Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.23.2
Discontinued Operations
6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
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):
For the three months ended June 30, For the six months ended June 30,
2023 2022 2023 2022
Revenues $ 67,039  $ 71,953  $ 133,885  $ 142,871 
(Loss) income from discontinued operations before income taxes $ (1,779) $ 3,616  $ (621) $ 3,514 
Provision for income taxes (545) 823  (384) 766 
Net (loss) income from discontinued operations $ (1,234) $ 2,793  $ (237) $ 2,748 

The assets and liabilities reported as held for sale consist of the following (in thousands):
June 30, December 31,
2023 2022
Assets
Cash and cash equivalents $ 178  $ 173 
Accounts receivable, net 12,385  14,340 
Unbilled receivables 32,188  30,898 
Inventories 453  270 
Other current assets 8,760  9,244 
Property and equipment, net 6,612  7,467 
Intangible assets, net 3,505  4,066 
Goodwill 31,575  31,575 
Operating lease right-of-use assets 11,369  12,854 
Other assets 34  51 
    Total assets held-for-sale(a)
$ 107,059  $ 110,938 
Liabilities
Accounts payable $ 27,810  $ 31,096 
Accrued expenses and other current liabilities 20,609  21,833 
Long-term operating lease obligations 11,186  13,186 
Deferred tax liabilities 4,465  4,635 
    Total liabilities held-for-sale(a)
$ 64,070  $ 70,750 
(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):

For the six months ended June 30,
2023 2022
Depreciation and amortization $ 1,437  $ 1,917 
Purchases of property and equipment $ 92  $ 144 
Stock-based compensation $ 73  $ 20