NIC Announces First Quarter Financial Results; Revenue Grew 29% and EBITDA Improved on A Sequential Quarter-over-Quarter Basis

Apr 26, 2001, 01:00 ET from National Information Consortium

    OVERLAND PARK, Kan., April 26 /PRNewswire/ -- National Information
 Consortium (Nasdaq: EGOV) today announced financial results for the first
 quarter ended March 31, 2001.  Revenues increased 29% to $8.0 million, on
 gross billings of $22.5 million, with a net loss of $10.1 million, or $0.18
 per share.  As previously announced, to comply with recent accounting rule
 changes, the Company now reports revenues from its portal businesses on a net
 basis instead of gross basis as it had in previous quarters.  Under the prior
 accounting treatment, gross revenues would have been $22.5 million for the
 quarter ended March 31, 2001, a 19% increase over $18.9 million for the
 quarter ended March 31, 2000.  Gross profit, operating loss, net loss and net
 loss per share were unaffected by this change.
     "Our focus on execution allowed us to exceed the financial and operational
 goals we set for NIC in the first quarter," said Jim Dodd, President and CEO.
 "We're building eGovernment commerce sites and applications more quickly and
 cost effectively, and we continue to help our government partners deliver
 Internet-based services that keep setting new standards in the eGovernment
 space.  The strength of our core franchise is evidenced by our largest
 government partner, Virginia, renewing their contract with us, and also by
 sustained growth in new eGovernment application transaction revenue of almost
 60%.
     "Importantly," continued Dodd, "the eGovernment market is very robust and
 continues to be driven by the need to produce efficiencies by transferring
 many real world services to the virtual world.  We have an extremely solid new
 business pipeline, which is being driven by increased citizen and business
 demand for convenient eGovernment services at all levels of government."
 
     First Quarter Operating Highlights
     In the first quarter, NIC's long-term enterprise eGovernment installation
 base was enhanced by new and extended contracts on the state and local level.
 These include:
 
     * A contract to create and maintain the eGovernment portal for Kent
       County, Michigan.  This contract includes both monthly payments to NIC
       and a self-funding revenue stream, an increasingly common model for
       contracts with local governments.
 
     * The Commonwealth of Virginia, NIC's largest state partner in terms of
       transaction volume, signed a five-year renewal of its contract with NIC,
       exceeding the company's expectations for contract renewal length.
 
     * New York Department of State announced that NIC Conquest will develop an
       XML-based online filing system for its Uniform Commercial Code
       documents.  This is NIC's first contact with New York State, one of the
       three-largest UCC filing jurisdictions in the nation.
 
     "At the heart of our success is the commitment to being the leader in the
 eGovernment space.  With our strong business environment, focus on execution,
 and ability to attract and win new business, we believe we are on track to
 achieve our previously announced target of positive EBITDA and cash flow by
 the second quarter of 2002," commented Dodd.
 
     Financial Highlights
     For the quarter ended March 31, 2001, revenues were $8.0 million, a 29%
 increase over first quarter 2000.  On a sequential basis, total revenues
 increased 20% from $6.7 million in the fourth quarter of 2000, while cash
 operating expenses decreased 11% from $12.2 million.
     Portal revenues were $5.5 million, a 19% increase over first quarter 2000.
 This increase was due, in part, to revenues from the company's state contracts
 in Tennessee and Idaho, which began to generate substantive revenues in March,
 and to same state volume growth.  Same state revenues grew 12% over first
 quarter 2000.  On a sequential basis, portal revenues increased 25% from $4.4
 million in the fourth quarter of 2000.
     Software and services revenues were $2.6 million, a 60% increase over
 first quarter 2000.  The majority of this increase was from NIC Conquest and
 the company's IDT business, which was acquired in October 2000.  Revenues from
 NIC Conquest increased to $1.3 million, a 560% increase over first quarter
 2000, as a result of revenues from recently awarded contracts with the states
 of Minnesota, New York and Oklahoma.  On a sequential basis, software and
 services revenues increased 11% over revenues of $2.3 million in the fourth
 quarter of 2000.
     EBITDA (defined as earnings (losses) before interest, taxes, equity in net
 loss of affiliates, depreciation and amortization, stock compensation and one-
 time charges) for the three months ended March 31, 2001 was a loss of $5.0
 million, compared to a loss of $1.5 million for the three months in the prior
 year.  EBITDA in the prior quarter excludes a one-time $1.4 million charge
 relating to the company's application development contract with the Indiana
 Secretary of State.  On a sequential basis, the EBITDA loss in the first
 quarter decreased from the  $7.6 million loss reported in the fourth quarter
 of 2000.
     The net loss for the quarter ended March 31, 2001, was $10.1 million, or
 $0.18 per share, compared to a net loss of $4.7 million, or $0.09 per share,
 for the quarter ended March 31, 2000.  The net loss for the current quarter
 was due primarily to non-cash charges associated with depreciation and
 intangible asset amortization as well as to continued market expansion efforts
 in eProcurement, state and local governments, and our relationship with
 America Online.  Net loss in the prior year includes the $1.4 million charge
 as discussed above.  Excluding this charge, net loss for the prior year
 quarter would have been $3.9 million, or $0.07 per share.
 
     First Quarter Earnings Webcast Details
     * Conference date: Thursday, April 26
     * Conference time: 5:00 PM EDT
     * Call leader: Jim Dodd, President and Chief Executive Officer
     * Teleconference Name: First Quarter 2001 Earnings
     * Webcast Information be found at http://www.nicusa.com in the Investor
       Relations section
 
     A recorded playback of NIC's first quarter earnings announcement
 conference call will be available from April 26 at 7:15 PM ET through midnight
 on May 3.  To access the recorded playback, please call 800-633-8284 and use
 the reservation # 18580430.  The webcast playback will also be available until
 May 15 in the Investor Relations section of http://www.nicusa.com .
 
     About NIC
     NIC, "The eGovernment Company(TM)," delivers more Web-enabled government
 solutions than any other provider in the world.  The company is helping to
 transform the relationships between government and the communities it serves
 by providing convenient online government services that make life easier for
 businesses and citizens.  Through partnerships at all levels of government,
 NIC manages transactions for hundreds of state & local agencies that serve
 more than 44 million people in the United States and Canada.  For more
 information, visit NIC at http://www.nicusa.com .
 
     The statements in this release regarding continued implementation of NIC's
 business model and its development of new products and services are forward-
 looking statements. 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 government legislation; NIC's ability to develop
 new services; existing states and agencies adopting those new services;
 acceptance of eGovernment solutions by businesses and citizens; competition;
 and general economic conditions and the other important cautionary statements
 and risk factors described in NIC's Annual Report on Form 10-K filed on April
 2, 2001, with the Securities and Exchange Commission.
 
                           (financial tables follow)
 
                     NATIONAL INFORMATION CONSORTIUM, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                    (Thousands except for per share amounts)
 
                                                        Three months ended
                                                              March 31,
                                                        2001           2000
 
     MEMO: Gross billings                             $22,467        $18,914
     -----
     -----
     Revenues:
      Portal revenues                                 $ 5,455        $ 4,597
      Software and services revenues                    2,563          1,603
       Total revenues                                   8,018          6,200
 
     Cost of revenues:
      Cost of portal revenues                             350            341
      Cost of software and services revenues            1,773          2,181
       Total cost of revenues (exclusive of
        depreciation and amortization)                  2,123          2,522
 
     Gross profit                                       5,895          3,678
 
     Operating expenses:
      Service development and operations                2,812          1,580
      Selling, general, and administrative              8,049          4,992
      Stock compensation                                  386            517
      Depreciation and amortization                     8,386          4,586
       Total operating expenses                        19,633         11,675
 
     Operating loss                                   (13,738)        (7,997)
 
     Other income (expense):
      Interest expense                                     (6)           (11)
      Other income, net                                   470          1,202
      Equity in net loss of affiliates                   (820)          ---
 
       Total other income (expense)                      (356)         1,191
 
     Loss before income taxes and
      minority interest                               (14,094)        (6,806)
     Income tax expense (benefit)                      (3,938)        (2,008)
 
     Loss before minority interest                    (10,156)        (4,798)
     Minority interest                                    (22)           (93)
 
     Net loss                                       $ (10,134)       $(4,705)
 
     Net loss per share:
      Basic and diluted                                $(0.18)        $(0.09)
 
     Weighted average shares outstanding               56,041         53,260
 
     CONTACT:  Eric Bur of the National Information Consortium, 877-234-EGOV,
 or ebur@nicusa.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X19347855
 
 

SOURCE National Information Consortium
    OVERLAND PARK, Kan., April 26 /PRNewswire/ -- National Information
 Consortium (Nasdaq: EGOV) today announced financial results for the first
 quarter ended March 31, 2001.  Revenues increased 29% to $8.0 million, on
 gross billings of $22.5 million, with a net loss of $10.1 million, or $0.18
 per share.  As previously announced, to comply with recent accounting rule
 changes, the Company now reports revenues from its portal businesses on a net
 basis instead of gross basis as it had in previous quarters.  Under the prior
 accounting treatment, gross revenues would have been $22.5 million for the
 quarter ended March 31, 2001, a 19% increase over $18.9 million for the
 quarter ended March 31, 2000.  Gross profit, operating loss, net loss and net
 loss per share were unaffected by this change.
     "Our focus on execution allowed us to exceed the financial and operational
 goals we set for NIC in the first quarter," said Jim Dodd, President and CEO.
 "We're building eGovernment commerce sites and applications more quickly and
 cost effectively, and we continue to help our government partners deliver
 Internet-based services that keep setting new standards in the eGovernment
 space.  The strength of our core franchise is evidenced by our largest
 government partner, Virginia, renewing their contract with us, and also by
 sustained growth in new eGovernment application transaction revenue of almost
 60%.
     "Importantly," continued Dodd, "the eGovernment market is very robust and
 continues to be driven by the need to produce efficiencies by transferring
 many real world services to the virtual world.  We have an extremely solid new
 business pipeline, which is being driven by increased citizen and business
 demand for convenient eGovernment services at all levels of government."
 
     First Quarter Operating Highlights
     In the first quarter, NIC's long-term enterprise eGovernment installation
 base was enhanced by new and extended contracts on the state and local level.
 These include:
 
     * A contract to create and maintain the eGovernment portal for Kent
       County, Michigan.  This contract includes both monthly payments to NIC
       and a self-funding revenue stream, an increasingly common model for
       contracts with local governments.
 
     * The Commonwealth of Virginia, NIC's largest state partner in terms of
       transaction volume, signed a five-year renewal of its contract with NIC,
       exceeding the company's expectations for contract renewal length.
 
     * New York Department of State announced that NIC Conquest will develop an
       XML-based online filing system for its Uniform Commercial Code
       documents.  This is NIC's first contact with New York State, one of the
       three-largest UCC filing jurisdictions in the nation.
 
     "At the heart of our success is the commitment to being the leader in the
 eGovernment space.  With our strong business environment, focus on execution,
 and ability to attract and win new business, we believe we are on track to
 achieve our previously announced target of positive EBITDA and cash flow by
 the second quarter of 2002," commented Dodd.
 
     Financial Highlights
     For the quarter ended March 31, 2001, revenues were $8.0 million, a 29%
 increase over first quarter 2000.  On a sequential basis, total revenues
 increased 20% from $6.7 million in the fourth quarter of 2000, while cash
 operating expenses decreased 11% from $12.2 million.
     Portal revenues were $5.5 million, a 19% increase over first quarter 2000.
 This increase was due, in part, to revenues from the company's state contracts
 in Tennessee and Idaho, which began to generate substantive revenues in March,
 and to same state volume growth.  Same state revenues grew 12% over first
 quarter 2000.  On a sequential basis, portal revenues increased 25% from $4.4
 million in the fourth quarter of 2000.
     Software and services revenues were $2.6 million, a 60% increase over
 first quarter 2000.  The majority of this increase was from NIC Conquest and
 the company's IDT business, which was acquired in October 2000.  Revenues from
 NIC Conquest increased to $1.3 million, a 560% increase over first quarter
 2000, as a result of revenues from recently awarded contracts with the states
 of Minnesota, New York and Oklahoma.  On a sequential basis, software and
 services revenues increased 11% over revenues of $2.3 million in the fourth
 quarter of 2000.
     EBITDA (defined as earnings (losses) before interest, taxes, equity in net
 loss of affiliates, depreciation and amortization, stock compensation and one-
 time charges) for the three months ended March 31, 2001 was a loss of $5.0
 million, compared to a loss of $1.5 million for the three months in the prior
 year.  EBITDA in the prior quarter excludes a one-time $1.4 million charge
 relating to the company's application development contract with the Indiana
 Secretary of State.  On a sequential basis, the EBITDA loss in the first
 quarter decreased from the  $7.6 million loss reported in the fourth quarter
 of 2000.
     The net loss for the quarter ended March 31, 2001, was $10.1 million, or
 $0.18 per share, compared to a net loss of $4.7 million, or $0.09 per share,
 for the quarter ended March 31, 2000.  The net loss for the current quarter
 was due primarily to non-cash charges associated with depreciation and
 intangible asset amortization as well as to continued market expansion efforts
 in eProcurement, state and local governments, and our relationship with
 America Online.  Net loss in the prior year includes the $1.4 million charge
 as discussed above.  Excluding this charge, net loss for the prior year
 quarter would have been $3.9 million, or $0.07 per share.
 
     First Quarter Earnings Webcast Details
     * Conference date: Thursday, April 26
     * Conference time: 5:00 PM EDT
     * Call leader: Jim Dodd, President and Chief Executive Officer
     * Teleconference Name: First Quarter 2001 Earnings
     * Webcast Information be found at http://www.nicusa.com in the Investor
       Relations section
 
     A recorded playback of NIC's first quarter earnings announcement
 conference call will be available from April 26 at 7:15 PM ET through midnight
 on May 3.  To access the recorded playback, please call 800-633-8284 and use
 the reservation # 18580430.  The webcast playback will also be available until
 May 15 in the Investor Relations section of http://www.nicusa.com .
 
     About NIC
     NIC, "The eGovernment Company(TM)," delivers more Web-enabled government
 solutions than any other provider in the world.  The company is helping to
 transform the relationships between government and the communities it serves
 by providing convenient online government services that make life easier for
 businesses and citizens.  Through partnerships at all levels of government,
 NIC manages transactions for hundreds of state & local agencies that serve
 more than 44 million people in the United States and Canada.  For more
 information, visit NIC at http://www.nicusa.com .
 
     The statements in this release regarding continued implementation of NIC's
 business model and its development of new products and services are forward-
 looking statements. 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 government legislation; NIC's ability to develop
 new services; existing states and agencies adopting those new services;
 acceptance of eGovernment solutions by businesses and citizens; competition;
 and general economic conditions and the other important cautionary statements
 and risk factors described in NIC's Annual Report on Form 10-K filed on April
 2, 2001, with the Securities and Exchange Commission.
 
                           (financial tables follow)
 
                     NATIONAL INFORMATION CONSORTIUM, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                    (Thousands except for per share amounts)
 
                                                        Three months ended
                                                              March 31,
                                                        2001           2000
 
     MEMO: Gross billings                             $22,467        $18,914
     -----
     -----
     Revenues:
      Portal revenues                                 $ 5,455        $ 4,597
      Software and services revenues                    2,563          1,603
       Total revenues                                   8,018          6,200
 
     Cost of revenues:
      Cost of portal revenues                             350            341
      Cost of software and services revenues            1,773          2,181
       Total cost of revenues (exclusive of
        depreciation and amortization)                  2,123          2,522
 
     Gross profit                                       5,895          3,678
 
     Operating expenses:
      Service development and operations                2,812          1,580
      Selling, general, and administrative              8,049          4,992
      Stock compensation                                  386            517
      Depreciation and amortization                     8,386          4,586
       Total operating expenses                        19,633         11,675
 
     Operating loss                                   (13,738)        (7,997)
 
     Other income (expense):
      Interest expense                                     (6)           (11)
      Other income, net                                   470          1,202
      Equity in net loss of affiliates                   (820)          ---
 
       Total other income (expense)                      (356)         1,191
 
     Loss before income taxes and
      minority interest                               (14,094)        (6,806)
     Income tax expense (benefit)                      (3,938)        (2,008)
 
     Loss before minority interest                    (10,156)        (4,798)
     Minority interest                                    (22)           (93)
 
     Net loss                                       $ (10,134)       $(4,705)
 
     Net loss per share:
      Basic and diluted                                $(0.18)        $(0.09)
 
     Weighted average shares outstanding               56,041         53,260
 
     CONTACT:  Eric Bur of the National Information Consortium, 877-234-EGOV,
 or ebur@nicusa.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X19347855
 
 SOURCE  National Information Consortium