Thursday February 3, 9:29 am Eastern Time
Company Press Release
Legal Research Center Announces Consecutive
Record Quarters, Record Revenue and Earnings for
1999
MINNEAPOLIS--(BUSINESS WIRE)--Feb. 3, 2000--Legal Research Center Inc. (OTC:LRCI - news), the nation's
leading provider of outsourced legal research and writing services, today announced its 4th quarter and year-end financial
results for 1999.
For the LRC fiscal year, which ended on Dec. 31, 1999, revenues soared to $4.4 million, an increase of 83 percent over the
previous year's revenues of $2.4 million. For the same period, LRC reported net income of $724,945, or $.28 per share, 13
times the net income from a year ago of $55,240, or $.02 per share. LRC also had its third consecutive record quarter, with
revenues of $1,247,541 and net income of $144,147, or 6 cents per share compared to revenues of $823,995 and net
income of $142,705 or 6 cents a share for the same period in 1998. However, the fourth quarter net income for 1999 includes
a one-time charge against earnings of approximately $81,000 or 3 cents per share.
The company announced that its year-end EBITDA (earnings before interest, taxes, depreciation and amortization) was
$832,798, as compared to $193,699 in 1998.
``After successfully executing our corporate turnaround in 1998, this past year was an exciting year of growth for our
company,' said Christopher Ljungkull, chief executive officer of LRC. ``We are very gratified that our focus on our core
business of legal research, writing and analysis, and our careful decisions to contain spending, have paid off with extremely
favorable financial results for the year.'
In addition to achieving revenue growth of 83 percent, according to Ljungkull, LRC was able to increase its gross margins in
1999 to 53 percent, while holding overhead growth to 35 percent. The company also increased positive cashflow from
$270,000 in 1998 to $911,361 in 1999, providing a solid foundation for similar growth in 2000.
``We are pleased with our financial success in 1999, but are equally proud of the high-quality work our superb staff of
Research Attorneys is providing for LRC's clients,' said James Seidl, president of LRC. ``The ultimate validation of LRC's
service excellence and customer satisfaction is that our book of business for the coming year, which is locked in with signed
contracts, is larger than it has ever been.'
CEO Ljungkull also announced that LRC will be ramping up its marketing and advertising spending in 2000 in order to take
advantage of emerging market opportunities. Morever, he noted that the company does not expect these new investments to
negatively impact net profit. ``Rather, we expect them to help us continue to increase earnings dramatically and thereby
increase shareholder value. Currently, the S&P 500 is trading at 25 times trailing earnings, yet LRC is trading at 8 times
earnings. The S&P 500 revenues are growing at 12% per year while LRC's are growing at 83%.'
``The category of outsourced legal research continues to grow and attract capital,' said Ljungkull. ``There have been recent
announcements of multi-million-dollar investment into LRC's market niche of outsourced legal research.'
Minneapolis-based Legal Research Center (Internet site: lrci.com) offers legal research and writing services to
attorneys in corporate and private practice throughout the world. Founded in 1978, LRC's work products, those
custom-produced for customers as well as those available for resale at its Internet site, include multijurisdictional surveys, office
memoranda, and formal court-ready documents such as trial and appellate briefs, prepared by a staff of highly credentialed
attorneys, carefully selected for their research, analytical, writing and client-service skills. LRC's research attorneys are honors
graduates who have practiced law for at least two years, and many for over 20, in major law firms and corporate law
departments throughout the United States.
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LEGAL RESEARCH CENTER INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Year Ended
Ended December 31, December 31,
---------------------- ----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
Revenues $1,247,541 $ 823,995 $4,388,965 $2,403,079
Operating income 128,540 143,119 697,925 53,006
Net income $ 144,147 $ 142,705 $ 724,945 $ 55,240
Net gain per share
- basic $ 0.06 $ 0.06 $ 0.28 $ 0.02
Weighted average
common and common
equivalent shares
outstanding 2,562,454 2,287,633 2,562,454 2,287,633
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31 December 31,
1999 1998
---------- ----------
Current assets $1,918,220 $ 957,863
Furniture & equipment, net 21,243 43,727
Other assets 129,247 282,695
Total assets $2,068,710 $1,284,285
Current liabilities $ 176,935 $ 145,857
Long-term liabilities -- 200,000
Stockholders' equity 1,891,775 938,428
Total liabilities and shareholders' equity $2,068,710 $1,284,285 |
