017 2016 $0.3 $0.5 nine September 30, 2017 2016 $0.2 $1.9 The weighted-average grant date fair value per share of the stock options granted during the nine September 30, 2017 2016 $7.68 $5.49, Nine Months Ended 2017 2016 Expected dividend yield ― ― Risk-free interest rate 1.74 % 1.20 % Expected volatility 44.19 % 43.91 % Expected life (years) 5.00 4.90 (c) Restricted Stock Units For the three September 30, 2017 2016 $4.2 $0.9 nine September 30, 2017 2016 $9.7 $5.4 Presented below is a summary of restricted stock units activity for the nine September 30, 2017 (in thousands, except for weighted average grant date fair value per unit): Number of Weighted Average Outstanding balance at December 31, 2016 1,413 $ 16.44 Granted 599 18.90 Vesting of restricted stock units, net of units withheld for taxes (363 ) 16.45 Units withheld for taxes (155 ) 16.45 Forfeitures (47 ) 17.16 Outstanding balance at September 30, 2017 1,447 $ 17.57 For the three September 30, 2017 2016, 59,784 8,603 $1.0 $0.2 nine September 30, 2017 2016, 599,441 598,531 $11.3 $8.4 As of September 30, 2017, 1,269,271 $14.2 1.5 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments and Contingencies Dennis Demetre and Lori Lewis July 2012, second two one Kern Health Systems v. AMG, Dennis Demetre and Lori Lewis , . September 2014 not June 2016, . In January 2016, July 21, 2017, one November 3, 2017, $60 not From time to time, HMS may not may may may HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not not . |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12. Subsequent Events On November 1, 2017, $50.0 two may may 10b5 1 In connection with the preparation of these unaudited consolidated financial statements, an evaluation of subsequent events was performed through the date of filing and there were no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.9 nine September 30, 2016. $1.9 three nine September 30, 2016. three nine September 30, 2016, $1.9 $0.02 no Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 December 15, 2017, not January 1, 2018. two 2014 09 fourth 2017. In February 2016, No. 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . 2016 15 December 15, 2017, not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” December 15, 2017, not In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2017 04 2 December 15, 2019. January 1, 2017. not In May 2017, No. 2017 09, Compensation – Stock Compensation (Topic 718 2017 09” 2017 09 December 15, 2017. not not |
Note 2 - Business Combinations
Note 2 - Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash and cash equivalents $ 435 Accounts receivable 10,748 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 105,677 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,450 ) Other liabilities (2,057 ) Total purchase price $ 171,609 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Useful Life Customer relationships $ 56,200 15 Intellectual property 19,600 6 Trade name 310 1.5 Restrictive covenants 130 1 Fair value of intangibles acquired $ 76,240 |
Business Combination, Separately Recognized Transactions [Table Text Block] | Other operating expenses - consulting fees $ 3,515 Other operating expenses - legal fees 832 Other operating expenses - transaction costs 185 Acquisition-related costs $ 4,532 |
Note 3 - Accounts Receivable 21
Note 3 - Accounts Receivable and Allowance (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, Accounts receivable $ 189,976 $ 184,354 Allowance (11,276 ) (10,772 ) Accounts receivable, net $ 178,700 $ 173,582 |
Movement in Valuation Allowances and Reserves Roll Forward [Table Text Block] | September 30, December 31, Balance--beginning of period $ 10,772 $ 11,464 Provision 11,509 21,583 Charge-offs (11,005 ) (22,383 ) Recoveries — 108 Balance--end of period $ 11,276 $ 10,772 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Accumulated Net Carrying Useful Life September 30, 2017 Customer relationships $ 159,290 $ (84,106 ) $ 75,184 5 - 15 Trade name 16,246 (13,263 ) 2,983 1.5 - 5 Intellectual property 21,700 (1,952 ) 19,748 3 - 7 Restrictive covenants 263 (88 ) 175 1 - 5 Total $ 197,499 $ (99,409 ) $ 98,090 December 31, 2016 Customer relationships $ 103,090 $ (71,914 ) $ 31,176 5 - 10 Trade name 15,936 (11,393 ) 4,543 3 - 5 Intellectual property 2,100 (140 ) 1,960 3 - 7 Restrictive covenants 133 (15 ) 118 3 - 5 Total $ 121,259 $ (83,462 ) $ 37,797 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Remainder of 2017 $ 5,944 2018 22,921 2019 8,322 2020 6,868 2021 6,540 Thereafter 47,495 |
Schedule of Goodwill [Table Text Block] | Balance at December 31, 2016 $ 379,716 Eliza acquisition 105,677 Essette adjustment 147 Balance at September 30, 2017 $ 485,540 |
Note 5 - Accounts Payable, Ac23
Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | September 30, December 31, Accounts payable, trade $ 10,686 $ 13,847 Accrued compensation and other 17,062 28,507 Accrued operating expenses 19,736 17,048 Total accounts payable, accrued expenses and other liabilities $ 47,484 $ 59,402 |
Note 7 - Estimated Liability 24
Note 7 - Estimated Liability for Appeals (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Valuation and Qualifying Accounts Disclosure [Table Text Block] | September 30, Balance--beginning of period $ 11,126 Provision 83 Appeals found in providers favor (1,443 ) Balance--end of period $ 9,766 |
Note 8 - Credit Agreement (Tabl
Note 8 - Credit Agreement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Interest Expense and Commitment Fees on Debt Instrument [Table Text Block] | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Interest expense $ 2,230 $ 1,204 $ 5,072 $ 3,572 Commitment fees $ 325 $ 382 $ 1,036 $ 1,138 |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended 2017 2016 Net income $ 6,372 $ 14,046 Weighted average common shares outstanding-basic 83,923 84,101 Plus: net effect of dilutive stock options and restricted stock units 1,807 752 Weighted average common shares outstanding-diluted 85,730 84,853 Net income per common share-basic $ 0.08 $ 0.17 Net income per common share-diluted $ 0.07 $ 0.17 Nine Months Ended 2017 2016 Net income $ 14,331 $ 28,486 Weighted average common shares outstanding-basic 83,778 84,338 Plus: net effect of dilutive stock options and restricted stock units 1,808 1,655 Weighted average common shares outstanding-diluted 85,586 85,993 Net income per common share-basic $ 0.17 $ 0.34 Net income per common share-diluted $ 0.17 $ 0.33 |
Note 10 - Stock-based Compens27
Note 10 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of services-compensation $ 1,851 $ 399 $ 5,353 $ 3,540 Selling, general and administrative 5,531 1,703 11,408 7,207 Total $ 7,382 $ 2,102 $ 16,761 $ 10,747 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Weighted Aggregate Outstanding balance at December 31, 2016 5,191 $ 17.35 Granted 984 18.95 Exercised (174 ) 16.09 Forfeitures (129 ) 16.04 Expired (159 ) 22.99 Outstanding balance at September 30, 2017 5,713 17.50 5.25 $ 18,601 Expected to vest at September 30, 2017 1,993 16.06 6.39 7,885 Exercisable at September 30, 2017 2,755 $ 18.85 3.88 $ 7,352 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended 2017 2016 Expected dividend yield ― ― Risk-free interest rate 1.74 % 1.20 % Expected volatility 44.19 % 43.91 % Expected life (years) 5.00 4.90 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number of Weighted Average Outstanding balance at December 31, 2016 1,413 $ 16.44 Granted 599 18.90 Vesting of restricted stock units, net of units withheld for taxes (363 ) 16.45 Units withheld for taxes (155 ) 16.45 Forfeitures (47 ) 17.16 Outstanding balance at September 30, 2017 1,447 $ 17.57 |
Note 1 - Business and Summary28
Note 1 - Business and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 33 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2019USD ($) | |
Number of Businesses | 1 | 1 | |||
Income Tax Expense (Benefit) | $ 3,394 | $ (3,412) | $ 9,302 | $ 4,326 | |
Accounting Standards Update 2016-09 [Member] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 1,900 | 1,900 | |||
Income Tax Expense (Benefit) | $ (1,900) | $ (1,900) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $ / shares | $ 0.02 | $ 0.02 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ / shares | $ 0.02 | $ 0.02 | |||
Increase to Net Cash From Operations and Net Cash Used in Financing [Member] | Nine Months Ended September 30, 2016 [Member] | Accounting Standards Update 2016-09 [Member] | |||||
Prior Period Reclassification Adjustment | $ 1,900 |
Note 2 - Business Combination29
Note 2 - Business Combinations (Details Textual) - Eliza Holding Corp [Member] - USD ($) $ in Millions | Apr. 17, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2017 |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Payments to Acquire Businesses, Gross | $ 171.6 | |||
Business Acquisition, Funding Source, Cash on Hand, Percentage | 75.00% | |||
Business Acquisition, Funding Source, Existing Credit Line, Percentage | 25.00% | |||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ 8.9 | |||
Business Combination, Deferred Tax Liabilities, Purchase Accounting Adjustment | 3.4 | |||
Goodwill, Purchase Accounting Adjustments | $ (5.5) | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 17.5 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 36 years | 15 years |
Note 2 - Business Combination30
Note 2 - Business Combinations - Preliminary Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill | $ 485,540 | $ 379,716 |
Eliza Holding Corp [Member] | ||
Cash and cash equivalents | 435 | |
Accounts receivable | 10,748 | |
Prepaid expenses | 1,427 | |
Property and equipment | 1,146 | |
Intangible assets | 76,240 | |
Goodwill | 105,677 | |
Other assets | 63 | |
Accounts payable | (2,620) | |
Deferred tax liability | (19,450) | |
Other liabilities | (2,057) | |
Total purchase price | $ 171,609 |
Note 2 - Business Combination31
Note 2 - Business Combinations - Preliminary Purchase Price Allocated to the Intangibles Acquired (Details) - Eliza Holding Corp [Member] $ in Thousands | 5 Months Ended |
Sep. 30, 2017USD ($) | |
Fair value of intangibles acquired | $ 76,240 |
Customer Relationships [Member] | |
Fair value of intangibles acquired | $ 56,200 |
Intangibles acquired, useful life (Year) | 15 years |
Intellectual Property [Member] | |
Fair value of intangibles acquired | $ 19,600 |
Intangibles acquired, useful life (Year) | 6 years |
Trade Names [Member] | |
Fair value of intangibles acquired | $ 310 |
Intangibles acquired, useful life (Year) | 1 year 182 days |
Restrictive Covenant [Member] | |
Fair value of intangibles acquired | $ 130 |
Intangibles acquired, useful life (Year) | 1 year |
Note 2 - Business Combination32
Note 2 - Business Combinations - Acquisition Costs (Details) - Cost of Services [Member] - Eliza Holding Corp [Member] $ in Thousands | Apr. 17, 2017USD ($) |
Acquisition-related costs | $ 4,532 |
Other Operating Expenses, Consulting Fees [Member] | |
Acquisition-related costs | 3,515 |
Other Operating Expenses, Legal Fees [Member] | |
Acquisition-related costs | 832 |
Other Operating Expenses, Transaction Costs [Member] | |
Acquisition-related costs | $ 185 |
Note 3 - Accounts Receivable 33
Note 3 - Accounts Receivable and Allowance - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable | $ 189,976 | $ 184,354 | |
Allowance | (11,276) | (10,772) | $ (11,464) |
Accounts receivable, net | $ 178,700 | $ 173,582 |
Note 3 - Accounts Receivable 34
Note 3 - Accounts Receivable and Allowance - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Balance--beginning of period | $ 10,772 | $ 11,464 |
Provision | 11,509 | 21,583 |
Charge-offs | (11,005) | (22,383) |
Recoveries | 108 | |
Balance--end of period | $ 11,276 | $ 10,772 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization of Intangible Assets | $ 6,200 | $ 5,000 | $ 15,947 | $ 15,101 |
Note 4 - Intangible Assets - Su
Note 4 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Gross value | $ 197,499 | $ 121,259 |
Accumulated amortization | (99,409) | (83,462) |
Net carrying amount | 98,090 | 37,797 |
Customer Relationships [Member] | ||
Gross value | 159,290 | 103,090 |
Accumulated amortization | (84,106) | (71,914) |
Net carrying amount | $ 75,184 | $ 31,176 |
Customer Relationships [Member] | Minimum [Member] | ||
Useful life (Year) | 5 years | 5 years |
Customer Relationships [Member] | Maximum [Member] | ||
Useful life (Year) | 15 years | 10 years |
Trade Names [Member] | ||
Gross value | $ 16,246 | $ 15,936 |
Accumulated amortization | (13,263) | (11,393) |
Net carrying amount | $ 2,983 | $ 4,543 |
Trade Names [Member] | Minimum [Member] | ||
Useful life (Year) | 1 year 182 days | 3 years |
Trade Names [Member] | Maximum [Member] | ||
Useful life (Year) | 5 years | 5 years |
Intellectual Property [Member] | ||
Gross value | $ 21,700 | $ 2,100 |
Accumulated amortization | (1,952) | (140) |
Net carrying amount | $ 19,748 | $ 1,960 |
Intellectual Property [Member] | Minimum [Member] | ||
Useful life (Year) | 3 years | 3 years |
Intellectual Property [Member] | Maximum [Member] | ||
Useful life (Year) | 7 years | 7 years |
Restrictive Covenant [Member] | ||
Gross value | $ 263 | $ 133 |
Accumulated amortization | (88) | (15) |
Net carrying amount | $ 175 | $ 118 |
Restrictive Covenant [Member] | Minimum [Member] | ||
Useful life (Year) | 1 year | 3 years |
Restrictive Covenant [Member] | Maximum [Member] | ||
Useful life (Year) | 5 years | 5 years |
Note 4 - Intangible Assets - Ex
Note 4 - Intangible Assets - Expected Amortization Expense (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Remainder of 2017 | $ 5,944 |
2,018 | 22,921 |
2,019 | 8,322 |
2,020 | 6,868 |
2,021 | 6,540 |
Thereafter | $ 47,495 |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Balance | $ 379,716 | |
Balance | $ 485,540 | 485,540 |
Eliza Holding Corp [Member] | ||
Eliza acquisition | 105,677 | |
Essette adjustment | (5,500) | |
Balance | $ 105,677 | 105,677 |
Essette, Inc. [Member] | ||
Essette adjustment | $ 147 |
Note 5 - Accounts Payable, Ac39
Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts payable, trade | $ 10,686 | $ 13,847 |
Accrued compensation and other | 17,062 | 28,507 |
Accrued operating expenses | 19,736 | 17,048 |
Total accounts payable, accrued expenses and other liabilities | $ 47,484 | $ 59,402 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent | 39.40% | 13.20% | |
Effective Income Tax Rate Reconciliation, Excluding Equity Compensation and Acquisition Costs and Deferred Adjustments, Percent | 38.60% | ||
Unrecognized Tax Benefits | $ 7.9 | $ 7.4 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0.7 | $ 0.6 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0.1 | $ 0.3 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 0.6 |
Note 7 - Estimated Liability 41
Note 7 - Estimated Liability for Appeals (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Estimated Liability for Appeals | $ 30,754 | $ 30,755 |
Estimated Liability for Appeals, Amount Adjudicated | 18,800 | 17,300 |
Estimated Liability for Appeals, Amount Probable of Being Returned | 9,800 | 11,100 |
Estimated Liability for Appeals, Commercial Customers Claim Findings, Adjudicated in Favor of Providers | $ 2,200 | $ 2,400 |
Note 7 - Estimated Liability 42
Note 7 - Estimated Liability for Appeals - Activity in Estimated Liability for Appeals (Details) - Estimated Liability for Appeals and Estimated Allowance for Appeals [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Balance--beginning of period | $ 11,126 |
Provision | 83 |
Appeals found in providers favor | (1,443) |
Balance--end of period | $ 9,766 |
Note 8 - Credit Agreement (Deta
Note 8 - Credit Agreement (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2013USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Amortization of Debt Issuance Costs | $ 1,563 | $ 1,563 | ||||
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | ||||||
Repayments of Long-term Lines of Credit | 0 | |||||
Long-term Line of Credit | $ 240,000 | 240,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | |||||
Line of Credit Facility, Amount of Incremental Credit Facilities Under Specified Circumstances | $ 75,000 | |||||
Debt Issuance Costs, Net | 1,200 | 1,200 | $ 2,800 | |||
Amortization of Debt Issuance Costs | 500 | $ 500 | 1,500 | $ 1,500 | ||
Letters of Credit Outstanding, Amount | $ 3,000 | $ 3,000 | ||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Federal Funds Effective Swap Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | One-month LIBOR Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Minimum [Member] | ||||||
Line of Credit Facility, Additional Amount of Incremental Credit Facilities Under Specified Circumstances | $ 25,000 | |||||
Debt Instrument, Covenant, Interest Coverage Ratio | 3 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Minimum [Member] | One-month LIBOR Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument, Secured Leverage Ratio | 2.5 | |||||
Debt Instrument, Covenant, Consolidated Leverage Ratio | 3.25 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Maximum [Member] | One-month LIBOR Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Note 8 - Credit Agreement - Int
Note 8 - Credit Agreement - Interest Expense and Commitment Fees on Unused Portion of Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest expense | $ 2,230 | $ 1,204 | $ 5,072 | $ 3,572 |
Commitment fees | $ 325 | $ 382 | $ 1,036 | $ 1,138 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,642,548 | 1,801,989 | 2,132,017 | 2,577,286 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 84,630 | 35,738 | 63,452 | 25,036 |
Note 9 - Earnings Per Share - B
Note 9 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 6,372 | $ 14,046 | $ 14,331 | $ 28,486 |
Basic (in shares) | 83,923 | 84,101 | 83,778 | 84,338 |
Plus: net effect of dilutive stock options and restricted stock units (in shares) | 1,807 | 752 | 1,808 | 1,655 |
Weighted average common shares outstanding-diluted (in shares) | 85,730 | 84,853 | 85,586 | 85,993 |
Net income per common share -- basic (in dollars per share) | $ 0.08 | $ 0.17 | $ 0.17 | $ 0.34 |
Net income per common share -- diluted (in dollars per share) | $ 0.07 | $ 0.17 | $ 0.17 | $ 0.33 |
Note 10 - Stock-based Compens47
Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allocated Share-based Compensation Expense | $ 7,382 | $ 2,102 | $ 16,761 | $ 10,747 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 40,734 | 211,774 | 173,539 | 510,466 |
Proceeds from Stock Options Exercised | $ 2,580 | $ 2,940 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 300 | $ 2,200 | 600 | 6,300 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 11,900 | $ 11,900 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 328 days | |||
Income Tax Expense (Benefit) | 3,394 | (3,412) | $ 9,302 | $ 4,326 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.68 | $ 5.49 | ||
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | 3,200 | 1,200 | $ 7,100 | $ 5,300 |
Proceeds from Stock Options Exercised | 800 | 2,400 | 2,700 | 3,600 |
Income Tax Expense (Benefit) | (300) | 500 | (200) | 1,900 |
Restricted Stock Units (RSUs) [Member] | ||||
Allocated Share-based Compensation Expense | $ 4,200 | $ 900 | $ 9,700 | $ 5,400 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 59,784 | 8,603 | 599,441 | 598,531 |
Stock Granted, Value, Share-based Compensation, Gross | $ 1,000 | $ 200 | $ 11,300 | $ 8,400 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,269,271 | 1,269,271 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 14,200 | $ 14,200 |
Note 10 - Stock-based Compens48
Note 10 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation expense | $ 7,382 | $ 2,102 | $ 16,761 | $ 10,747 |
Cost of Sales [Member] | ||||
Stock-based compensation expense | 1,851 | 399 | 5,353 | 3,540 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense | $ 5,531 | $ 1,703 | $ 11,408 | $ 7,207 |
Note 10 - Stock-based Compens49
Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of options outstanding (in shares) | 5,191,000 | |||
Weighted average exercise price outstanding (in dollars per share) | $ 17.35 | |||
Number of options granted (in shares) | 984,000 | |||
Weighted average exercise price granted (in dollars per share) | $ 18.95 | |||
Number of options exercised (in shares) | (40,734) | (211,774) | (173,539) | (510,466) |
Weighted average exercise price exercised (in dollars per share) | $ 16.09 | |||
Number of options forfeitures (in shares) | (129,000) | |||
Weighted average exercise price forfeitures (in dollars per share) | $ 16.04 | |||
Number of options expired (in shares) | (159,000) | |||
Weighted average exercise price expired (in dollars per share) | $ 22.99 | |||
Number of options outstanding (in shares) | 5,713,000 | 5,713,000 | ||
Weighted average exercise price outstanding (in dollars per share) | $ 17.50 | $ 17.50 | ||
Weighted average remaining contractual terms outstanding (Year) | 5 years 91 days | |||
Aggregate intrinsic value outstanding | $ 18,601 | $ 18,601 | ||
Number of options expected to vest (in shares) | 1,993,000 | 1,993,000 | ||
Weighted average exercise price expected to vest (in dollars per share) | $ 16.06 | $ 16.06 | ||
Weighted average remaining contractual terms expected to vest (Year) | 6 years 142 days | |||
Aggregate intrinsic value expected to vest | $ 7,885 | $ 7,885 | ||
Number of options exercisable (in shares) | 2,755,000 | 2,755,000 | ||
Weighted average exercise price exercisable (in dollars per share) | $ 18.85 | $ 18.85 | ||
Weighted average remaining contractual terms exercisable (Year) | 3 years 321 days | |||
Aggregate intrinsic value exercisable | $ 7,352 | $ 7,352 |
Note 10 - Stock-based Compens50
Note 10 - Stock-based Compensation - Weighted Average Assumptions Used in Valuation of Stock Options (Details) - Employee Stock Option [Member] | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Expected dividend yield | ||
Risk-free interest rate | 1.74% | 1.20% |
Expected volatility | 44.19% | 43.91% |
Expected life (Year) | 5 years | 4 years 328 days |
Note 10 - Stock-based Compens51
Note 10 - Stock-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of units outstanding (in shares) | 1,413,000 | |||
Weighted average grant date fair value outstanding (in dollars per share) | $ 16.44 | |||
Number of units granted (in shares) | 59,784 | 8,603 | 599,441 | 598,531 |
Weighted average grant date fair value granted (in dollars per share) | $ 18.90 | |||
Number of units vesting, net of units withheld for taxes (in shares) | (363,000) | |||
Weighted average grant date fair value vesting of restricted stock units, net of units withheld for taxes (in dollars per share) | $ 16.45 | |||
Number of units withheld for taxes (in shares) | (155,000) | |||
Weighted average grant date fair value units withheld for taxes (in dollars per share) | $ 16.45 | |||
Number of units forfeitures (in shares) | (47,000) | |||
Weighted average grant date fair value forfeitures (in dollars per share) | $ 17.16 | |||
Number of units outstanding (in shares) | 1,447,000 | 1,447,000 | ||
Weighted average grant date fair value outstanding (in dollars per share) | $ 17.57 | $ 17.57 |
Note 11 - Commitments and Con52
Note 11 - Commitments and Contingencies (Details Textual) $ in Millions | Nov. 03, 2017USD ($) |
Dennis Demetre and Lori Lewis v. HMS Holdings Corp [Member] | Subsequent Event [Member] | |
Loss Contingency, Damages Awarded, Value | $ 60 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details Textual) - Maximum [Member] - Subsequent Event [Member] $ in Millions | Nov. 01, 2017USD ($) |
Stock Repurchase Program, Authorized Amount | $ 50 |
Stock Repurchase Program, Period in Force | 2 years |