| Discontinued Operations |
Discontinued Operations On May 1, 2023, we entered into a definitive agreement to sell our Federal and Defense business to Bernhard Capital Partners Management LP for total consideration of up to $100.0 million, consisting of a $50.0 million cash payment at the closing of the transaction and an earn-out payment of up to $50.0 million subject to the achievement of certain milestones. The transaction is expected to close in late 2023 to early 2024 and is subject to customary closing conditions and approvals.
The results of operations from discontinued operations for the three and six months ended June 30, 2023 and 2022, consist of the following (in thousands):
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For the three months ended June 30, |
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For the six months ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
| Revenues |
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$ |
67,039 |
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$ |
71,953 |
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$ |
133,885 |
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$ |
142,871 |
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| (Loss) income from discontinued operations before income taxes |
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$ |
(1,779) |
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$ |
3,616 |
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$ |
(621) |
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$ |
3,514 |
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| Provision for income taxes |
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(545) |
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823 |
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(384) |
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766 |
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| Net (loss) income from discontinued operations |
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$ |
(1,234) |
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$ |
2,793 |
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$ |
(237) |
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$ |
2,748 |
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The assets and liabilities reported as held for sale consist of the following (in thousands):
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June 30, |
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December 31, |
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2023 |
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2022 |
| Assets |
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Cash and cash equivalents |
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$ |
178 |
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$ |
173 |
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Accounts receivable, net |
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12,385 |
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14,340 |
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Unbilled receivables |
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32,188 |
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30,898 |
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Inventories |
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453 |
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270 |
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Other current assets |
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8,760 |
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9,244 |
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Property and equipment, net |
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6,612 |
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7,467 |
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Intangible assets, net |
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3,505 |
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4,066 |
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Goodwill |
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31,575 |
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31,575 |
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Operating lease right-of-use assets |
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11,369 |
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12,854 |
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Other assets |
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34 |
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51 |
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Total assets held-for-sale(a)
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$ |
107,059 |
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$ |
110,938 |
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| Liabilities |
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Accounts payable |
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$ |
27,810 |
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$ |
31,096 |
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Accrued expenses and other current liabilities |
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20,609 |
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21,833 |
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Long-term operating lease obligations |
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11,186 |
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13,186 |
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Deferred tax liabilities |
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4,465 |
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4,635 |
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Total liabilities held-for-sale(a)
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$ |
64,070 |
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$ |
70,750 |
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| (a) Amounts have been classified as current for the current period consolidated balance sheet and as current and non-current in the consolidated balance sheet for the prior year period. |
Selected financial information related to cash flows from discontinued operations is as follows (in thousands):
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For the six months ended June 30, |
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2023 |
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2022 |
| Depreciation and amortization |
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$ |
1,437 |
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$ |
1,917 |
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| Purchases of property and equipment |
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$ |
92 |
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$ |
144 |
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| Stock-based compensation |
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$ |
73 |
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$ |
20 |
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