PRINCETON, N.J., Oct. 31 /PRNewswire-FirstCall/ -- Opinion Research
Corporation (NASDAQ:ORCI), today announced financial results for
the third quarter ended September 30, 2005. Revenues Revenues for
the quarter were $48.7 million versus $48.9 million in the prior
year's third quarter. Social research revenues were $34.1 million
versus $32.7 million in last year's third quarter. Market research
revenues totaled $12.9 million versus $13.0 million in the prior
year's third quarter. Teleservices revenues were $1.8 million
versus $3.2 million in last year's third quarter. Income The
Company reported a net loss for the quarter of $4.65 million. This
includes an impairment provision for the remaining goodwill in the
teleservices segment, the previously announced write-off of
expenses incurred in a postponed equity offering and a tax accrual
adjustment due to a change in the estimated annual tax rate, which
together reduced net income by approximately $5.0 million. Net loss
per diluted common share was $2.58. The above items and the impact
from the previously announced repurchase of the LLR interests
reduced earnings per diluted common share by $2.64. Net income and
diluted earnings per share for the third quarter of 2004 were $1.0
million and $0.15 respectively. Nine Month's Results For the first
nine months of 2005, revenues were $149.4 million compared to
$146.3 million in the first nine months of 2004. The Company
reported a net loss for the nine months of $3.2 million. This
includes the goodwill impairment provision, a first quarter
refinancing charge and the write-off of the equity offering
expenses which together reduced net income by approximately $5.3
million. Net loss per diluted common share was $2.12. The above
items and the impact from the repurchase of the LLR interests
reduced earnings per diluted common share by $2.45. Net income and
diluted earnings per share for the first nine months of 2004 were
$1.7 million and $0.26 respectively. Last year's nine months was
impacted by a refinancing charge that reduced net income by $1.5
million and diluted earnings per share by $0.24. Business Outlook
Summarizing the quarter's results, Chairman and CEO, John F. Short,
said, "We are pleased with the performance of our largest segment,
social research, and are able to report that bookings of new social
research business in the first nine months were over $160 million,
a 50% increase over the same period in 2004. As a result, our
social research backlog is currently $324 million. We are
disappointed with the slow turnaround in market research and
continued decline in teleservices but believe that we have taken
the appropriate action to improve these businesses." The Company
expects revenues in 2005 to be around $198 to $200 million, net
loss to be between $2.6 and $2.8 million and net loss per share to
be between $2.10 and $2.14. These expectations include the third
quarter goodwill impairment, the write-off of the equity offering
expenses and the charge to net income available to common shares
due to the repurchase of the LLR interests, and the first quarter
refinancing charge, which together reduce net income by $5.3
million and diluted earnings per share by $2.54. The fourth quarter
is expected to be profitable but due to the reduction in shares
late in the year the net loss per share for the year may not
decline from that reported for the first nine months. 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. Conference Call Chairman and
Chief Executive Officer John F. Short and Chief Financial Officer
Douglas L. Cox will conduct an investor conference call at 4:00
p.m. (EST) on Monday, October 31. The dial-in number for the live
conference call will be (866) 770-7120 (617) 213-8065 outside the
U.S. and Canada) and enter conference passcode 94354526. 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 6:00 p.m. on October 31 until 11:59
p.m. on November 7. To listen to the telephone replay, dial (888)
286-8010 (617) 801-6888 outside the U.S. and Canada) and enter
conference passcode 75884966. 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 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 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
2005 2004 2005 Revenues $48,894 $48,697 $146,255 $149,417 Cost of
revenues (exclusive of depreciation) 34,692 35,505 103,455 107,210
Gross profit 14,202 13,192 42,800 42,207 Selling, general and
administrative expenses 10,130 9,912 30,398 31,153 Depreciation and
amortization 1,017 1,068 2,914 3,060 Goodwill impairment charge -
5,530 - 5,530 Operating income (loss) 3,055 (3,318) 9,488 2,464
Interest expense 1,167 1,405 6,540 4,539 Other non-operating
(income) expense, net (85) 1,373 (386) 1,324 Income (loss) before
income tax expense (benefit) 1,973 (6,096) 3,334 (3,399) Income tax
expense (benefit) 972 (1,442) 1,632 (228) Net income (loss) $1,001
$(4,654) $1,702 $(3,171) Repurchased LLR interests - (9,904) -
(9,904) Net income (loss) available to common shareholders $1,001
$(14,558) $1,702 $(13,075) Net income (loss) per common share:
Basic $0.16 $(2.58) $0.27 $(2.12) Diluted $0.15 $(2.58) $0.26
$(2.12) Weighted average shares outstanding: Basic 6,288,649
5,642,665 6,226,654 6,158,475 Diluted 6,483,720 5,642,665 6,435,092
6,158,475 OPINION RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (in thousands) 30-Sep-05 31-Dec-04
30-Sep-05 31-Dec-04 Assets Liabilities and stockholders' equity
Current assets: Current liabilities: Cash and Accounts payable
$5,207 $6,254 equivalents $1,718 $467 Accrued expenses 10,289 9,191
Accounts Deferred revenues 3,950 4,344 receivable 24,583 26,001
Short-term Allowance for borrowings 3,000 2,000 doubtful Other
current accounts (53) (93) liabilities 3,181 2,823 Unbilled Total
current services 17,927 17,986 liabilities 25,627 24,612 Prepaid
expenses and other Long-term current assets 2,898 3,672 borrowings
56,927 40,286 Total current Other liabilities 1,584 1,542 assets
47,073 48,033 Non-current assets: Redeemable equity - 8,900 Fixed
assets, net of depreciation 10,015 10,105 Total stockholders'
Goodwill 26,970 32,748 equity 7,422 22,343 Other intangibles, net
Total liabilities of amortization 243 421 and stockholders' Other
non-current equity $91,560 $97,683 assets 7,259 6,376 Total
non-current assets 44,487 49,650 Total assets $91,560 $97,683
OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information
(in thousands) US UK Market Market Tele- Social Total Consol-
Research Research Services Research Segments Other idated Three
months ended September 30, 2004: Revenues from external customers
$6,023 $5,623 $3,213 $32,703 $47,562 $1,332 $48,894 Operating
(loss) income (640) 58 236 3,378 3,032 23 3,055 Interest and other
non-operating expenses, net 1,082 Income before income tax expense
$1,973 Three months ended September 30, 2005: Revenues from
external customers $6,072 $6,097 $1,750 $34,064 $47,983 $714
$48,697 Goodwill impairment charge - - (5,530) - (5,530) - (5,530)
Operating (loss) income (685) 210 (5,865) 3,302 (3,038) (280)
(3,318) Interest and other non- operating expenses, net 2,778 Loss
before income tax benefit $(6,096) Nine months ended September 30,
2004: Revenues from external customers $19,623 $16,681 $10,163
$95,897 $142,364 $3,891 $146,255 Operating (loss) income (1,920)
348 926 10,104 9,458 30 9,488 Interest and other non-operating
expenses, net 6,154 Income before income tax expense $3,334 Nine
months ended September 30, 2005: Revenues from external customers
$19,266 $17,236 $6,234 $104,118 $146,854 $2,563 $149,417 Goodwill
impairment charges - - (5,530) - (5,530) - (5,530) Operating (loss)
income (1,390) 284 (6,254) 10,654 3,294 (830) 2,464 Interest and
other non- operating expenses, net 5,863 Loss before income tax
benefit $(3,399) DATASOURCE: Opinion Research Corporation CONTACT:
Douglas L. Cox, Executive Vice President, Chief Financial Officer
of Opinion Research Corporation, +1-609-452-5274 Web site:
http://www.opinionresearch.com/
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