ORCI Opinion Research

Opinion Research Reports a 41% Increase in Net Income on a 9% Increase in Revenues for the Third Quarter PRINCETON, N.J., Oct. 28 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), today announced financial results for the third quarter ended September 30, 2004. Summarizing the quarter's results, Chairman and CEO John F. Short said, "We are pleased with our performance in the third quarter with revenues increasing 9% and net income increasing 41% over the third quarter of last year." Revenues Revenues for the third quarter were $48.9 million versus $44.9 million in the prior year's third quarter. Social research revenues were $32.7 million versus $29.1 million in last year's third quarter. Commercial market research revenues totaled $13.0 million versus $12.0 million in the prior year's third quarter. Teleservices revenues were $3.2 million versus $3.8 million in last year's third quarter. Income Operating income for the third quarter was $3.1 million, versus $2.7 million in the prior year's third quarter, an increase of 11%. Net income was $1.0 million in the quarter, as compared to $.7 million in the third quarter last year. Net income per diluted share was $0.15 versus net income per diluted share of $0.11 in the prior year's third quarter. Business Outlook Mr. Short commented, "We believe that the outlook for our commercial market research business is improving, based on increasing backlog, the volume of new business inquiries we are receiving and the proposals we are submitting to potential clients. We also expect our social research business to continue to meet our expectations." The company has increased its revenue guidance for 2004 to a range of $194 million to $196 million and has narrowed the range of its earlier net income and earnings per share guidance for 2004 to $3.0 million to $3.2 million and $0.46 to $0.50 per diluted share. These include a second quarter 2004 refinancing-related charge which reduced net income by $1.6 million and diluted earnings per share by $0.26. This guidance does not include the impact of the previously announced potential common stock offering. The statements above concerning the company's business outlook for 2004 are based on current expectations. These statements are forward-looking and actual results may differ materially. Nine-Month Results For the first nine months of 2004, revenues were $146.3 million compared to $133.5 million in the first nine months of 2003, an increase of 10%. For the first nine months of 2004 net income was $1.7 million, or $0.26 per diluted share, compared to $2.4 million, or $0.38 per diluted share, last year. Net income and earnings per share for the first nine months of 2004 include the $1.6 million impact of the refinancing-related charge referred to above. About Opinion Research Corporation Founded in 1938, Opinion Research Corporation provides commercial market research, health and demographic research for government agencies, 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/. 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 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 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 Nine Months Ended September 30, Ended September 30, 2004 2003 2004 2003 Revenues $48,894 $44,867 $146,255 $133,512 Cost of revenues (exclusive of depreciation) 34,692 31,561 103,455 93,313 Gross profit 14,202 13,306 42,800 40,199 Selling, general and administrative expenses 10,130 9,542 30,398 29,192 Depreciation and amortization 1,017 1,018 2,914 2,972 Operating income 3,055 2,746 9,488 8,035 Interest expense 1,167 1,247 6,540 3,541 Other non-operating (income) expenses, net (85) (5) (386) 12 Income before provision for income taxes 1,973 1,504 3,334 4,482 Provision for income taxes 972 793 1,632 2,118 Net income $1,001 $711 $1,702 $2,364 Net income per common share: Basic $0.16 $0.12 $0.27 $0.39 Diluted $0.15 $0.11 0.26 0.38 Weighted average shares outstanding: Basic 6,288,649 6,090,238 6,226,654 6,068,134 Diluted 6,483,720 6,323,573 6,435,092 6,178,744 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Liabilities and stockholders' Assets 30-Sep-04 31-Dec-03 equity 30-Sep-04 31-Dec-03 Current assets: Current liabilities: Cash and equivalents $15 $2,766 Accounts payable $5,394 $5,473 Accounts receivable 23,410 24,890 Accrued expenses 11,718 13,829 Allowance for doubtful accounts (268) (336) Deferred revenues 3,388 2,183 Unbilled services 18,580 14,140 Short-term borrowings 2,000 3,000 Prepaid expenses and other Other current current assets 3,990 3,161 liabilities 2,152 762 Total current Total current assets 45,727 44,621 liabilities 24,652 25,247 Non-current assets: Fixed assets, net Long-term of depreciation 9,767 9,099 borrowings 40,396 41,922 Goodwill 32,579 32,537 Other liabilities 1,427 1,543 Other intangibles, net of amortization 459 715 Other non-current assets 7,454 8,739 Redeemable equity 8,900 8,900 Total non-current Total stockholders' assets 50,259 51,090 equity 20,611 18,099 Total assets $95,986 $95,711 Total liabilities and stockholders' equity $95,986 $95,711 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) US Market UK Market Tele- Social Research Research services Research Three months ended September 30, 2004: Revenues from external customers $6,023 $5,623 $3,213 $32,703 Operating income (loss) (640) 58 236 3,378 Interest and other non-operating expenses, net Income before provision for income taxes Three months ended September 30, 2003: Revenues from external customers $5,722 $5,433 $3,757 $29,144 Operating income (loss) (1,319) 245 481 3,439 Interest and other non-operating expenses, net Income before provision for income taxes Nine months ended September 30, 2004: Revenues from external customers $19,623 $16,681 $10,163 $95,897 Operating income (loss) (1,920) 348 926 10,104 Interest and other non-operating expenses, net Income before provision for income taxes Nine months ended September 30, 2003: Revenues from external customers $19,397 $14,530 $10,441 $87,139 Operating income (loss) (2,529) 621 1,070 9,296 Interest and other non-operating expenses, net Income before provision for income taxes OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) Total Segments Other Consolidated Three months ended September 30, 2004: Revenues from external customers $47,562 $1,332 $48,894 Operating income (loss) 3,032 23 3,055 Interest and other non-operating expenses, net 1,082 Income before provision for income taxes $1,973 Three months ended September 30, 2003: Revenues from external customers $44,056 $811 $44,867 Operating income (loss) 2,846 (100) 2,746 Interest and other non-operating expenses, net 1,242 Income before provision for income taxes $1,504 Nine months ended September 30, 2004: Revenues from external customers $142,364 $3,891 $146,255 Operating income (loss) 9,458 30 9,488 Interest and other non-operating expenses, net 6,154 Income before provision for income taxes $3,334 Nine months ended September 30, 2003: Revenues from external customers $131,507 $2,005 $133,512 Operating income (loss) 8,458 (423) 8,035 Interest and other non-operating expenses, net 3,553 Income before provision for income taxes $4,482 DATASOURCE: Opinion Research Corporation CONTACT: Douglas L. Cox, EVP & Chief Financial Officer of Opinion Research Corporation, +1-609-452-5274 Web site: http://www.opinionresearch.com/

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