Opinion Research (NASDAQ:ORCI)
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Opinion Research Reports a 41% Increase in Net Income on a 9%
Increase in Revenues for the Third Quarter
PRINCETON, N.J., Oct. 28 /PRNewswire-FirstCall/ -- Opinion Research
Corporation (NASDAQ:ORCI), today announced financial results for the third
quarter ended September 30, 2004. Summarizing the quarter's results, Chairman
and CEO John F. Short said, "We are pleased with our performance in the third
quarter with revenues increasing 9% and net income increasing 41% over the
third quarter of last year."
Revenues
Revenues for the third quarter were $48.9 million versus $44.9 million in the
prior year's third quarter. Social research revenues were $32.7 million versus
$29.1 million in last year's third quarter. Commercial market research
revenues totaled $13.0 million versus $12.0 million in the prior year's third
quarter. Teleservices revenues were $3.2 million versus $3.8 million in last
year's third quarter.
Income
Operating income for the third quarter was $3.1 million, versus $2.7 million in
the prior year's third quarter, an increase of 11%. Net income was $1.0
million in the quarter, as compared to $.7 million in the third quarter last
year. Net income per diluted share was $0.15 versus net income per diluted
share of $0.11 in the prior year's third quarter.
Business Outlook
Mr. Short commented, "We believe that the outlook for our commercial market
research business is improving, based on increasing backlog, the volume of new
business inquiries we are receiving and the proposals we are submitting to
potential clients. We also expect our social research business to continue to
meet our expectations." The company has increased its revenue guidance for
2004 to a range of $194 million to $196 million and has narrowed the range of
its earlier net income and earnings per share guidance for 2004 to $3.0 million
to $3.2 million and $0.46 to $0.50 per diluted share. These include a second
quarter 2004 refinancing-related charge which reduced net income by $1.6
million and diluted earnings per share by $0.26. This guidance does not
include the impact of the previously announced potential common stock offering.
The statements above concerning the company's business outlook for 2004 are
based on current expectations. These statements are forward-looking and actual
results may differ materially.
Nine-Month Results
For the first nine months of 2004, revenues were $146.3 million compared to
$133.5 million in the first nine months of 2003, an increase of 10%. For the
first nine months of 2004 net income was $1.7 million, or $0.26 per diluted
share, compared to $2.4 million, or $0.38 per diluted share, last year. Net
income and earnings per share for the first nine months of 2004 include the
$1.6 million impact of the refinancing-related charge referred to above.
About Opinion Research Corporation
Founded in 1938, Opinion Research Corporation provides commercial market
research, health and demographic research for government agencies, 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/.
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 and therefore
actual results may materially differ. The company disclaims any obligation to
update any forward-looking statements whether as a result of new information,
future events, or otherwise. 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.
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except share and per share amounts)
For The Three Months For The Nine Months
Ended September 30, Ended September 30,
2004 2003 2004 2003
Revenues $48,894 $44,867 $146,255 $133,512
Cost of revenues
(exclusive of depreciation) 34,692 31,561 103,455 93,313
Gross profit 14,202 13,306 42,800 40,199
Selling, general and
administrative expenses 10,130 9,542 30,398 29,192
Depreciation and amortization 1,017 1,018 2,914 2,972
Operating income 3,055 2,746 9,488 8,035
Interest expense 1,167 1,247 6,540 3,541
Other non-operating (income)
expenses, net (85) (5) (386) 12
Income before provision for
income taxes 1,973 1,504 3,334 4,482
Provision for income taxes 972 793 1,632 2,118
Net income $1,001 $711 $1,702 $2,364
Net income per common share:
Basic $0.16 $0.12 $0.27 $0.39
Diluted $0.15 $0.11 0.26 0.38
Weighted average shares
outstanding:
Basic 6,288,649 6,090,238 6,226,654 6,068,134
Diluted 6,483,720 6,323,573 6,435,092 6,178,744
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Liabilities and
stockholders'
Assets 30-Sep-04 31-Dec-03 equity 30-Sep-04 31-Dec-03
Current assets: Current liabilities:
Cash and
equivalents $15 $2,766 Accounts payable $5,394 $5,473
Accounts
receivable 23,410 24,890 Accrued expenses 11,718 13,829
Allowance for
doubtful
accounts (268) (336) Deferred revenues 3,388 2,183
Unbilled services 18,580 14,140 Short-term
borrowings 2,000 3,000
Prepaid expenses
and other Other current
current assets 3,990 3,161 liabilities 2,152 762
Total current Total current
assets 45,727 44,621 liabilities 24,652 25,247
Non-current assets:
Fixed assets, net Long-term
of depreciation 9,767 9,099 borrowings 40,396 41,922
Goodwill 32,579 32,537 Other liabilities 1,427 1,543
Other
intangibles, net
of amortization 459 715
Other non-current
assets 7,454 8,739 Redeemable equity 8,900 8,900
Total non-current Total stockholders'
assets 50,259 51,090 equity 20,611 18,099
Total assets $95,986 $95,711 Total liabilities
and stockholders'
equity $95,986 $95,711
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
US Market UK Market Tele- Social
Research Research services Research
Three months ended September 30,
2004:
Revenues from external customers $6,023 $5,623 $3,213 $32,703
Operating income (loss) (640) 58 236 3,378
Interest and other non-operating
expenses, net
Income before provision for income
taxes
Three months ended September 30, 2003:
Revenues from external customers $5,722 $5,433 $3,757 $29,144
Operating income (loss) (1,319) 245 481 3,439
Interest and other non-operating
expenses, net
Income before provision for income
taxes
Nine months ended September 30, 2004:
Revenues from external customers $19,623 $16,681 $10,163 $95,897
Operating income (loss) (1,920) 348 926 10,104
Interest and other non-operating
expenses, net
Income before provision for income
taxes
Nine months ended September 30, 2003:
Revenues from external customers $19,397 $14,530 $10,441 $87,139
Operating income (loss) (2,529) 621 1,070 9,296
Interest and other non-operating
expenses, net
Income before provision for income
taxes
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
Total
Segments Other Consolidated
Three months ended September 30,
2004:
Revenues from external customers $47,562 $1,332 $48,894
Operating income (loss) 3,032 23 3,055
Interest and other non-operating
expenses, net 1,082
Income before provision for income
taxes $1,973
Three months ended September 30,
2003:
Revenues from external customers $44,056 $811 $44,867
Operating income (loss) 2,846 (100) 2,746
Interest and other non-operating
expenses, net 1,242
Income before provision for income
taxes $1,504
Nine months ended September 30, 2004:
Revenues from external customers $142,364 $3,891 $146,255
Operating income (loss) 9,458 30 9,488
Interest and other non-operating
expenses, net 6,154
Income before provision for income
taxes $3,334
Nine months ended September 30, 2003:
Revenues from external customers $131,507 $2,005 $133,512
Operating income (loss) 8,458 (423) 8,035
Interest and other non-operating
expenses, net 3,553
Income before provision for income
taxes $4,482
DATASOURCE: Opinion Research Corporation
CONTACT: Douglas L. Cox, EVP & Chief Financial Officer of Opinion
Research Corporation, +1-609-452-5274
Web site: http://www.opinionresearch.com/