ORCI Opinion Research

Opinion Research Reports Improved Financial Results for 2004 PRINCETON, N.J., Feb. 24 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), today announced financial results for the fourth quarter and year ended December 31, 2004. Summarizing the year's results, Chairman and CEO John F. Short said, "We are pleased with our results for the year, with revenues increasing 9% over 2003 and operating income increasing significantly as compared to 2003, reflecting the strong growth and profitability in our social research business and the improvement in our market research business." Net income totaled $2.4 million, or $0.38 per diluted share, in 2004 versus a net loss of $8.9 million, or $1.47 per diluted share, in 2003. Net income in 2003 was impacted by $11.5 million, net of tax benefits, for a goodwill impairment charge. Revenues Revenues for the fourth quarter were $49.3 million versus $46.0 million in the prior year's fourth quarter. Social research revenues were $32.3 million versus $28.5 million in last year's fourth quarter. Market research revenues totaled $14.4 million versus $13.2 million in the prior year's fourth quarter. Teleservices revenues were $2.6 million versus $4.4 million in last year's fourth quarter. Revenues for the full year 2004 were $195.6 million versus $179.6 million for the full year 2003. Social research revenues were $128.2 million versus $115.6 million last year. Market research revenues totaled $54.6 million versus $49.1 million in the prior year. Teleservices revenues were $12.7 million versus $14.9 million last year. Income Net income for the fourth quarter was $0.7 million, or $0.11 per diluted share, versus a net loss of $11.3 million, or $1.85 per diluted share, in last year's fourth quarter. Net income for the full year 2004 was $2.4 million, or $0.38 per diluted share, versus a net loss of $8.9 million, or $1.47 per diluted share, for the full year 2003. Results for the fourth quarter and full year 2003 were impacted by $11.5 million, net of tax benefits, for a goodwill impairment charge. The income tax provision in 2004 is higher than statutory rates and the income tax benefit in 2003 is lower than statutory rates due to the fact that the company is not providing tax benefits on non-US and state losses and the non-deductibility of certain goodwill impairment charges in 2003. Business Outlook Mr. Short commented, "We believe that the outlook for our market research business is improving, based on increased new business bookings and backlog, and we expect continued good performance from our social research business." The company expects revenues in 2005 to be between $200 and $205 million, net income to be between $4.4 and $4.9 million and diluted earnings per share to be between $0.65 and $0.73. These net income and earnings per share expectations do not include the impact of a potential common stock offering in 2005. 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. About Opinion Research Corporation Founded in 1938, Opinion Research Corporation provides health and demographic research for government agencies, commercial market research, information services, teleservices and consulting. The company is a pioneering leader in the science of market and social research and has built a worldwide data-collection network. Further information is available at http://www.opinionresearch.com/ . Forward-looking Statements This 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. Many of the factors that will determine the company's financial results are beyond the ability of the company to control or predict. These statements are subject to risks and uncertainties, including general economic conditions, the loss of one or more of our large clients, the impact of litigation and the impact of a common stock offering; therefore, actual results may materially differ. Other 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. The company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. OPINION RESEARCH CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (in thousands, except share and per share amounts) For The Three Months For The Year Ended December 31, Ended December 31, 2003 2004 2003 2004 Revenues $46,045 $49,299 $179,557 $195,554 Cost of revenues (exclusive of depreciation) 32,577 36,688 125,890 140,143 Gross profit 13,468 12,611 53,667 55,411 Selling, general and administrative expenses 10,245 9,372 39,437 39,770 Depreciation and amortization 1,052 1,065 4,024 3,979 Goodwill impairment charge 16,317 0 16,317 0 Operating income (loss) (14,146) 2,174 (6,111) 11,662 Interest expense 1,406 1,151 4,947 7,691 Other non-operating (income) expenses, net 37 (89) 49 (475) Income (loss) before provision for income taxes (15,589) 1,112 (11,107) 4,446 Provision for income taxes (4,283) 388 (2,165) 2,020 Net income (loss) $(11,306) $724 $(8,942) $2,426 Net income (loss) per common share: Basic $(1.85) $0.11 $(1.47) $0.39 Diluted $(1.85) $0.11 (1.47) 0.38 Weighted average shares outstanding: Basic 6,109,398 6,337,502 6,078,535 6,254,517 Diluted 6,109,398 6,480,303 6,078,535 6,445,301 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Liabilities and stockholders' Assets 31-Dec-03 31-Dec-04 equity 31-Dec-03 31-Dec-04 Accounts receivable, net of Liabilities other allowance $38,694 $41,842 than borrowings $23,790 $22,102 Fixed assets, net of depreciation 9,099 10,105 Total borrowings 44,922 42,286 Goodwill and other intangibles, net 33,252 33,169 Redeemable equity 8,900 8,900 Total stockholders' Other assets 14,666 10,515 equity 18,099 22,343 Total assets Total liabilities and stockholders' $95,711 $95,631 equity $95,711 $95,631 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) US Market UK Market Tele- Social Total Consol- Research Research services Research Segments Other idated Three months ended Dec- ember 31, 2003: Revenues from external customers $6,391 $5,957 $4,427 $28,452 $45,227 $818 $46,045 Goodwill impairment charge (6,000) - (10,000) - (16,000) (317) (16,317) Operating income (loss) (8,228) 546 (9,043) 2,862 (13,863) (283) (14,146) Interest and other non-operating expenses, net 1,443 Loss before provision for income taxes $(15,589) Three months ended December 31, 2004: Revenues from external customers $6,346 $6,264 $2,563 $32,341 $47,514 $1,785 $49,299 Goodwill impairment charge - - - - - - - Operating income (loss) (1,624) 240 171 3,329 2,116 58 2,174 Interest and other non-operating expenses, net 1,062 Income before provision for income taxes $1,112 Year ended December 31, 2003 Revenues from external customers $25,788 $20,487 $14,868 $115,591 $176,734 $2,823 $179,557 Goodwill impairment charge (6,000) - (10,000) - (16,000) (317) (16,317) Operating income (loss) (10,757) 1,167 (7,973) 12,158 (5,405) (706) (6,111) Interest and other non-operating expenses, net 4,996 Loss before provision for income taxes $(11,107) Year ended December 31, 2004 Revenues from external customers $25,969 $22,945 $12,726 $128,238 $189,878 $5,676 $195,554 Goodwill impairment charge - - - - - - - Operating income (loss) (3,544) 588 1,097 13,433 11,574 88 11,662 Interest and other non-operating expenses, net 7,216 Income before provision for income taxes $4,446 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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