ORCI Opinion Research

PRINCETON, N.J., Aug. 8 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), 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 DATASOURCE: Opinion Research Corporation CONTACT: Douglas L. Cox, Executive Vice President, Chief Financial Officer, Opinion Research Corporation, +1-609-452-5274 Web site: http://www.opinionresearch.com/

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