Natl Information EGOV -0.07 -0.08 -0.09 65.2%
National Information Consortium, Inc. (Nasdaq: EGOV) ("NIC"), the leading provider of Internet-based electronic government services, today announced financial results for the three months and fiscal year ended December 31, 1999.
Total revenue for the three months ended December 31, 1999 was $16.5 million, a 65 percent increase over total revenue of $10 million for the three months ended December 31, 1998. Fourth quarter 1999 revenue increased 5 percent over total revenue of $15.7 million for the third quarter ended September 30, 1999. For the year ended December 31, 1999 total revenue increased 56 percent to $57 million over 1998 pro forma revenue of $36.5 million.
"Revenue met expectations as our state portal business always encounters seasonality in the fourth quarter," said Kevin Childress, Chief Financial Officer. "The fourth quarter comparison showing a 65 percent increase is a better indication of the acceleration in our growth."
The net loss for the three months ended December 31, 1999 narrowed to $3.5 million, or $0.07 per share, as compared to a loss of $3.9 million, or $0.09 per share, for the three months ended December 31, 1998. The net loss for the year ended December 31, 1999 was $10.7 million, or $0.23 per share, as compared to a pro forma net loss of $9.4 million, or $0.22 per share, for the year ended December 31, 1998.
EBITDA (defined as earnings (losses) before interest, taxes, depreciation, amortization), excluding stock compensation and the non-cash charges discussed below, for the three months ended December 31, 1999 was ($613,000) as compared to ($44,000) for the three months ended December 31, 1998. The decrease in fourth quarter EBITDA is due primarily to infrastructure investments for future growth. EBITDA was $811,000 for the year ended December 31, 1999 compared to a pro forma EBITDA of $979,000 for the year ended December 31, 1998. The current year includes a previously disclosed non-cash charge of $900,000 taken in the second quarter and an additional charge of $225,000 taken in the fourth quarter, which were recorded as part of the service development and operations expenses for anticipated costs in excess of revenues under NIC's application development contracts. The prior year also includes a $1,256,000 non-cash charge taken in the fourth quarter for anticipated losses on application development contracts.
"We are building strong leadership momentum in the eGovernment market due to the strategic investments we made in 1999," said Jim Dodd, president and chief executive officer, NIC. "We expect rapid and scalable growth to continue as we deliver on our promise to make all government services e-services."
NIC builds and manages self-funded Internet portals in partnership with government agencies that allow millions of businesses and individuals to access free public information and conduct transactions online such as automobile registration, license renewals and tax filings. NIC pioneered the eGovernment portal model nearly ten years ago. The company has been strategically building a total end-to-end eGovernment solution that extends from local to federal government and from discrete solutions to enterprise- wide partnerships.
In addition to the acquisition of eFed, NIC made several strategic investments over the last six months and won two new state partnerships including Hawaii and Idaho. The following highlights were announced within the last six months: -- Bank of America Corporation, through its subsidiary Bank of America, N.A. (USA), announced it had signed a letter of intent with eFed, a wholly-owned subsidiary of NIC, to create a limited liability company to offer state and local governments the first Web-based government-to- business procurement, payment and reconciliation solution. The new service offers state and local government customers the opportunity to place orders online through their preferred suppliers, request a quote from businesses for services, process transactions, initiate payments and reconcile accounts. Customers are able to automate the procurement process through a secure Internet connection using the eFed real-time, browser-based shopping system.
-- NIC announced that it had merged its Application Services Division with
Conquest Softworks, LLC. The combined company holds contracts with
eleven states and dozens of local governments for web-enabling the
back-office systems and processes for business-to-government filings.
Conquest Softworks, based in Durango, CO, is a premiere provider of
software applications and services for electronic filings and document
management solutions for government.
-- NIC announced that the Office of the Governor of Hawaii has entered
into a contract with NIC for an enterprise-wide state portal solution
called Access Hawaii. To manage the contract, NIC has created a new
subsidiary, Hawaii Information Consortium, Inc., a Hawaii corporation,
which will be based in Hawaii's capitol city, Honolulu.
-- NIC announced that the Idaho Department of Administration, Division of
Purchasing, entered into a contract with NIC for an enterprise-wide
state portal solution called Access Idaho. To manage the new contract,
NIC has created a new subsidiary, the Idaho Information Consortium,
Inc., an Idaho corporation, which will be based in Idaho's capitol
city, Boise.
-- NIC announced it has formed a strategic alliance with Oracle Corp. to
help governments accelerate the pace at which they adopt Internet
technologies. NIC and Oracle are jointly promoting web-centric,
transaction-based solutions to federal, state and local governments.
NIC will implement the Oracle Internet Platform for e-business
solutions in its eGovernment applications and Oracle will assist NIC in
promoting electronic government public/private partnerships through its
government solutions marketing and sales efforts.
"Our growth strategy is centered on the ability to capitalize on our existing market share leadership position in government Internet portals and, at the same time, develop and deliver next-generation eGovernment applications and services," said Dodd. "In the year 2000, our shareholders can expect NIC to extend our value and leadership position to new markets and new opportunities."
About NIC National Information Consortium is the leading provider of Internet-based electronic government services. NIC improves the relationship between people and their government by helping federal, state and local agencies use the Internet to reduce costs and deliver quality services to citizens and businesses. Since its inception in 1991, NIC has developed over a hundred e-government solutions and currently has partnerships with eleven states. Additional information about NIC is available at nicusa.com. NATIONAL INFORMATION CONSORTIUM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
000's
Three-months ended Year ended
December 31, December 31,
1999 1998 1999 1998 1998
Pro forma
Revenues $ 16,509 $ 9,996 $ 56,966 $ 28,624 $ 36,532
Cost of revenues 11,696 7,711 42,191 21,211 27,394
Gross profit 4,813 2,285 14,775 7,413 9,138
Operating expenses:
Service development
and operations 1,867 2,268 5,876 3,885 4,327
Selling, general
and
administrative 3,784 1,317 9,213 4,242 5,088
Stock compensation 453 310 3,188 569 574
Depreciation and
amortization 4,559 1,968 10,968 5,922 7,887
Total operating
expenses 10,663 5,863 29,245 14,618 17,876
Operating loss (5,850) (3,578) (14,470) (7,205) (8,738)
Other income (expense):
Interest expense (24) (38) (169) (88) (105)
Other income, net 1,325 17 2,493 56 70
Total other income
(expense) 1,301 (21) 2,324 (32) (35)
Loss before income
taxes (4,549) (3,599) (12,146) (7,237) (8,773)
Income tax expense
(benefit) (1,063) 289 (1,416) 659 659
Net loss $ (3,486) $ (3,888) $(10,730) $ (7,896) $ (9,432)
Net loss per share:
Basic and
diluted $ (0.07) $ (0.09) $ (0.23) $ (0.21) $ (0.22)
Weighted average
shares
outstanding 53,130 42,066 47,278 37,242 41,950
On March 31, 1998, National Information Consortium exchanged its common shares for the common shares of five affiliated companies.
Prior to April 1, 1998, the Company's historical financial information reflects the results of one of those companies. The proforma results combine all of the companies using the purchase method of accounting as if the other four affiliated companies were acquired on January 1, 1998. Earnings Conference Call Conference date: Today, February 3, 2000
Conference time: 4:00 p.m. CT / 5:00 p.m. ET
NIC executives: Jim Dodd, President and Chief Executive Officer
Kevin Childress, Chief Financial Officer
Teleconference: Participants should dial-in to (888) 676-8686 and
enter the conference ID 1113705. All participants
should dial *6 to join the call.
Audio Webcast: Attendees may listen to the call over the Internet
with VStream at
vsnetcall.vstream.com.
Your conference ID number is 1113705.
To ask questions of NIC executives, individual and
institutional investors are encouraged to participate
in the conference call using the Web. All questions
must be submitted through the Web. Click on the
Question link to submit your question.
You may also listen to the conference call at
streetevents.com. You will find the link
from the StreetEvents home page or search for Nasdaq
symbol EGOV.
Replay: (800) 642-1687 and enter ID# 703430 or at |
