ORCI Opinion Research

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/

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