OLATHE, Kan.–(BUSINESS WIRE)–NIC Inc. (Nasdaq: EGOV), a leading digital government solutions and payments company, announced results for the third quarter of 2020 that ended September 30, 2020, as compared to the third quarter of 2019.
-
Total revenues of $134.6 million, a 49% increase.
- Total revenues reflect $24.8 million from TourHealth, the Company’s new rapid COVID-19 testing solution with Impact Health and NEXT Marketing, which commenced in August 2020.
- Total revenues reflect $7.6 million from pandemic unemployment services provided to the Commonwealth of Virginia.
-
Operating income of $29.8 million, a 66% increase.
- Operating income reflects a $4.9 million contribution from TourHealth.
- Operating income reflects a $2.0 million contribution from pandemic unemployment services provided to the Commonwealth of Virginia.
- Net income of $25.1 million, a 73% increase.
-
Diluted earnings per share of 37 cents, a 76% increase.
- Diluted earnings per share reflects a 6-cent contribution from TourHealth.
- Diluted earnings per share reflects a 2-cent contribution from pandemic unemployment services provided to the Commonwealth of Virginia.
- Diluted earnings per share was positively impacted by approximately 4 cents due to the release of reserves for unrecognized income tax benefits resulting from statute of limitations expirations and other favorable tax adjustments upon filing the Company’s 2019 return. Certain similar discrete tax items positively impacted diluted earnings per share by approximately 1 cent in the prior year.
-
Adjusted EBITDA of $35.3 million, a 53% increase.
- Adjusted EBITDA reflects a $4.9 million contribution from TourHealth.
- Adjusted EBITDA reflects a $2.0 million contribution from pandemic unemployment services provided to the Commonwealth of Virginia.
Additional Financial Highlights:
-
Same state revenues of $91.3 million, a 25% increase.
- Same state transaction-based revenues from Interactive Government Services (IGS) increased 25%, driven by higher revenues from DMV-related services, such as auto registrations, tax-related services, and outdoor recreation services, among others.
- Same state transaction-based revenues from Driver History Records (DHR) decreased 6%, driven by volume declines in several states primarily resulting from the COVID-19 pandemic.
- Same state revenues from other services (development services & fixed fee management services) increased 225%, driven by revenues from pandemic unemployment services provided to the Commonwealth of Virginia, as described above.
- Revenues from the Company’s contract with the state of Illinois were excluded from same state revenues in the current quarter because it did not generate comparable revenues for two full comparable periods. Illinois will be included in the calculation of same state revenues beginning in the fourth quarter of 2020.
- Financial results from the Company’s Texas payment processing contract previously included in the State Enterprise category were included in the Software & Services category beginning in the first quarter of 2020. Financial results in the prior year were reclassified to match the current year presentation.
- Software & Services revenues of $43.1 million, a 152% increase, driven primarily by revenues from TourHealth, as described above.
- On October 26, 2020, the Company’s Board of Directors declared a regular quarterly cash dividend of 9 cents per share, payable to stockholders of record as of December 4, 2020. The dividend, which is expected to total approximately $6.1 million based on the current number of shares outstanding, will be paid on December 18, 2020 out of the Company’s available cash.
Operational Highlights:
As previously announced, following competitive bid processes, NIC was awarded new, multi-year contracts with the states of Florida and Iowa.
The state of Florida awarded the Company a contract to provide transaction-funded payment processing services for all state agencies. This contract also provides the ability for local governments in Florida to work with the Company for payment processing services. The contract has an initial term of five years, which may be extended by up to five additional years.
The state of Iowa awarded the Company a contract to provide enterprise digital government services to the state. The contract has an initial term of five years with five one-year renewal options.
In addition to these awards, several of the Company’s long-term government partners recently extended their relationships with the Company:
- Maryland extended its contract with the Company for six months.
- Wisconsin extended its contract with the Company for two years.
- The Company signed a new state enterprise contract with the state of Oklahoma. The contract has an initial term of one year with four one-year renewal options.
As previously announced, NIC joined forces with two market-leading firms, Impact Health and NEXT Marketing, to create TourHealth, a comprehensive and scalable rapid COVID-19 testing solution. During the third quarter of 2020, TourHealth provided testing services to the state of Florida, the Alabama Department of Corrections and the University of Mississippi, and in October 2020, TourHealth began providing testing services to the state of South Carolina. Additionally, TourHealth has been selected by the states of Utah, Nevada and Missouri as an approved COVID-19 testing vendor.
“The positive momentum we continue to experience in 2020 is a true testament to the dedication of our employees and government partners, who, despite the many challenges of this pandemic, continue to focus on delivering essential digital government services to communities across the country. We appreciate the confidence Florida and Iowa have placed in us to bring innovative digital government services and secure payment processing to their citizens,” said Harry Herington, NIC’s Chief Executive Officer and Chairman of the Board. “We are also very proud of the success of TourHealth and the critical access to COVID-19 tests this solution provides. This solution further demonstrates NIC’s ability to quickly respond to critical needs in times of crisis.”
COVID-19 and Updated Full-Year 2020 Outlook:
NIC continues to evaluate the impact the COVID-19 pandemic may have on its business for the remainder of the year. Based on this ongoing evaluation and taking into consideration recent revenue trends, including COVID-19 related contributions from TourHealth and Virginia pandemic unemployment services, the Company now expects to come in above the high end of its previously issued guidance for total revenues, which was $391.0 million, adjusted EBITDA, which was $93.0 million, and earnings per share, which was 81 cents.
Third Quarter Earnings Call and Webcast Details
On October 28, 2020, the Company will host a call to discuss its 2020 third quarter financial performance and fiscal outlook, and answer questions from the investment community. The call may also include a discussion of Company developments, and forward-looking and other material information about business and financial matters.
Dial-In Information |
|
Wednesday, October 28, 2020 at 4:30 p.m. (EDT) |
|
|
|
Call bridge: |
1-334-777-6978 (local) or 1-800-367-2403 (tollfree) |
Conference ID: |
6173860 |
Call leaders: |
Harry Herington, Chief Executive Officer and Chairman of the Board |
|
Steve Kovzan, Chief Financial Officer |
Webcast Information
To sign in and listen: The Webcast system is available at https://www.egov.com/investor-relations.html
A replay of NIC’s third quarter earnings call will be available 24 hours following the call by visiting https://www.egov.com/investor-relations.html
About NIC
NIC (Nasdaq: EGOV) is a leading digital government solutions and payments company, serving more than 7,000 federal, state and local government agencies across the nation. With headquarters in Olathe, Kansas, and offices in more than 30 states, NIC partners with government to deliver user-friendly digital services that make it easier and more efficient to interact with government – providing valuable conveniences like applying for unemployment insurance, submitting business filings, renewing licenses, accessing information and making secure payments without visiting a government office. In the COVID-19 era and beyond, NIC helps government agencies rapidly deliver new digital solutions to provide essential services to citizens and businesses alike. Having served the public sector for nearly 30 years, NIC continues to evolve with its federal, state and local government partners to deliver innovative and cost-effective digital government to constituents. Learn more at www.egov.com.
Non-GAAP Measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin. Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation & amortization, stock-based compensation and other significant non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues. These measures should be used in addition to, and not as a substitute for, revenues, operating income, operating income margin, net income, earnings per share or other measures of profitability, liquidity or other performance measures computed in accordance with U.S. GAAP. The Company believes the presentation of adjusted EBITDA and adjusted EBITDA margin is useful to investors and other users as these measures represent key supplemental information to compare and evaluate the Company’s core underlying business results over time and with other companies. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedule provides a full reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Adjusted EBITDA and adjusted EBITDA margin represent performance measures and are not intended to represent liquidity measures.
Cautionary Statement Regarding Forward-Looking Information
Any statements made in this release that do not relate to historical or current facts constitute forward-looking statements. These statements often address the Company’s potential financial performance for the 2020 fiscal year or future fiscal years, estimates, projections, the expected length of contract terms, statements relating to the Company’s business plans, objectives and expected operating results, statements relating to potential new contracts or renewals, statements relating to the Company’s expected effective tax rate, statements relating to possible future dividends and share repurchases, statements related to the ongoing effects the COVID-19 pandemic is expected to have on the Company’s business and financial results, including statements relating to the duration, profitability and unsatisfied performance obligations of the Company’s COVID-19 testing solution, and other possible future events, including potential acquisitions, and the assumptions upon which those statements are based. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. These risks include regional or national business, political, economic, competitive, social and market conditions, including various termination rights of the Company and its partners, the ability of the Company to renew existing contracts – in whole or in part, and to sign contracts with new federal, state, and local government agencies, the impact of potential information technology, cybersecurity or data security breaches or incidents, the Company’s ability to identify and acquire suitable acquisition candidates and to successfully integrate any acquired businesses, and the effects the COVID-19 pandemic may have on continued demand for and profitability of the Company’s services, including the Company’s COVID-19 testing solution, as well as its government agency partners, its workforce and the broader economy. You should not rely on any forward-looking statement as a prediction or guarantee about the future. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the sections titled “Risk Factors” and “Cautions About Forward-Looking Statements” of the Company’s most recent Forms 10-K and subsequent reports filed with the SEC. These filings are available at the SEC’s website at www.sec.gov. Any forward-looking statements included in this release speak only as of the date of this release. Except as may be required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
NIC INC. |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL SUMMARY |
||||||||||||||||||||
(In thousands, except per share amounts and percentages) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||||||
State enterprise revenues |
|
$ |
91,475 |
|
|
$ |
73,257 |
|
|
$ |
243,690 |
|
|
$ |
217,981 |
|
||||
Software & services revenues |
|
43,115 |
|
|
17,128 |
|
|
75,608 |
|
|
49,151 |
|
||||||||
Total revenues |
|
134,590 |
|
|
90,385 |
|
|
319,298 |
|
|
267,132 |
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||||||
State enterprise cost of revenues, exclusive of depreciation & amortization |
|
53,807 |
|
|
43,821 |
|
|
145,954 |
|
|
130,881 |
|
||||||||
Software & services cost of revenues, exclusive of depreciation & amortization |
|
31,290 |
|
|
10,173 |
|
|
52,359 |
|
|
30,094 |
|
||||||||
Selling & administrative |
|
8,817 |
|
|
8,153 |
|
|
25,196 |
|
|
26,473 |
|
||||||||
Enterprise technology & product support |
|
7,342 |
|
|
6,743 |
|
|
21,797 |
|
|
19,933 |
|
||||||||
Depreciation & amortization |
|
3,528 |
|
|
3,524 |
|
|
10,483 |
|
|
9,075 |
|
||||||||
Total operating expenses |
|
104,784 |
|
|
72,414 |
|
|
255,789 |
|
|
216,456 |
|
||||||||
Operating income |
|
29,806 |
|
|
17,971 |
|
|
63,509 |
|
|
50,676 |
|
||||||||
Other income: |
|
|
|
|
|
|
|
|
||||||||||||
Interest income |
|
— |
|
|
729 |
|
|
389 |
|
|
1,910 |
|
||||||||
Income before income taxes |
|
29,806 |
|
|
18,700 |
|
|
63,898 |
|
|
52,586 |
|
||||||||
Income tax provision |
|
4,715 |
|
|
4,190 |
|
|
13,148 |
|
|
12,113 |
|
||||||||
Net income |
|
$ |
25,091 |
|
|
$ |
14,510 |
|
|
$ |
50,750 |
|
|
$ |
40,473 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Basic net income per share |
|
$ |
0.37 |
|
|
$ |
0.21 |
|
|
$ |
0.75 |
|
|
$ |
0.60 |
|
||||
Diluted net income per share |
|
$ |
0.37 |
|
|
$ |
0.21 |
|
|
$ |
0.75 |
|
|
$ |
0.60 |
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
67,025 |
|
|
66,960 |
|
|
67,004 |
|
|
66,858 |
|
||||||||
Diluted |
|
67,025 |
|
|
66,960 |
|
|
67,004 |
|
|
66,858 |
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Key financial metrics: |
|
|
|
|
|
|
|
|
||||||||||||
Total revenue growth |
|
49 |
% |
|
4 |
% |
|
20 |
% |
|
— |
% |
||||||||
Recurring revenues as a % of total revenues |
|
74 |
% |
|
97 |
% |
|
86 |
% |
|
97 |
% |
||||||||
State enterprise revenue growth |
|
25 |
% |
|
(7 |
)% |
|
12 |
% |
|
(11 |
)% |
||||||||
Same state revenue growth |
|
25 |
% |
|
12 |
% |
|
12 |
% |
|
11 |
% |
||||||||
Gross profit % – state enterprise |
|
41 |
% |
|
40 |
% |
|
40 |
% |
|
40 |
% |
||||||||
Software & services revenue growth |
|
152 |
% |
|
111 |
% |
|
54 |
% |
|
146 |
% |
||||||||
Gross profit % – software & services |
|
27 |
% |
|
41 |
% |
|
31 |
% |
|
39 |
% |
||||||||
Selling & administrative as a % of total revenues |
|
7 |
% |
|
9 |
% |
|
8 |
% |
|
10 |
% |
||||||||
Enterprise technology & product support as a % of total revenues |
|
5 |
% |
|
7 |
% |
|
7 |
% |
|
7 |
% |
||||||||
Operating income as a % of total revenues (“operating margin”) |
|
22 |
% |
|
20 |
% |
|
20 |
% |
|
19 |
% |
||||||||
State enterprise revenue analysis: |
|
|
|
|
|
|
|
|
||||||||||||
IGS |
|
$ |
58,192 |
|
|
$ |
46,480 |
|
|
$ |
156,436 |
|
|
$ |
136,826 |
|
||||
DHR |
|
21,716 |
|
|
23,076 |
|
|
65,172 |
|
|
70,158 |
|
||||||||
Development services |
|
10,329 |
|
|
2,463 |
|
|
18,369 |
|
|
7,284 |
|
||||||||
Fixed-fee management services |
|
1,238 |
|
|
1,238 |
|
|
3,713 |
|
|
3,713 |
|
||||||||
Total state enterprise revenues |
|
$ |
91,475 |
|
|
$ |
73,257 |
|
|
$ |
243,690 |
|
|
$ |
217,981 |
|
NIC INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except par value amount) |
||||||||
(Unaudited) |
||||||||
|
|
September 30, 2020 |
|
December 31, 2019 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash |
|
$ |
235,348 |
|
|
$ |
214,380 |
|
Trade accounts receivable, net |
|
139,044 |
|
|
85,399 |
|
||
Prepaid expenses & other current assets |
|
18,649 |
|
|
12,944 |
|
||
Total current assets |
|
393,041 |
|
|
312,723 |
|
||
Property and equipment, net |
|
10,107 |
|
|
10,091 |
|
||
Right of use lease assets, net |
|
11,293 |
|
|
10,778 |
|
||
Intangible assets, net |
|
21,426 |
|
|
22,398 |
|
||
Goodwill |
|
5,965 |
|
|
5,965 |
|
||
Other assets |
|
1,608 |
|
|
404 |
|
||
Total assets |
|
$ |
443,440 |
|
|
$ |
362,359 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
79,698 |
|
|
$ |
63,685 |
|
Accrued expenses |
|
53,525 |
|
|
25,940 |
|
||
Lease liabilities |
|
4,110 |
|
|
3,776 |
|
||
Other current liabilities |
|
11,998 |
|
|
7,191 |
|
||
Total current liabilities |
|
149,331 |
|
|
100,592 |
|
||
|
|
|
|
|
||||
Deferred income taxes, net |
|
2,295 |
|
|
2,463 |
|
||
Lease liabilities |
|
7,618 |
|
|
7,373 |
|
||
Other long-term liabilities |
|
4,854 |
|
|
6,003 |
|
||
Total liabilities |
|
164,098 |
|
|
116,431 |
|
||
|
|
|
|
|
||||
Commitments and contingencies |
|
— |
|
|
— |
|
||
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock, $0.0001 par, 200,000 shares authorized, 67,026 and 66,968 shares issued and outstanding |
|
7 |
|
|
7 |
|
||
Additional paid-in capital |
|
127,358 |
|
|
123,208 |
|
||
Retained earnings |
|
151,977 |
|
|
122,713 |
|
||
Total stockholders’ equity |
|
279,342 |
|
|
245,928 |
|
||
Total liabilities and stockholders’ equity |
|
$ |
443,440 |
|
|
$ |
362,359 |
|
NIC INC. |
||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
|
|
Nine Months Ended |
||||||||
|
|
2020 |
|
2019 |
||||||
Cash flows from operating activities: |
|
|
|
|
||||||
Net income |
|
$ |
50,750 |
|
|
|
$ |
40,473 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||||
Depreciation & amortization |
|
10,483 |
|
|
|
9,075 |
|
|
||
Stock-based compensation expense |
|
5,056 |
|
|
|
5,227 |
|
|
||
Deferred income taxes |
|
(285 |
) |
|
|
1,464 |
|
|
||
Provision for losses on accounts receivable |
|
1,135 |
|
|
|
409 |
|
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||||
Trade accounts receivable, net |
|
(54,324 |
) |
|
|
(25,135 |
) |
|
||
Prepaid expenses & other current assets |
|
(5,705 |
) |
|
|
761 |
|
|
||
Other assets |
|
2,212 |
|
|
|
3,333 |
|
|
||
Accounts payable |
|
16,013 |
|
|
|
24,700 |
|
|
||
Accrued expenses |
|
27,585 |
|
|
|
1,554 |
|
|
||
Other current liabilities |
|
3,977 |
|
|
|
2,052 |
|
|
||
Other long-term liabilities |
|
(3,671 |
) |
|
|
(5,211 |
) |
|
||
Net cash provided by operating activities |
|
53,226 |
|
|
|
58,702 |
|
|
||
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
||||||
Capital expenditures |
|
(2,956 |
) |
|
|
(3,483 |
) |
|
||
Capitalized software development costs |
|
(6,572 |
) |
|
|
(6,679 |
) |
|
||
Business combination |
|
— |
|
|
|
(10,000 |
) |
|
||
Asset acquisition |
|
— |
|
|
|
(3,486 |
) |
|
||
Net cash used in investing activities |
|
(9,528 |
) |
|
|
(23,648 |
) |
|
||
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
||||||
Cash dividends on common stock |
|
(18,299 |
) |
|
|
(16,234 |
) |
|
||
Proceeds from employee common stock purchases |
|
1,509 |
|
|
|
1,443 |
|
|
||
Shares surrendered upon vesting of restricted stock to satisfy tax withholdings |
|
(1,996 |
) |
|
|
(2,686 |
) |
|
||
Repurchase of shares |
|
(3,944 |
) |
|
|
— |
|
|
||
Net cash used in financing activities |
|
(22,730 |
) |
|
|
(17,477 |
) |
|
||
|
|
|
|
|
||||||
Net increase in cash |
|
20,968 |
|
|
|
17,577 |
|
|
||
Cash, beginning of period |
|
214,380 |
|
|
|
191,700 |
|
|
||
Cash, end of period |
|
235,348 |
|
|
|
209,277 |
|
|
||
|
|
|
|
|
||||||
Other cash flow information: |
|
|
|
|
||||||
Non-cash activities: |
|
|
|
|
||||||
Contingent consideration – business combination |
|
$ |
— |
|
|
|
$ |
960 |
|
|
Cash payments: |
|
|
|
|
||||||
Income taxes paid, net |
|
$ |
7,678 |
|
|
|
$ |
12,283 |
|
|
NIC INC. |
||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
Reconciliation of net income to Adjusted EBITDA |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net income |
|
$ |
25,091 |
|
|
$ |
14,510 |
|
|
$ |
50,750 |
|
|
$ |
40,473 |
|
Add: Income tax expense |
|
4,715 |
|
|
4,190 |
|
|
13,148 |
|
|
12,113 |
|
||||
Less: Interest income |
|
— |
|
|
729 |
|
|
389 |
|
|
1,910 |
|
||||
Operating income |
|
29,806 |
|
|
17,971 |
|
|
63,509 |
|
|
50,676 |
|
||||
Add: Depreciation & amortization expense |
|
3,528 |
|
|
3,524 |
|
|
10,483 |
|
|
9,075 |
|
||||
Add: Stock-based compensation expense, inclusive of executive severance (1) |
|
1,998 |
|
|
1,524 |
|
|
5,056 |
|
|
5,227 |
|
||||
Add: Executive severance payments (1) |
|
— |
|
|
— |
|
|
— |
|
|
1,526 |
|
||||
Adjusted EBITDA |
|
$ |
35,332 |
|
|
$ |
23,019 |
|
|
$ |
79,048 |
|
|
$ |
66,504 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total Revenues |
|
$ |
134,590 |
|
|
$ |
90,385 |
|
|
$ |
319,298 |
|
|
$ |
267,132 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income as a % of total revenues (“net profit margin”) |
|
19 |
% |
|
16 |
% |
|
16 |
% |
|
15 |
% |
||||
Adjusted EBITDA as a % of total revenues (“Adjusted EBITDA margin”) |
|
26 |
% |
|
25 |
% |
|
25 |
% |
|
25 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
Detail of stock-based compensation expense |
|
|
|
|
|
|
|
|
||||||||
State enterprise cost of revenues, exclusive of depreciation & amortization |
|
$ |
409 |
|
|
$ |
370 |
|
|
$ |
1,167 |
|
|
$ |
1,127 |
|
Software & services cost of revenues, exclusive of depreciation & amortization |
|
46 |
|
|
19 |
|
|
115 |
|
|
75 |
|
||||
Selling & administrative |
|
1,329 |
|
|
951 |
|
|
3,185 |
|
|
3,523 |
|
||||
Enterprise technology & product support |
|
214 |
|
|
184 |
|
|
589 |
|
|
502 |
|
||||
Total stock-based compensation expense |
|
$ |
1,998 |
|
|
$ |
1,524 |
|
|
$ |
5,056 |
|
|
$ |
5,227 |
|
(1) |
Executive severance expense of $2.6 million related to the departure of the Company’s former Chief Operating Officer is included in selling & administrative expense in the consolidated statements of income and financial summary for the three months ended March 31, 2019. These costs consisted of a one-time cash payment of $1.5 million and $1.1 million of stock-based compensation expense associated with the accelerated vesting of certain restricted stock awards. These costs were excluded from Adjusted EBITDA because the Company does not regard these costs as reflective of normal recurring costs to operate its business. |
Contacts
Kara Cowie
Director of Corporate Communications
(816) 813-2350
kara.cowie@egov.com