Opinion Research (NASDAQ:ORCI)
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Opinion Research Reports Results for the First Quarter of 2005
PRINCETON, N.J., April 27 /PRNewswire-FirstCall/ -- Opinion Research
Corporation (NASDAQ:ORCI), today announced financial results for the first
quarter ended March 31, 2005.
Revenues
Revenues for the quarter were $48.9 million versus $48.0 million in the prior
year's first quarter. Social research revenues were up over 9% to $33.9
million versus $30.9 million in last year's first quarter. Market research
revenues totaled $13.0 million versus $13.4 million in the prior year's first
quarter. Teleservices revenues were $2.1 million versus $3.6 million in last
year's first quarter.
Income
Net income for the quarter was $142,000, or $0.02 per diluted share, versus net
income of $938,000, or $0.15 per diluted share, in last year's first quarter.
Net income for the first quarter was impacted by $776,000, or $0.12 per diluted
share, net of tax benefits, for previously announced refinancing charges.
The income tax provision in both periods is higher than statutory rates due to
the fact that we are not deriving tax benefits from non-US and state losses.
Business Outlook
Summarizing the quarter's results, Chairman and CEO, John F Short, said, "We
believe that the outlook for our market research business continues to improve,
based on increased new business bookings and backlog, and we expect continued
good performance from our social research business, our largest segment. In the
quarter, we experienced disappointing results in our teleservices segment which
we expect will improve during the course of the year."
The company expects revenues in 2005 to be between $200 and $205 million, net
income to be between $4.2 and $4.7 million and diluted earnings per share to be
between $0.62 and $0.70. These net income and earnings per share expectations
include the benefit of the reduced interest expense from our refinancing and
the one-time refinancing charges, but do not include the impact of a potential
common stock offering in 2005.
The statements above concerning the company's business outlook for 2005 are
based on current expectations. These statements are forward-looking and actual
results may differ materially. See "Forward-looking Statements" below.
About Opinion Research Corporation
Founded in 1938, Opinion Research Corporation provides health and demographic
research for government agencies, commercial market research, information
services, teleservices and consulting. The company is a pioneering leader in
the science of market and social research and has built a worldwide
data-collection network. Further information is available at
http://www.opinionresearch.com/.
Forward-looking Statements
This release contains, within the meaning of the safe harbor provision of the
Private Securities Litigation Reform Act of 1995, forward-looking statements
that are based on management's beliefs and assumptions, current expectations,
estimates and projections. Many of the factors that will determine the
company's financial results are beyond the ability of the company to control or
predict. These statements are subject to risks and uncertainties, including
general economic conditions, the loss of one or more of our large clients, the
impact of litigation and the impact of a common stock offering; therefore,
actual results may materially differ. Other important factors and risks that
may affect future results are described in the company's filings with the
Securities and Exchange Commission, copies of which are available upon request
from the company. The company disclaims any obligation to update any
forward-looking statements whether as a result of new information, future
events, or otherwise.
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except share and per share amounts)
For The Three Months
Ended March 31,
2004 2005
Revenues $47,961 $48,938
Cost of revenues, exclusive of
depreciation 33,718 34,841
Gross profit 14,243 14,097
Selling, general and administrative
expenses 9,898 10,645
Depreciation and amortization 942 969
Operating income 3,403 2,483
Interest and other non-operating
expenses, net 1,599 2,223
Income before provision for
income taxes 1,804 260
Provision for income taxes 866 118
Net income $938 $142
Net income per common share:
Basic $0.15 $0.02
Diluted $0.15 $0.02
Weighted average shares outstanding:
Basic 6,148,927 6,404,723
Diluted 6,334,952 6,605,578
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Liabilities and
stockholders'
Assets 31-Mar-05 31-Dec-04 equity 31-Mar-05 31-Dec-04
Current assets: Current
liabilities:
Cash and
equivalents $921 $467 Accounts payable $6,201 $6,254
Accounts
receivable 25,065 26,001 Accrued expenses 9,215 9,191
Allowance for
doubtful
accounts (65) (93) Deferred revenues 4,788 4,344
Unbilled services 18,828 17,986 Short-term
borrowings 3,000 2,000
Prepaid expenses
and other Other current
current assets 4,550 3,672 liabilities 4,090 2,823
Total current Total current
assets 49,299 48,033 liabilities 27,294 24,612
Non-current assets:
Fixed assets, net Long-term
of depreciation 10,158 10,105 borrowings 38,593 40,286
Goodwill 32,702 32,748 Other liabilities 1,545 1,542
Other
intangibles, net
of amortization 361 421
Other non-current
assets 6,334 6,376 Redeemable equity 8,900 8,900
Total non-current Total stockholders'
assets 49,555 49,650 equity 22,522 22,343
Total assets $98,854 $97,683 Total liabilities
and stockholders'
equity $98,854 $97,683
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
US Market UK Market Tele- Social Total Consol-
Research Research services Research Segments Other idated
Three months
ended
March 31, 2004:
Revenues from
external
customers $6,315 $5,920 $3,608 $30,933 $ 46,776 $1,185 $47,961
Operating
income (loss) (516) 213 390 3,339 3,426 (23) 3,403
Interest and
other non-
operating
expenses, net 1,599
Income before
provision for
income taxes 1,804
Three months
ended
March 31, 2005:
Revenues from
external
customers $6,504 $5,437 $2,079 $33,858 $ 47,878 $1,060 $48,938
Operating
income (loss) (566) (28) (393) 3,641 2,654 (171) 2,483
Interest and
other non-
operating
expenses, net 2,223
Income before
provision for
income taxes 260
DATASOURCE: Opinion Research Corporation
CONTACT: Douglas L. Cox, Executive Vice President, Chief Financial
Officer of Opinion Research Corporation, +1-607-452-5274
Web site: http://www.opinionresearch.com/