National Information Consortium Announces Third Quarter Financial Results; Reports Third Quarter Revenue Growth of 60 Percent.OVERLAND PARK Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , Kan.--(BUSINESS WIRE)--Oct. 21, 1999-- National Information Consortium, Inc. ("NIC (1) (Network Interface Card) See network adapter. See also InterNIC. (2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA. ") (Nasdaq: EGOV), a leading provider of Internet-based electronic government services, today announced results for the three months ended September 30, 1999. Revenues for the three months ended September 30, 1999 were $15.7 million, a 60 percent increase over revenues of $9.8 million for the three months ended September 30, 1998. Third quarter 1999 revenues increased 18 percent over revenues of $13.3 million for the second quart, 1998. "We're pleased with our record growth for the quarter," said Jeffrey S. Fraser, chairman and chief executive officer, NIC. "Our results reflect our successful efforts in growing the usage of our e-government solutions across the nine states and one city/county where we do business. As evidenced by our acquisition of eFed during the quarter, our focus continues to be on rolling out new applications and services to our ten existing government partners and selling our unique solution to additional government entities." "Our outlook remains positive," said Jim Dodd, president of NIC. "We have multiple states in our pipeline, growing usage of NIC services in our existing markets and high expectations for eFed, our new Internet-based procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. solution." Highlights from the Quarter: - NIC completed an initial public offering of stock, providing the Company with over $110 million, which will allow it to expand its e-government solution to new governments and municipalities, as well as develop new products and services for its existing government partners. - NIC announced that former California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Governor Pete Wilson For others named Pete Wilson, see . Peter Barton Wilson (born August 23, 1933) is an American Republican politician from California. Wilson served as the thirty-sixth Governor of California (1991–1999), the culmination of more than three decades in the public arena that was elected to the Company's board of directors. Governor Wilson joins former state of Washington Governor Daniel J. Evans Daniel Jackson Evans (born October 16 1925) served three terms as governor of the state of Washington from 1965 to 1977, and represented the state in the United States Senate from 1983 to 1989. as the second state governor and former U.S. Senator to join the NIC board. Mr. Wilson's appointment increased NIC's board to seven members. - On September 15th, NIC completed its acquisition of eFed, a market leader in Internet-based procurement solutions for the government. eFed designs, develops and manages online procurement software and services for federal and state markets. Already contracting with nine Federal agencies, eFed gives NIC new and proven value-added applications for its existing government partners, as well as potential new entry points into other states and other sectors of the Federal market. For the nine months ended September 30, 1999 revenues increased 52 percent to $40.5 million from $26.5 million pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues for the nine months ended September 30, 1998. The net loss for the nine months ended September 30, 1999 was $7.2 million, or $0.16 per share, as compared to a pro forma net loss of $5.5 million, or $0.16 per share, for the nine months ended September 30, 1998. For the nine months ended September 30, 1999, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , excluding non-cash stock based compensation and the charge discussed below, was $1.4 million, a 40 percent increase over the pro forma EBITDA amount of $1.0 million for the nine months ended September 30, 1998. The most recent period includes a previously disclosed non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $900,000, which was recorded as part of service development and operations expenses for anticipated costs in excess of revenues on obligations under NIC's application development contracts (as more fully discussed in the Company's registration statement dated July 15, 1999). About NIC National Information Consortium provides federal, state and local governments with end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. e-government solutions, including a broad range of software, services and applications. NIC helps governments use the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to reduce costs and provide a higher level of service by building Web sites and applications that allow businesses and citizens to access government information and to complete government-based transactions online. Some examples of applications include: professional license renewals, Internet tax filings, automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. UCC An abbreviation for the Uniform Commercial Code. file searches and automobile registration renewals. NIC contracts with state and municipal governments to design, build and operate Internet-based portals on their behalf. As of July 1999, NIC had signed contracts with Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Indianapolis and Marion County Marion County is the name of seventeen counties in the United States of America, mostly named for General Francis Marion:
Special Note: The statements in this release regarding continued implementation of NIC's business model, its pipeline of potential new state partners and its development of new products and services are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the success of the Company in signing contracts with new states and government agencies, including continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. government legislation; NIC's ability to develop new services; existing states and agencies adopting those new services; acceptance of e-government solutions by businesses and citizens; competition; and general economic conditions and the other important cautionary statements and risk factors described in NIC's Registration Statement declared effective July 15, 1999 with the Securities and Exchange Commission.
NATIONAL INFORMATION CONSORTIUM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
000's
Three-months ended Nine-months ended
Sept. 30, Sept. 30,
------------------------------------------------
1999 1998 1999 1998 1998
Pro forma
------------------------------------------------
Revenues $ 15,691 $ 9,773 $ 40,457 $ 18,628 $ 26,537
Cost of revenues 11,672 7,347 30,495 13,500 19,683
-------- -------- -------- -------- --------
Gross profit 4,019 2,426 9,962 5,128 6,854
-------- -------- -------- -------- --------
Operating expenses:
Service development
and operations 1,362 806 4,009 1,617 2,059
Selling, general
and administrative 2,226 --- -------- -------- --------
Total operating
expenses 6,397 3,987 18,582 8,755 12,013
Total other income
(expense) 1,072 (7) 1,023 (11) (14)
-------- -------- -------- -------- --------
Loss before
income taxes (1,306) (1,568) (7,597) (3,638) (5,173)
Income tax expense
(benefit) 136 370 (353) 370 370
-------- -------- -------- -------- --------
Basic and diluted $ (0.03) $ (0.05) $ (0.16) $ (0.11) $
(0.16)
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Weighted average shares
outstanding 50,968 42,066 45,278 35,636 35,636
================================================
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.
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