ORCI Opinion Research

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/

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