Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
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) | 83,463,382 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 88,127 | $ 83,313 |
Accounts receivable, net of allowance of $14,322 and $14,799, at June 30, 2018 and December 31, 2017, respectively | 193,114 | 189,460 |
Prepaid expenses | 16,526 | 16,589 |
Income tax receivable | 7,216 | 1,892 |
Deferred financing costs, net | 564 | 564 |
Other current assets | 266 | 836 |
Total current assets | 305,813 | 292,654 |
Property and equipment, net | 93,369 | 98,581 |
Goodwill | 487,617 | 487,617 |
Intangible assets, net | 78,708 | 91,482 |
Deferred financing costs, net | 1,955 | 2,237 |
Other assets | 2,618 | 2,589 |
Total assets | 970,080 | 975,160 |
Current liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 56,687 | 61,900 |
Estimated liability for appeals | 22,252 | 30,787 |
Total current liabilities | 78,939 | 92,687 |
Long-term liabilities: | ||
Revolving credit facility | 240,000 | 240,000 |
Net deferred tax liabilities | 18,089 | 21,989 |
Deferred rent | 4,539 | 4,852 |
Other liabilities | 9,874 | 9,403 |
Total long-term liabilities | 272,502 | 276,244 |
Total liabilities | 351,441 | 368,931 |
Commitments and contingencies | ||
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; 97,051,108 shares issued and 83,387,914 shares outstanding at June 30, 2018; 96,536,251 shares issued and 83,256,858 shares outstanding at December 31, 2017 | 970 | 965 |
Capital in excess of par value | 382,630 | 368,721 |
Retained earnings | 370,615 | 366,164 |
Treasury stock, at cost: 13,663,194 shares at June 30, 2018 and 13,279,393 shares at December 31, 2017 | (135,576) | (129,621) |
Total shareholders' equity | 618,639 | 606,229 |
Total liabilities and shareholders' equity | $ 970,080 | $ 975,160 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 14,322 | $ 14,799 |
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) | 97,051,108 | 96,536,251 |
Common stock, shares outstanding (in shares) | 83,387,914 | 83,256,858 |
Treasury cost, shares (in shares) | 13,663,194 | 13,279,393 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 146,791 | $ 133,313 | $ 288,216 | $ 247,046 |
Cost of services: | ||||
Compensation | 55,188 | 51,853 | 111,267 | 100,773 |
Information technology | 14,240 | 11,281 | 26,503 | 21,064 |
Occupancy | 4,014 | 4,230 | 8,397 | 7,777 |
Direct project expenses | 10,908 | 10,101 | 20,991 | 20,544 |
Other operating expenses | 7,051 | 6,562 | 13,616 | 13,765 |
Amortization of acquisition related software and intangible assets | 9,621 | 7,372 | 17,753 | 13,658 |
Total cost of services | 101,022 | 91,399 | 198,527 | 177,581 |
Selling, general and administrative expenses | 26,532 | 27,553 | 58,530 | 51,161 |
Settlement expense | 20,000 | 20,000 | ||
Total operating expenses | 147,554 | 118,952 | 277,057 | 228,742 |
Operating (loss)/income | (763) | 14,361 | 11,159 | 18,304 |
Interest expense | (3,034) | (2,339) | (5,682) | (4,625) |
Interest income | 188 | 33 | 308 | 188 |
(Loss)/income before income taxes | (3,609) | 12,055 | 5,785 | 13,867 |
Income taxes | (242) | 5,538 | 2,761 | 5,908 |
Net (loss)/income | $ (3,367) | $ 6,517 | $ 3,024 | $ 7,959 |
Basic income per common share: | ||||
Net (loss)/income per common share -- basic (in dollars per share) | $ (0.04) | $ 0.08 | $ 0.04 | $ 0.10 |
Diluted income per common share: | ||||
Net (loss)/income per common share -- diluted (in dollars per share) | $ (0.04) | $ 0.08 | $ 0.04 | $ 0.09 |
Weighted average shares: | ||||
Basic (in shares) | 83,231 | 83,921 | 83,222 | 83,708 |
Diluted (in shares) | 83,231 | 85,826 | 84,837 | 85,534 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 96,536,251 | 13,279,393 | |||
Balance at Dec. 31, 2017 | $ 965 | $ 368,721 | $ 366,164 | $ (129,621) | $ 606,229 |
Adoption of accounting standard (Note 1 and 3) (Accounting Standards Update 2014-09 [Member]) at Dec. 31, 2017 | 1,427 | 1,427 | |||
Net income | 3,024 | 3,024 | |||
Stock-based compensation expense | 14,208 | 14,208 | |||
Purchase of treasury stock (in shares) | 383,801 | ||||
Purchase of treasury stock | $ (5,955) | $ (5,955) | |||
Exercise of stock options (in shares) | 151,034 | 151,034 | |||
Exercise of stock options | $ 2 | 2,388 | $ 2,390 | ||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 363,823 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | $ 3 | (2,687) | (2,684) | ||
Balance (in shares) at Jun. 30, 2018 | 97,051,108 | 13,663,194 | |||
Balance at Jun. 30, 2018 | $ 970 | $ 382,630 | $ 370,615 | $ (135,576) | $ 618,639 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net income | $ 3,024,000 | $ 7,959,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and software | 16,758,000 | 12,927,000 |
Amortization of intangible assets | 12,774,000 | 9,740,000 |
Amortization of deferred financing costs | 282,000 | 1,042,000 |
Stock-based compensation expense | 14,208,000 | 9,380,000 |
Deferred income taxes | (3,900,000) | 1,265,000 |
Change in fair value of contingent consideration | 500,000 | |
Release of estimated liability for appeals | (8,436,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,654,000) | (9,039,000) |
Prepaid expenses | 63,000 | 149,000 |
Other current assets | 570,000 | 526,000 |
Other assets | (29,000) | 149,000 |
Income taxes receivable / (payable) | (5,324,000) | (6,180,000) |
Accounts payable, accrued expenses and other liabilities | (2,546,000) | (8,196,000) |
Estimated liability for appeals | (99,000) | 518,000 |
Net cash provided by operating activities | 23,691,000 | 20,740,000 |
Investing activities: | ||
Acquisition of a business, net of cash acquired | (171,174,000) | |
Purchases of property and equipment | (2,455,000) | (8,881,000) |
Investment in capitalized software | (10,173,000) | (6,626,000) |
Net cash used in investing activities | (12,628,000) | (186,681,000) |
Financing activities: | ||
Proceeds from exercise of stock options | 2,390,000 | 1,986,000 |
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation | (2,684,000) | (2,874,000) |
Payments on capital lease obligations | (5,000) | |
Proceeds from credit facility | 42,204,000 | |
Purchases of treasury stock | (5,955,000) | |
Net cash (used in)/provided by financing activities | (6,249,000) | 41,311,000 |
Net increase (decrease) in cash and cash equivalents | 4,814,000 | (124,630,000) |
Cash and Cash Equivalents | ||
Cash and cash equivalents at beginning of year | 83,313,000 | 175,999,000 |
Cash and cash equivalents at end of period | 88,127,000 | 51,369,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 11,472,000 | 10,656,000 |
Cash paid for interest | 4,916,000 | 3,451,000 |
Supplemental disclosure of non-cash activities: | ||
Change in balance of accrued property and equipment purchases | $ 1,082,000 | $ (1,313,000) |
Note 1 - Business and Summary o
Note 1 - Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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. We use innovative technology, extensive data services and powerful analytics to deliver coordination of benefits, payment integrity and care management and consumer engagement solutions to help healthcare payers improve financial performance and clinical outcomes. We provide coordination of benefits services to government and commercial healthcare payers and sponsors to ensure that the responsible party pays healthcare claims. Our payment integrity services ensure healthcare claims billed are accurate and appropriate, and our care management and consumer engagement technology helps risk-bearing organizations to better engage with and manage the care delivered to their members. Together these various services help customers recover erroneously paid amounts from liable third one The accompanying consolidated financial statements and notes are unaudited. Accordingly, they do not not may December 31, 2017 2017 10 December 31, 2017 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. These unaudited consolidated financial statements include HMS accounts and transactions and those of the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Summary of Significant Accounting Policies There have been no 2017 10 Recently Adopted Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 January 1, 2018 not 2014 09 not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . 2016 15 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” 2017 01 December 15, 2017, January 1, 2018. not In May 2017, No. 2017 09, Compensation – Stock Compensation (Topic 718 2017 09” 2017 09 not 1 2 3 2017 09 December 15, 2017, January 1, 2018. not Recently Issued Accounting Pronouncements In February 2016, No. 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not third 2018 fourth 2018. In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2 2 1 2 not December 15, 2019. January 1, 2017. not In June 2018, No. 2018 07, Compensation – Stock Compensation (Topic 718 2018 07” 2018 07 2018 07 December 15, 2018, not |
Note 2 - Fair Value of Financia
Note 2 - Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 2. Fair Value of Financial Instruments Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term credit facility is carried at cost, which, due to the variable interest rate associated with the revolving credit facility, approximates its fair value. The Company has no 1 2 no 1 2 June 30, 2018 $35,000 3 December 31, 2017. |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition The Company’s revenue disaggregated by product for the three six June 30 (in thousands) Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Coordination of benefits $ 100,754 $ 98,454 $ 192,507 $ 186,946 Analytical services 46,037 34,859 95,709 60,100 Total $ 146,791 $ 133,313 $ 288,216 $ 247,046 Coordination of benefits Coordination of benefits revenue is derived from contracts with state governments and Medicaid managed care plans that typically span 3 5 third not not Analytical services The Company’s analytical services revenue consists mostly of payment integrity services but also care management and consumer engagement services. Payment integrity services revenue is derived from contracts with federal and state governments, commercial health plans and other at-risk entities that can span several years with the option to renew. Types of service contracts could include: (a) services designed to ensure that healthcare payments are accurate and appropriate; and (b) the identification of over/(under)payments or inaccurate charges based on a review of medical records. Most of these types of service contracts contain multiple promises, all of which are not not Care management and consumer engagement services revenue is derived from contracts with health plans and other risk-bearing entities that can span several years with the option to renew. Types of service contracts could include: (a) programs designed to improve member engagement; and (b) outreach services designed to improve clinical outcomes. Most of these types of service contracts contain multiple promises, all of which are not 1 2 606, December 31, 2017, $1.4 January 1, 2018 606. $5.4 $6.4 June 30, 2018 December 31, 2017, 30, 45, 60 Contract modifications are routine in nature and often done to account for changes in the contract specifications or requirements. In most instances, contract modifications are for services that are not |
Note 4 - Accounts Receivable an
Note 4 - Accounts Receivable and Accounts Receivable Allowance | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Accounts Receivable and Allowance for Doubtful Accounts [Text Block] | 4. Accounts Receivable and Accounts Receivable Allowance The Company’s accounts receivable, net, consisted of the following (in thousands) June 30, 2018 December 31, 2017 Accounts receivable $ 207,436 $204,259 Allowance (14,322 ) (14,799) Accounts receivable, net $ 193,114 $189,460 We record an accounts receivable allowance, based on historical patterns of billing adjustments, length of operating and collection cycle and customer negotiations, behaviors and payment patterns. Changes in these estimates are recorded to revenue in the period of change. A summary of the activity in the accounts receivable allowance was as follows (in thousands) June 30, 2018 December 31, 2017 Balance--beginning of period $ 14,799 $ 10,772 Provision 10,332 20,233 Charge-offs (10,809 ) (16,206 ) Balance--end of period $ 14,322 $ 14,799 |
Note 5 - Acquisitions
Note 5 - Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 5. Acquisition On April 17, 2017, 100% $171.6 75% 25% The allocation of the purchase price to the fair value of the assets acquired and the liabilities assumed as of April 17, 2017, in thousands Cash and cash equivalents $ 435 Accounts receivable 8,902 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 107,754 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,681 ) 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 15 years $ 56,200 Intellectual property 6 years 19,600 Trade name 1.5 years 310 Restrictive covenants 1 year 130 Fair value of intangibles acquired $ 76,240 Acquisition costs recorded in the second 2017 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 The financial results of Eliza have been included in the Company’s consolidated financial statements since the date of acquisition. |
Note 6 - Intangible Assets and
Note 6 - Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Intangible Assets and Goodwill Intangible assets consisted of the following ( in thousands, except for weighted average amortization period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period June 30, 2018 Customer relationships $ 156,790 $ (96,249 ) $ 60,541 11.8 years Trade names 16,246 (15,097 ) 1,149 0.5 years Intellectual property 21,700 (4,733 ) 16,967 4.5 years Restrictive covenants 263 (212 ) 51 1.1 years Total $ 194,999 $ (116,291 ) $ 78,708 Gross Carrying Amount Accumulated Net Carrying Amount Weighted Average Amortization Period December 31, 2017 Customer relationships $ 159,290 $ (89,106 ) $ 70,184 11.3 years Trade names 16,246 (13,916 ) 2,330 1 year Intellectual property 21,700 (2,874 ) 18,826 5.2 years Restrictive covenants 263 (121 ) 142 1.3 years Total $ 197,499 $ (106,017 ) $ 91,482 Amortization expense of intangible assets is expected to approximate the following (in thousands): Year ending December 31, 2018 $ 11,579 2019 9,183 2020 7,664 2021 7,197 2022 7,197 Thereafter 35,888 Total $ 78,708 For the three June 30, 2018 2017, $6.7 $4.5 six June 30, 2018 2017, $12.8 $9.7 The Company assesses goodwill for impairment on an annual basis as of June 30th not June 30, 2018 first three 3 no two not not may There were no December 31, 2017, 2016 2015. no six June 30, 2018. |
Note 7 - Accounts Payable, Accr
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 7. Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands) June 30, 2018 December 31, 2017 Accounts payable, trade $ 10,741 $ 19,330 Accrued compensation and other 26,448 24,072 Accrued operating expenses 19,498 18,498 Total accounts payable, accrued expenses and other liabilities $ 56,687 $ 61,900 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Taxes The Company’s effective tax rate increased to 47.7% six June 30, 2018 42.6% six June 30, 2017. six June 30, 2018 13, six June 30, 2018, 13, The effective tax rate for the six June 30, 2018 August 6, 2018. nine may November 2, 2017. 2017 fourth 2018. Included in Other Liabilities on the Consolidated Balance Sheets, are the total amount of unrecognized tax benefits of approximately $8.7 $8.2 June 30, 2018 December 31, 2017, $0.9 $0.6 June 30, 2018 December 31, 2017, six June 30, 2018 2017 $0.3 may $1.9 twelve HMS files income tax returns with the U.S. Federal government and various state and local jurisdictions. HMS is no 2012. 2013 2014 no |
Note 9 - Estimated Liability fo
Note 9 - Estimated Liability for Appeals | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Estimated Liability and Allowance for Appeals [Text Block] | 9. Estimated Liability For Appeals Under the Company’s contracts with certain commercial health plan customers and its Medicare RAC contracts with CMS (included within the Company’s analytical services product revenue), providers have the right to appeal HMS claim findings and to pursue additional appeals if the initial appeal is found in favor of HMS’s customer. The appeal process established under the Medicare RAC contract with CMS includes five may The Company’s original Medicare RAC contract with CMS expired on January 31, 2018. $8.4 first 2018. The total estimated liability for appeals balance of $22.3 $30.8 June 30, 2018 December 31, 2017, $19.4 $19.3 $0.0 $8.5 $2.9 $3.2 A summary of the activity in the estimated liability for appeals related to the Company’s original Medicare RAC contract was as follows (in thousands) June 30, 2018 Balance--beginning of period $ 8,544 Provision - Appeals found in providers favor (108 ) Release of liability (8,436 ) Balance--end of period $ - |
Note 10 - Credit Agreement
Note 10 - Credit Agreement | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. Credit Agreement In December 2017, $500 five December 2022 ( $50 $25 may one not $120 100% first not 3.00:1.00, As of June 30, 2018 December 31, 2017, $240.0 No six June 30, 2018. Borrowings under the Amended Revolving Facility bear interest at a rate equal to, at the Company’s election (except with respect to swingline borrowings, which will accrue interest based only at the base rate), either: ▪ a base rate determined by reference to the greatest of (a) the prime or base commercial lending rate of the administrative agent as in effect on the relevant date, (b) the federal funds effective rate plus 0.50% one 1.00%, plus 0.50% 1.00% ▪ an adjusted LIBO Rate, equal to the LIBO Rate for the applicable interest period multiplied by the statutory reserve rate (equal to ( x one one plus 1.50% 2.00% In addition to paying interest on the outstanding principal, the Company is required to pay unused commitment fees on the Amended Revolving Facility during the term of the Credit Agreement ranging from 0.375% 0.250% 0.125% The Amended Revolving Facility is secured, subject to certain customary carve-outs and exceptions, by a first two 3:00:1:00, 4.75:1.00 December 2019 4.25:1.00 January 2020. 5.25:1.00 four June 30, 2018, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest expense $ 2,627 $ 1,469 $ 4,697 $ 2,843 Commitment fees 239 333 477 711 As of June 30, 2018 December 31, 2017, $2.5 $2.8 six June 30, 2018 2017, $0.3 $1.0 Although HMS expects that operating cash flows will continue to be a primary source of liquidity for the Company’s operating needs, the Amended Revolving Facility may not |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11. Earnings Per Share 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income $ (3,367 ) $ 6,517 $ 3,024 $ 7,959 Weighted average common shares outstanding-basic 83,231 83,921 83,222 83,708 Plus: net effect of dilutive stock options and restricted stock units - 1,905 1,615 1,826 Weighted average common shares outstanding-diluted 83,231 85,826 84,837 85,534 Net (loss)/income per common share-basic $ (0.04 ) $ 0.08 $ 0.04 $ 0.10 Net (loss)/income per common share-diluted $ (0.04 ) $ 0.08 $ 0.04 $ 0.09 For the three June 30, 2018, 2,552,862 626,341 three June 30, 2017, 1,804,272 51,836 not For the six June 30, 2018 2017, 2,738,783 1,888,257 not six June 30, 2018 2017, 106,501 63,247 not |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Stock-Based Compensation (a) Stock-Based Compensation Expense Total stock-based compensation expense in the Company’s unaudited Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of services-compensation $ 1,673 $ 1,462 $ 4,236 $ 3,503 Selling, general and administrative 3,041 2,532 9,972 5,877 Total $ 4,714 $ 3,994 $ 14,208 $ 9,380 (b) Stock Options Stock-based compensation expense related to stock options was approximately $2.1 $1.7 three June 30, 2018 2017, $6.1 $3.9 six June 30, 2018 2017, Presented below is a summary of stock option activity for the six June 30, 2018 ( in thousands except for weighted average exercise price and weighted average remaining contractual terms Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Terms Aggregate Intrinsic Value Outstanding balance at December 31, 2017 5,554 $ 17.35 Granted 1,010 19.58 Exercised (151 ) 15.81 Forfeitures (26 ) 16.43 Expired (27 ) 22.14 Outstanding balance at June 30, 2018 6,360 17.78 5.37 26,785 Expected to vest at June 30, 2018 1,633 17.68 8.00 6,449 Exercisable at June 30, 2018 3,877 $ 17.87 3.72 16,929 During the three June 30, 2018 2017, 87,230 132,128 $2.2 $2.0 three June 30, 2018 2017 $0.8 $0.6 six June 30, 2018 2017, 151,034 132,805 $2.4 $2.0 six June 30, 2018 2017 $0.8 $0.6 As of June 30, 2018, $9.6 2.3 The weighted-average grant date fair value per share of the stock options granted during the six June 30, 2018 2017 $7.52 $7.73, Six Months Ended June 30, 2018 2017 Expected dividend yield 0% 0% Risk-free interest rate 2.68% 1.74% Expected volatility 42.43% 44.23% Expected life (years) 6.00 5.00 The total tax benefits recognized on stock-based compensation for the three six June 30, 2018 2017 $2.5 $3.6 (c) Restricted Stock Units Stock-based compensation expense related to restricted stock units was approximately $2.6 $2.2 three June 30, 2018 2017, $8.1 $5.5 six June 30, 2018 2017, Presented below is a summary of restricted stock units activity for the six June 30, 2018 (in thousands, except for weighted average grant date fair value per unit): Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2017 1,346 $ 17.65 Granted 761 16.72 Vesting of restricted stock units, net of units withheld for taxes (364 ) 16.93 Units withheld for taxes (161 ) 16.93 Forfeitures (26 ) 16.89 Outstanding balance at June 30, 2018 1,556 $ 19.98 For the three June 30, 2018 2017, 62,259 536,023 $0.9 $10.2 six June 30, 2018 2017, 761,083 539,657 $12.7 $10.3 As of June 30, 2018, 1,330,734 $13.9 1.38 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and Contingencies In July 2012, second two one June 2016, July 2017, one November 3, 2017, $60 March 14, 2018, June 27, 2018, $20 July 5, 2018, In February 2018, March 2018 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 14 - Subsequent Events
Note 14 - Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 14. Subsequent Events 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) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | (b) Summary of Significant Accounting Policies There have been no 2017 10 Recently Adopted Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 January 1, 2018 not 2014 09 not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . 2016 15 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” 2017 01 December 15, 2017, January 1, 2018. not In May 2017, No. 2017 09, Compensation – Stock Compensation (Topic 718 2017 09” 2017 09 not 1 2 3 2017 09 December 15, 2017, January 1, 2018. not Recently Issued Accounting Pronouncements In February 2016, No. 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not third 2018 fourth 2018. In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2 2 1 2 not December 15, 2019. January 1, 2017. not In June 2018, No. 2018 07, Compensation – Stock Compensation (Topic 718 2018 07” 2018 07 2018 07 December 15, 2018, not |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Coordination of benefits $ 100,754 $ 98,454 $ 192,507 $ 186,946 Analytical services 46,037 34,859 95,709 60,100 Total $ 146,791 $ 133,313 $ 288,216 $ 247,046 |
Note 4 - Accounts Receivable 23
Note 4 - Accounts Receivable and Accounts Receivable Allowance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2018 December 31, 2017 Accounts receivable $ 207,436 $204,259 Allowance (14,322 ) (14,799) Accounts receivable, net $ 193,114 $189,460 |
Movement in Valuation Allowances and Reserves Roll Forward [Table Text Block] | June 30, 2018 December 31, 2017 Balance--beginning of period $ 14,799 $ 10,772 Provision 10,332 20,233 Charge-offs (10,809 ) (16,206 ) Balance--end of period $ 14,322 $ 14,799 |
Note 5 - Acquisitions (Tables)
Note 5 - Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash and cash equivalents $ 435 Accounts receivable 8,902 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 107,754 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,681 ) 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 15 years $ 56,200 Intellectual property 6 years 19,600 Trade name 1.5 years 310 Restrictive covenants 1 year 130 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 6 - Intangible Assets an25
Note 6 - Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period June 30, 2018 Customer relationships $ 156,790 $ (96,249 ) $ 60,541 11.8 years Trade names 16,246 (15,097 ) 1,149 0.5 years Intellectual property 21,700 (4,733 ) 16,967 4.5 years Restrictive covenants 263 (212 ) 51 1.1 years Total $ 194,999 $ (116,291 ) $ 78,708 Gross Carrying Amount Accumulated Net Carrying Amount Weighted Average Amortization Period December 31, 2017 Customer relationships $ 159,290 $ (89,106 ) $ 70,184 11.3 years Trade names 16,246 (13,916 ) 2,330 1 year Intellectual property 21,700 (2,874 ) 18,826 5.2 years Restrictive covenants 263 (121 ) 142 1.3 years Total $ 197,499 $ (106,017 ) $ 91,482 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 2018 $ 11,579 2019 9,183 2020 7,664 2021 7,197 2022 7,197 Thereafter 35,888 Total $ 78,708 |
Note 7 - Accounts Payable, Ac26
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2018 December 31, 2017 Accounts payable, trade $ 10,741 $ 19,330 Accrued compensation and other 26,448 24,072 Accrued operating expenses 19,498 18,498 Total accounts payable, accrued expenses and other liabilities $ 56,687 $ 61,900 |
Note 9 - Estimated Liability 27
Note 9 - Estimated Liability for Appeals (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Valuation and Qualifying Accounts Disclosure [Table Text Block] | June 30, 2018 Balance--beginning of period $ 8,544 Provision - Appeals found in providers favor (108 ) Release of liability (8,436 ) Balance--end of period $ - |
Note 10 - Credit Agreement (Tab
Note 10 - Credit Agreement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Interest Expense and Commitment Fees on Debt Instrument [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest expense $ 2,627 $ 1,469 $ 4,697 $ 2,843 Commitment fees 239 333 477 711 |
Note 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income $ (3,367 ) $ 6,517 $ 3,024 $ 7,959 Weighted average common shares outstanding-basic 83,231 83,921 83,222 83,708 Plus: net effect of dilutive stock options and restricted stock units - 1,905 1,615 1,826 Weighted average common shares outstanding-diluted 83,231 85,826 84,837 85,534 Net (loss)/income per common share-basic $ (0.04 ) $ 0.08 $ 0.04 $ 0.10 Net (loss)/income per common share-diluted $ (0.04 ) $ 0.08 $ 0.04 $ 0.09 |
Note 12 - Stock-based Compens30
Note 12 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of services-compensation $ 1,673 $ 1,462 $ 4,236 $ 3,503 Selling, general and administrative 3,041 2,532 9,972 5,877 Total $ 4,714 $ 3,994 $ 14,208 $ 9,380 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Terms Aggregate Intrinsic Value Outstanding balance at December 31, 2017 5,554 $ 17.35 Granted 1,010 19.58 Exercised (151 ) 15.81 Forfeitures (26 ) 16.43 Expired (27 ) 22.14 Outstanding balance at June 30, 2018 6,360 17.78 5.37 26,785 Expected to vest at June 30, 2018 1,633 17.68 8.00 6,449 Exercisable at June 30, 2018 3,877 $ 17.87 3.72 16,929 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended June 30, 2018 2017 Expected dividend yield 0% 0% Risk-free interest rate 2.68% 1.74% Expected volatility 42.43% 44.23% Expected life (years) 6.00 5.00 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2017 1,346 $ 17.65 Granted 761 16.72 Vesting of restricted stock units, net of units withheld for taxes (364 ) 16.93 Units withheld for taxes (161 ) 16.93 Forfeitures (26 ) 16.89 Outstanding balance at June 30, 2018 1,556 $ 19.98 |
Note 1 - Business and Summary31
Note 1 - Business and Summary of Significant Accounting Policies (Details Textual) | Jun. 30, 2018 |
Number of Businesses | 1 |
Note 2 - Fair Value of Financ32
Note 2 - Fair Value of Financial Instruments (Details Textual) | Jun. 30, 2018USD ($) |
Other Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | |
Business Combination, Contingent Consideration, Liability, Total | $ 35,000 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ 370,615 | $ 366,164 | |
Care Management and Consumer Engagement Services [Member] | Transferred over Time [Member] | Accounts payable, Accrued Expenses and Other liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Amount | $ 5,400 | $ 6,400 | |
Accounting Standards Update 2014-09 [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,400 | ||
Minimum [Member] | |||
Contracts With Customers, Term | 3 years | ||
Maximum [Member] | |||
Contracts With Customers, Term | 5 years |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Revenues Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 146,791 | $ 133,313 | $ 288,216 | $ 247,046 |
Coordination of Benefits [Member] | ||||
Revenues | 100,754 | 98,454 | 192,507 | 186,946 |
Analytical Services [Member] | ||||
Revenues | $ 46,037 | $ 34,859 | $ 95,709 | $ 60,100 |
Note 4 - Accounts Receivable 35
Note 4 - Accounts Receivable and Accounts Receivable Allowance - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable | $ 207,436 | $ 204,259 | |
Allowance | (14,322) | (14,799) | $ (10,772) |
Accounts receivable, net | $ 193,114 | $ 189,460 |
Note 4 - Accounts Receivable 36
Note 4 - Accounts Receivable and Accounts Receivable Allowance - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Balance--beginning of period | $ 14,799 | $ 10,772 |
Provision | 10,332 | 20,233 |
Charge-offs | (10,809) | (16,206) |
Balance--end of period | $ 14,322 | $ 14,799 |
Note 5 - Acquisitions (Details
Note 5 - Acquisitions (Details Textual) - Eliza Holding Corp [Member] $ in Millions | Apr. 17, 2017USD ($) |
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% |
Note 5 - Acquisition - Prelimin
Note 5 - Acquisition - Preliminary Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Apr. 17, 2017 |
Goodwill | $ 487,617 | $ 487,617 | |
Eliza Holding Corp [Member] | |||
Cash and cash equivalents | $ 435 | ||
Accounts receivable | 8,902 | ||
Prepaid expenses | 1,427 | ||
Property and equipment | 1,146 | ||
Intangible assets | 76,240 | ||
Goodwill | 107,754 | ||
Other assets | 63 | ||
Accounts payable | (2,620) | ||
Deferred tax liability | (19,681) | ||
Other liabilities | (2,057) | ||
Total purchase price | $ 171,609 |
Note 5 - Acquisition - Prelim39
Note 5 - Acquisition - Preliminary Purchase Price Allocated to the Intangibles Acquired (Details) - Eliza Holding Corp [Member] $ in Thousands | Apr. 17, 2017USD ($) |
Fair value of intangibles acquired | $ 76,240 |
Customer Relationships [Member] | |
Intangibles acquired, useful life (Year) | 15 years |
Fair value of intangibles acquired | $ 56,200 |
Intellectual Property [Member] | |
Intangibles acquired, useful life (Year) | 6 years |
Fair value of intangibles acquired | $ 19,600 |
Trade Names [Member] | |
Intangibles acquired, useful life (Year) | 1 year 182 days |
Fair value of intangibles acquired | $ 310 |
Restrictive Covenant [Member] | |
Intangibles acquired, useful life (Year) | 1 year |
Fair value of intangibles acquired | $ 130 |
Note 5 - Acquisition - Acquisit
Note 5 - Acquisition - 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 6 - Intangible Assets an41
Note 6 - Intangible Assets and Goodwill (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization of Intangible Assets, Total | $ 6,700 | $ 4,500 | $ 12,774 | $ 9,740 | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | ||||
Goodwill, Period Increase (Decrease), Total | $ 0 |
Note 6 - Intangible Assets an42
Note 6 - Intangible Assets and Goodwill - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Gross Carrying Amount | $ 194,999 | $ 197,499 |
Accumulated Amortization | (116,291) | (106,017) |
Net Carrying Amount | 78,708 | 91,482 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 156,790 | 159,290 |
Accumulated Amortization | (96,249) | (89,106) |
Net Carrying Amount | $ 60,541 | $ 70,184 |
Useful life (Year) | 11 years 292 days | 11 years 109 days |
Trade Names [Member] | ||
Gross Carrying Amount | $ 16,246 | $ 16,246 |
Accumulated Amortization | (15,097) | (13,916) |
Net Carrying Amount | $ 1,149 | $ 2,330 |
Useful life (Year) | 182 days | 1 year |
Intellectual Property [Member] | ||
Gross Carrying Amount | $ 21,700 | $ 21,700 |
Accumulated Amortization | (4,733) | (2,874) |
Net Carrying Amount | $ 16,967 | $ 18,826 |
Useful life (Year) | 4 years 182 days | 5 years 73 days |
Restrictive Covenant [Member] | ||
Gross Carrying Amount | $ 263 | $ 263 |
Accumulated Amortization | (212) | (121) |
Net Carrying Amount | $ 51 | $ 142 |
Useful life (Year) | 1 year 36 days | 1 year 109 days |
Note 6 - Intangible Assets an43
Note 6 - Intangible Assets and Goodwill - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
2,018 | $ 11,579 | |
2,019 | 9,183 | |
2,020 | 7,664 | |
2,021 | 7,197 | |
2,022 | 7,197 | |
Thereafter | 35,888 | |
Total | $ 78,708 | $ 91,482 |
Note 7 - Accounts Payable, Ac44
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts payable, trade | $ 10,741 | $ 19,330 |
Accrued compensation and other | 26,448 | 24,072 |
Accrued operating expenses | 19,498 | 18,498 |
Total accounts payable, accrued expenses and other liabilities | $ 56,687 | $ 61,900 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 47.70% | 42.60% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 8.7 | $ 8.2 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0.9 | $ 0.6 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 0.3 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 1.9 | ||
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination, Year under Examination | 2,013 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination, Year under Examination | 2,014 |
Note 9 - Estimated Liability 46
Note 9 - Estimated Liability for Appeals (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Estimated Liability for Appeals Gain (Loss) Included in Earnings | $ 8,400,000 | $ 8,436,000 | ||
Estimated Liability for Appeals | 22,252,000 | $ 30,787,000 | ||
Estimated Liability for Appeals, Amount Adjudicated | 19,400,000 | 19,300,000 | ||
Estimated Liability for Appeals, Amount Probable of Being Returned | 0 | 8,500,000 | ||
Estimated Liability for Appeals, Commercial Customers Claim Findings, Adjudicated in Favor of Providers | $ 2,900,000 | $ 3,200,000 |
Note 9 - Estimated Liability 47
Note 9 - Estimated Liability for Appeals - Activity in Estimated Liability for Appeals (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Release of liability | $ (8,400,000) | $ (8,436,000) | |
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member] | |||
Balance--beginning of period | $ 8,544,000 | 8,544,000 | |
Provision | |||
Appeals found in providers favor | (108,000) | ||
Release of liability | (8,436,000) | ||
Balance--end of period |
Note 10 - Credit Agreement (Det
Note 10 - Credit Agreement (Details Textual) $ in Thousands | Dec. 19, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 18, 2017USD ($) |
Amortization of Debt Issuance Costs | $ 282 | $ 1,042 | |||
Credit Agreement [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | ||||
Line of Credit Facility, Expiration Period | 5 years | ||||
Debt Agreement, Maximum Borrowing Capacity | $ 120,000 | ||||
Debt Agreement, Maximum Borrowing Capacity, Percent of Consolidated EBITDA | 100.00% | ||||
Credit Agreement [Member] | Letter of Credit [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||||
Credit Agreement [Member] | Swingline Loans [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Long-term Line of Credit, Total | 240,000 | $ 240,000 | |||
Repayments of Long-term Lines of Credit | 0 | ||||
Debt Instrument, Secured Leverage Ratio | 5.25 | ||||
Debt Issuance Costs, Net, Total | 2,500 | $ 2,800 | |||
Amortization of Debt Issuance Costs | $ 300 | $ 1,000 | |||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||
Debt Instrument, Covenant, Interest Coverage Ratio | 3 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | One-month LIBOR Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||
Debt Instrument, Secured Leverage Ratio | 3 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Through December 2019 [Member] | |||||
Debt Instrument, Secured Leverage Ratio | 4.75 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | From and After January 2020 [Member] | |||||
Debt Instrument, Secured Leverage Ratio | 4.25 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | One-month LIBOR Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Note 10 - Credit Agreement - Su
Note 10 - Credit Agreement - Summary of Interest Expense and Commitment Fees on Unused Portion of Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest expense | $ 2,627 | $ 1,469 | $ 4,697 | $ 2,843 |
Commitment fees | $ 239 | $ 333 | $ 477 | $ 711 |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,552,862 | 1,804,272 | 2,738,783 | 1,888,257 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 626,341 | 51,836 | 106,501 | 63,247 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ (3,367) | $ 6,517 | $ 3,024 | $ 7,959 |
Basic (in shares) | 83,231 | 83,921 | 83,222 | 83,708 |
Plus: net effect of dilutive stock options and restricted stock units (in shares) | 1,905 | 1,615 | 1,826 | |
Weighted average common shares outstanding-diluted (in shares) | 83,231 | 85,826 | 84,837 | 85,534 |
Net (loss)/income per common share -- basic (in dollars per share) | $ (0.04) | $ 0.08 | $ 0.04 | $ 0.10 |
Net (loss)/income per common share -- diluted (in dollars per share) | $ (0.04) | $ 0.08 | $ 0.04 | $ 0.09 |
Note 12 - Stock-based Compens52
Note 12 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allocated Share-based Compensation Expense, Total | $ 4,714 | $ 3,994 | $ 14,208 | $ 9,380 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 87,230 | 132,128 | 151,034 | 132,805 |
Proceeds from Stock Options Exercised | $ 2,200 | $ 2,000 | $ 2,390 | $ 1,986 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 800 | 600 | 800 | $ 600 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 9,600 | $ 9,600 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.52 | $ 7.73 | ||
Income Tax Expense (Benefit), Total | (242) | 5,538 | $ 2,761 | $ 5,908 |
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense, Total | 2,100 | 1,700 | $ 6,100 | 3,900 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 109 days | |||
Income Tax Expense (Benefit), Total | $ 2,500 | 3,600 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Allocated Share-based Compensation Expense, Total | $ 2,600 | $ 2,200 | $ 8,100 | $ 5,500 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 138 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 62,259 | 536,023 | 761,083 | 539,657 |
Stock Granted, Value, Share-based Compensation, Gross | $ 900 | $ 10,200 | $ 12,700 | $ 10,300 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,330,734 | 1,330,734 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 13,900 | $ 13,900 |
Note 12 - Stock-based Compens53
Note 12 - Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allocated Share-based Compensation Expense | $ 4,714 | $ 3,994 | $ 14,208 | $ 9,380 |
Cost of Sales [Member] | ||||
Allocated Share-based Compensation Expense | 1,673 | 1,462 | 4,236 | 3,503 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated Share-based Compensation Expense | $ 3,041 | $ 2,532 | $ 9,972 | $ 5,877 |
Note 12 - Stock-based Compens54
Note 12 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Beginning Balance, Shares (in shares) | 5,554,000 | |||
Beginning Balance, Weighted Average Exercise Price (in dollars per share) | $ 17.35 | |||
Granted, Shares (in shares) | 1,010,000 | |||
Granted, Weighted Average Exercise Price (in dollars per share) | $ 19.58 | |||
Exercised, Shares (in shares) | (87,230) | (132,128) | (151,034) | (132,805) |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 15.81 | |||
Forfeitures, Shares (in shares) | (26,000) | |||
Forfeitures, Weighted Average Exercise Price (in dollars per share) | $ 16.43 | |||
Expired, Shares (in shares) | (27,000) | |||
Expired, Weighted Average Exercise Price (in dollars per share) | $ 22.14 | |||
Ending Balance, Shares (in shares) | 6,360,000 | 6,360,000 | ||
Ending Balance, Weighted Average Exercise Price (in dollars per share) | $ 17.78 | $ 17.78 | ||
Ending Balance, Weighted Average Remaining Contractual Terms (Year) | 5 years 135 days | |||
Outstanding, Aggregate intrinsic value | $ 26,785 | $ 26,785 | ||
Expected to Vest, Shares (in shares) | 1,633,000 | 1,633,000 | ||
Expected to Vest, Weighted Average Exercise Price (in dollars per share) | $ 17.68 | $ 17.68 | ||
Expected to Vest, Weighted Average Remaining Contractual Terms (Year) | 8 years | |||
Expected to Vest, Aggregate Intrinsic Value | $ 6,449 | $ 6,449 | ||
Exercisable, Shares (in shares) | 3,877,000 | 3,877,000 | ||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 17.87 | $ 17.87 | ||
Exercisable, Weighted Average Remaining Contractual Terms (Year) | 3 years 262 days | |||
Exercisable, Aggregate Intrinsic Value | $ 16,929 | $ 16,929 |
Note 12 - Stock-based Compens55
Note 12 - Stock-based Compensation - Weighted Average Assumptions Used in Valuation of Stock Options (Details) - Employee Stock Option [Member] - Black Scholes Model [Member] | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.68% | 1.74% |
Expected volatility | 42.43% | 44.23% |
Expected life (Year) | 6 years | 5 years |
Note 12 - Stock-based Compens56
Note 12 - Stock-based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Beginning balance, shares (in shares) | 1,346,000 | |||
Beginning balance, weighted average grant date fair value per unit (in dollars per share) | $ 17.65 | |||
Granted, shares (in shares) | 62,259 | 536,023 | 761,083 | 539,657 |
Granted, weighted average grant date fair value per unit (in dollars per share) | $ 16.72 | |||
Vesting of restricted stock units, net of units withheld for taxes (in shares) | (364,000) | |||
Vesting of restricted stock units, net of units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ 16.93 | |||
Units withheld for taxes (in shares) | (161,000) | |||
Units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ 16.93 | |||
Forfeitures, shares (in shares) | (26,000) | |||
Forfeitures, weighted average grant date fair value per unit (in dollars per share) | $ 16.89 | |||
Ending balance, shares (in shares) | 1,556,000 | 1,556,000 | ||
Ending balance, weighted average grant date fair value per unit (in dollars per share) | $ 19.98 | $ 19.98 |
Note 13 - Commitments and Con57
Note 13 - Commitments and Contingencies (Details Textual) - Dennis Demetre and Lori Lewis v. HMS Holdings Corp [Member] - USD ($) $ in Millions | Jun. 27, 2018 | Nov. 03, 2017 |
Loss Contingency, Damages Awarded, Value | $ 60 | |
Payments for Legal Settlements | $ 20 |