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/
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