ORCI Opinion Research

PRINCETON, N.J., May 9 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), today announced improved financial results for the first quarter ended March 31, 2006. Income from continuing operations increased to $0.14 per diluted common share, or $753,000, from $0.06 per diluted common share, or $393,000, in the first quarter of 2005. Revenues increased to $47.3 million from $46.2 million in the first quarter of last year. Revenues Social research revenues were $34.7 million, increasing from $33.9 million in the first quarter of 2005. Market research revenues totaled $12.7 million, increasing from $12.4 million in the first quarter of last year. Income from Continuing Operations Income from continuing operations was $753,000, increasing from $393,000 in the first quarter of 2005. In addition to increased operating income on increased revenues, a principal reason for the improved results in the quarter was the absence of refinancing costs incurred in the first quarter of 2005, offset in part by interest on subordinated debt issued in July 2005. The 2005 refinancing costs have been recovered by subsequent savings resulting from the refinancing. Included in this quarter's results is expense of $127,000 reflecting our adoption of the Financial Accounting Standards Board Statement 123(R) on share-based payments. Discontinued Operations The loss from discontinued operations was $146,000 as compared to a loss from discontinued operations of $251,000 in the first quarter of last year. Income per Common Share Income from continuing operations was $0.14 per diluted share, increasing from $0.06 per diluted share in the first quarter of 2005, reflecting both the benefit of reduced shares outstanding and improved performance. Loss from discontinued operations was $0.03 per diluted share as compared to a loss from discontinued operations of $0.04 per diluted share in the first quarter of last year. Net income per diluted share was $0.11, increasing from $0.02 in the first quarter of 2005. 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 Wednesday, May 10. The dial-in number for the live conference call will be (866) 277-1182 or (617) 597-5359 outside the U.S. and Canada. The conference passcode is 16156392. 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.earnings.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 May 10 until 11:59 p.m. on May 17. To listen to the telephone replay dial (888) 286-8010 or (617) 801-6888 outside the U.S. and Canada and enter conference passcode 12490707. 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 Ended March 31, 2005 2006 Revenues $46,243 $47,354 Cost of revenues, exclusive of depreciation 33,324 34,122 Gross profit 12,919 13,232 Selling, general and administrative expenses 9,196 9,200 Depreciation and amortization 778 925 Operating income 2,945 3,107 Interest and other non-operating expenses, net 2,302 1,630 Income before provision for income taxes 643 1,477 Provision for income taxes 250 724 Income from continuing operations $393 $753 Discontinued Operations Loss from discontinued operations, net of tax $(251) $(146) Net income $142 $607 Basic Earnings per common share: Income from continuing operations $0.06 $0.14 Loss from discontinued operations $(0.04) $(0.03) Net income per common share $0.02 $0.11 Diluted Earnings per common share: Income from continuing operations $0.06 $0.14 Loss from discontinued operations $(0.04) $(0.03) Net income per common share $0.02 $0.11 Weighted average shares outstanding: Basic 6,404,723 5,388,454 Diluted 6,605,578 5,432,793 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Assets 31-Dec-05 31-Mar-06 Current assets: Cash and equivalents $- $996 Accounts receivable 26,959 23,911 Allowance for doubtful accounts (58) (4) Unbilled services 17,600 20,308 Prepaid expenses and other current assets 4,474 4,479 Assets of discontinued operations 505 316 Total current assets 49,480 50,006 Non-current assets: Fixed assets, net of depreciation 8,833 9,052 Goodwill 26,903 26,934 Other intangibles, net of amortization 224 221 Other non-current assets 6,516 6,191 Assets of discontinued operations 212 - Total non-current assets 42,688 42,398 Total assets $92,168 $92,404 Liabilities and stockholders' equity 31-Dec-05 31-Mar-06 Current liabilities: Accounts payable $6,269 $6,599 Accrued expenses 10,758 8,428 Deferred revenues 4,156 4,172 Short-term borrowings 3,000 3,000 Other current liabilities 3,143 2,499 Liabilities of discontinued operations 586 152 Total current liabilities 27,912 24,850 Long-term borrowings 55,321 57,744 Other liabilities 2,520 2,607 Liabilities of discontinued operations 154 - Total stockholders' equity 6,261 7,203 Total liabilities and stockholders' equity $92,168 $92,404 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) US UK Market Market Social Total Research Research Research Segments Three months ended March 31, 2005: Revenues from external customers $6,403 $5,437 $33,858 $45,698 Operating (loss) income (566) (28) 3,641 3,047 Interest and other non-operating expenses, net Income from continuing operations, net of tax expense of $250 Loss from discontinued operations, net of tax benefit of $132 Net income Three months ended March 31, 2006: Revenues from external customers $6,582 $5,621 $34,664 $46,867 Operating (loss) income (541) 124 3,690 3,273 Interest and other non-operating expenses, net Income from continuing operations, net of tax expense of $724 Loss from discontinued operations, net of tax expense of $1 Net income Divested Other Entities Consolidated Three months ended March 31, 2005: Revenues from external customers $545 $46,243 Operating (loss) income (102) 2,945 Interest and other non-operating expenses, net 2,302 Income from continuing operations, net of tax expense of $250 393 Loss from discontinued operations, net of tax benefit of $132 (251) (251) Net income 142 Three months ended March 31, 2006: Revenues from external customers $487 $47,354 Operating (loss) income (166) 3,107 Interest and other non-operating expenses, net 1,630 Income from continuing operations, net of tax expense of $724 753 Loss from discontinued operations, net of tax expense of $1 (146) (146) Net income 607 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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