PRINCETON, N.J., Aug. 8 /PRNewswire-FirstCall/ -- Opinion Research Corporation , today announced financial results for the second quarter ended June 30, 2006.
Revenues increased to $50 million and income from continuing operations was $777,000 or $0.14 per diluted common share.
Revenues
Consolidated revenues were $50 million in the second quarter of 2006, increasing from $49.0 million in the second quarter of 2005. Social research revenues were $36.6 million, increasing from $36.2 million in the second quarter of 2005. Market research revenues totaled $13.4 million, increasing from $12.8 million in the second quarter of last year.
Income from Continuing Operations
Income from continuing operations was $777,000, as compared to $1.6 million in the second quarter of 2005.
Contributing to the decline in income from continuing operations is expense of $163,000 reflecting the adoption of the Financial Accounting Standards Board Statement 123(R) on share-based payments, interest expense of $700,000 on subordinated debt issued in July 2005, and a higher effective tax rate which reduced income from continuing operations by $124,000.
Discontinued Operations
Discontinued operations produced a gain of $8,000 in the second quarter of 2006 as compared to a loss of $245,000 in the second quarter of last year.
Income per Common Share
Income from continuing operations was $0.14 per diluted share in the second quarter of 2006, as compared to $0.24 per diluted share in the second quarter of 2005.
The gain from discontinued operations was $0.00 per diluted share in the second quarter of 2006 compared to a loss from discontinued operations of $0.04 per diluted share in the second quarter of last year.
Net income per diluted share was $0.14 in the second quarter of 2006, as compared to $0.20 in the second quarter of 2005.
Six Months' Results
Revenues for the first six months were $97.3 million, increasing from $95.2 million for the first six months of 2005. Income from continuing operations was $1.5 million or $0.28 per diluted share for the first six months of 2006 as compared to $2.0 million or $0.30 per diluted share for the comparable period in 2005. Loss from discontinued operations was $138,000 or $0.03 per diluted share in the first six months of 2006 as compared to $495,000 or $0.08 per diluted share in the first six months of 2005. Net income per diluted share was $0.25 for the six months ended June 30, 2006, as compared to $0.22 in the comparable period in 2005.
Conference Call
In view of the previously announced acquisition agreement with infoUSA the conference call scheduled for August 9 has been cancelled.
About Opinion Research Corporation
Founded in 1938, Opinion Research Corporation provides commercial market research, health and demographic research for government agencies, information services and consulting. The company is a pioneering leader in the science of market and social research and has built an international organization to support market intelligence in both public and commercial markets. Further information is available at http://www.opinionresearch.com/.
Forward-looking Statements
This press 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. 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 on the Investor Relations section of the Company's website or 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 Six Months
Ended June 30, Ended June 30,
2005 2006 2005 2006
Revenues $48,954 $49,982 $95,197 $97,336
Cost of revenues, exclusive of
depreciation 35,181 36,289 68,505 70,411
Gross profit 13,773 13,693 26,692 26,925
Selling, general and
administrative expenses 9,389 9,538 18,585 18,738
Depreciation and amortization 829 968 1,607 1,893
Operating income 3,555 3,187 6,500 6,294
Interest and other non-
operating expenses, net 875 1,664 3,177 3,294
Income before provision
for income taxes 2,680 1,523 3,323 3,000
Provision for income taxes 1,094 746 1,345 1,470
Income from continuing
operations $ 1,586 $ 777 $ 1,978 $ 1,530
Discontinued Operations
(Loss) income from
discontinued operations,
net of tax $ (245) $ 8 $ (495) $ (138)
Net income $ 1,341 $ 785 $ 1,483 $ 1,392
Basic Earnings per common
share:
Income from continuing
operations $ 0.25 $ 0.14 $ 0.31 $ 0.28
(Loss) income from
discontinued operations $ (0.04) $ 0.00 $ (0.08) $ (0.03)
Net income per common
share $ 0.21 $ 0.14 $ 0.23 $ 0.26
Diluted Earnings per common
share:
Income from continuing
operations $ 0.24 $ 0.14 $ 0.30 $ 0.28
(Loss) income from
discontinued operations $ (0.04) $ 0.00 $ (0.08) $ (0.03)
Net income per common
share $ 0.20 $ 0.14 $ 0.22 $ 0.25
Weighted average shares
outstanding:
Basic 6,436,411 5,447,351 6,420,655 5,418,065
Diluted 6,682,561 5,533,726 6,644,157 5,483,422
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Assets 31-Dec-05 30-Jun-06
Current assets:
Cash and equivalents $ - $ 151
Accounts receivable 26,959 26,344
Allowance for doubtful accounts (58) (9)
Unbilled services 17,600 22,470
Prepaid expenses and other current
assets 4,474 4,631
Assets of discontinued operations 505 8
Total current assets 49,480 53,595
Non-current assets:
Fixed assets, net of depreciation 8,833 8,595
Goodwill 26,903 27,055
Other intangibles, net of
amortization 224 225
Other non-current assets 6,516 6,177
Assets of discontinued operations 212 -
Total non-current assets 42,688 42,052
Total assets $92,168 $95,647
Liabilities and stockholders' equity 31-Dec-05 30-Jun-06
Current liabilities:
Accounts payable $ 6,269 $ 7,382
Accrued expenses 11,705 10,845
Deferred revenues 4,156 4,331
Short-term borrowings 3,000 3,000
Other current liabilities 3,199 2,172
Liabilities of discontinued operations 586 -
Total current liabilities 28,915 27,730
Long-term borrowings 55,321 56,163
Other liabilities 1,517 2,689
Liabilities of discontinued operations 154 -
Total stockholders' equity 6,261 9,065
Total liabilities and stockholders' equity $ 92,168 $ 95,647
OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Segment Information
(in thousands)
US UK
Market Market Social Total Divested Consol-
Research Research Research Segments Other Entities idated
Three months
ended
June 30,
2005:
Revenues from
external
customers $6,559 $5,702 $36,196 $48,457 $497 $48,954
Operating
(loss)
income (139) 102 3,711 3,674 (119) 3,555
Interest and
other
non-
operating
expense,
net 875
Income before
income tax
expense 2,680
Provision for
income tax
expense
- continuing
operations 1,094
Income from
continuing
operations 1,586
Loss from
discontinued
operations (245) (245)
Net income 1,341
Three months
ended
June 30,
2006:
Revenues from
external
customers $7,569 5,495 $36,554 $49,618 $364 $49,982
Operating
(loss)
income (554) 200 3,726 3,372 (185) 3,187
Interest and
other
non-operating
expense, net 1,664
Income before
income tax
expense 1,523
Provision for
income tax
expense
- continuing
operations 746
Income from
continuing
operations 777
Income from
discontinued
operations 8 8
Net income 785
Six months
ended
June 30,
2005:
Revenues from
external
customers $12,962 $11,139 $70,054 $94,155 $1,042 $95,197
Operating
(loss)
income (705) 74 7,352 6,721 (221) 6,500
Interest and
other
non-operating
expense, net 3,177
Income before
income tax
expense 3,323
Provision for
income tax
expense
- continuing
operations 1,345
Income from
continuing
operations 1,978
Loss from
discontinued
operations (495) (495)
Net income 1,483
Six months
ended
June 30,
2006:
Revenues from
external
customers $14,151 $11,116 $71,218 $96,485 $851 $97,336
Operating
(loss)
income (1,095) 324 7,416 6,645 (351) 6,294
Interest and
other
non-operating
expense, net 3,294
Income before
income tax
expense 3,000
Provision for
income tax
expense
- continuing
operations 1,470
Income from
continuing
operations 1,530
Loss from
discontinued
operations (138) (138)
Net income 1,392
