Opinion Research (NASDAQ:ORCI)
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Opinion Research Reports Results for the Second Quarter of 2005
PRINCETON, N.J., Aug. 1 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), today announced financial results for the second quarter ended June 30, 2005.
Revenues
Revenues for the quarter were $51.8 million versus $49.4 million in the prior year's second quarter. Social research revenues were up over 12% to $36.2 million versus $32.3 million in last year's second quarter. Market research revenues totaled $13.2 million versus $13.8 million in the prior year's second quarter. Teleservices revenues were $2.4 million versus $3.3 million in last year's second quarter.
Income
Net income for the quarter was $1.3 million, or $0.20 per diluted share, as compared to a loss of ($237,000), or ($0.04) per diluted share, in last year's second quarter. Last year's second quarter was impacted by a refinancing charge that reduced net income in the quarter by $1.4 million and diluted earnings per share in the quarter by $0.22.
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 and teleservices units continues to improve and we expect continued good performance from our social research business, our largest segment."
The Company expects revenues in 2005 to be between $200 and $205 million, net income to be between $3.5 and $4.0 million and diluted earnings per share to be between $0.56 and $0.64. These net income and earnings per share expectations include the cost of the recent subordinated debt issuance but exclude the refinancing charges incurred in the first quarter and the charge to net income available to common shares due to the repurchase of the interests of LLR Equity Partners and an affiliate which were previously announced.
The Company has incurred costs associated with its postponed common stock offering totaling approximately $1.5 million. These costs are carried as deferred registration expenses. The Company continues to evaluate an offering of its common stock.
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.
First Half Results
For the first half of 2005, revenues were $100.7 million compared to $97.4 million in the first half of 2004. First half net income was $1.5 million, or $0.22 per diluted share, compared to $701,000, or $0.11 per diluted share, in the same period last year. Last year's first half was impacted by a refinancing charge that reduced net income by $1.5 million and diluted earnings per share by $0.24. This year's first half was impacted by a refinancing charge that reduced net income by $776,000 and diluted earnings per share by $0.12.
Conference Call
Chairman and Chief Executive Officer John F. Short and Chief Financial Officer Douglas L. Cox will conduct an investor conference call at 10:00 a.m. (EDT) on Tuesday, August 2. The dial-in number for the live conference call will be (866) 825-3354 and (617- 213-8063 outside the U.S. and Canada) and enter conference passcode 81206351. There will be a live web cast of the conference call over the investor relations page of the company's Web site at http://www.opinionresearch.com/ as well as at http://www.fulldisclosure.com/.
For those who cannot listen to the live broadcast, an audio replay of the call will be available on the above web sites for 30 days. A telephone replay of the call will also be available from 12:00 p.m. on August 2 until 11:59 p.m. on August 9. To listen to the telephone replay, dial (888) 286-8010 (617-801-6888 outside the U.S. and Canada) and enter conference passcode 96571646.
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 For The Six Months
Ended June 30, Ended June 30,
2004 2005 2004 2005
Revenues $49,400 $51,782 $97,361 $100,720
Cost of revenues, exclusive of
depreciation 35,045 36,864 68,763 71,705
Gross profit 14,355 14,918 28,598 29,015
Selling, general and
administrative expenses 10,370 10,596 20,268 21,241
Depreciation and amortization 955 1,023 1,897 1,992
Operating income 3,030 3,299 6,433 5,782
Interest expense 3,766 855 5,373 3,134
Other non-operating (income)
expenses (293) 7 (301) (49)
(Loss) income before
income tax (benefit)
expense (443) 2,437 1,361 2,697
Income tax (benefit) expense (206) 1,096 660 1,214
Net (loss) income $(237) $1,341 $701 $1,483
Net (loss) income per common
share:
Basic $(0.04) $0.21 $0.11 $0.23
Diluted $(0.04) $0.20 $0.11 $0.22
Weighted average shares
outstanding:
Basic 6,241,703 6,436,411 6,195,315 6,420,655
Diluted 6,241,703 6,682,561 6,410,437 6,644,157
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Liabilities and
stockholders'
Assets 31-Dec-04 30-Jun-05 equity 31-Dec-04 30-Jun-05
Current assets: Current liabilities:
Cash and
equivalents $467 $1,307 Accounts payable $6,254 $6,136
Accounts
receivable 26,001 32,545 Accrued expenses 9,191 10,453
Allowance for
doubtful Deferred
accounts (93) (54) revenues 4,344 4,040
Unbilled Short-term
services 17,986 18,349 borrowings 2,000 3,000
Prepaid expenses
and other Other current
current assets 3,672 4,469 liabilities 2,823 6,080
Total current Total current
assets 48,033 56,616 liabilities 24,612 29,709
Non-current
assets:
Fixed assets,
net of Long-term
depreciation 10,105 10,126 borrowings 40,286 42,429
Goodwill 32,748 32,547 Other liabilities 1,542 1,520
Other
intangibles,
net of
amortization 421 294
Other non-
current assets 6,376 6,480 Redeemable equity 8,900 8,900
Total
Total non-current stockholders'
assets 49,650 49,447 equity 22,343 23,505
Total liabilities
and stockholders'
Total assets $97,683 $106,063 equity $97,683 $106,063
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
US Market UK Market Social
Research Research Teleservices Research
Three months ended June 30, 2004:
Revenues from
external customers $7,285 $5,138 $3,342 $32,261
Operating (loss) income (764) 77 300 3,387
Interest and other non-operating
expenses, net
Loss before income tax benefit
Three months ended June 30, 2005:
Revenues from
external customers $6,690 $5,702 $2,405 $36,196
Operating (loss) income (139) 102 4 3,711
Interest and other non-operating
expenses, net
Income before income tax expense
Six months ended June 30, 2004:
Revenues from
external customers $13,600 $11,058 $6,950 $63,194
Operating (loss) income (1,280) 290 690 6,726
Interest and other non-operating
expenses, net
Income before income tax expense
Six months ended June 30, 2005:
Revenues from
external customers $13,194 $11,139 $4,484 $70,054
Operating (loss) income (705) 74 (389) 7,352
Interest and other non-operating
expenses, net
Income before income tax expense
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
Total
Segments Other Consolidated
Three months ended June 30, 2004:
Revenues from external customers $48,026 $1,374 $49,400
Operating (loss) income 3,000 30 3,030
Interest and other non-operating
expenses, net 3,473
Loss before income tax benefit $(443)
Three months ended June 30, 2005:
Revenues from external customers $50,993 $789 $51,782
Operating (loss) income 3,678 (379) 3,299
Interest and other non-operating
expenses, net 862
Income before income tax expense $2,437
Six months ended June 30, 2004:
Revenues from external customers $94,802 $2,559 $97,361
Operating (loss) income 6,426 7 6,433
Interest and other non-operating
expenses, net 5,072
Income before income tax expense $1,361
Six months ended June 30, 2005:
Revenues from external customers $98,871 $1,849 $100,720
Operating (loss) income 6,332 (550) 5,782
Interest and other non-operating
expenses, net 3,085
Income before income tax expense $2,697
DATASOURCE: Opinion Research Corporation
CONTACT: Douglas L. Cox, Executive Vice President and Chief Financial
Officer of Opinion Research Corporation, +1-609-452-5274
Web site: http://www.opinionresearch.com/