ORCI Opinion Research

Opinion Research Reports Second Quarter Results Including Revenue Increase of 9% PRINCETON, N.J., July 28 /PRNewswire-FirstCall/ -- Opinion Research Corporation (NASDAQ:ORCI), today announced financial results for the second quarter ended June 30, 2004. Summarizing the quarter's results, Chairman and CEO John F. Short said, "We are pleased with the revenue performance, in particular the renewal of growth in our commercial market research business which is up 15% and 14% in the second quarter and first six months respectively as compared to the comparable period last year." Revenues Revenues for the second quarter were $49.4 million versus $45.5 million in the prior year's second quarter, an increase of 9 percent. Social research revenues were $32.3 million versus $30.2 million in last year's second quarter. Commercial market research revenues totaled $13.8 million versus $12.0 million in the prior year's second quarter. Teleservices revenues were $3.3 million versus $3.3 million in last year's second quarter. Income Operating income for the second quarter was $3.0 million, versus $2.8 million in the prior year's second quarter, an increase of 6 percent. After a $2.5 million charge for debt fees, principally the non-cash write-off of unamortized fees, in connection with the recent previously announced debt refinancing, the company reported a net loss in the second quarter of $.2 million versus net income of $.9 million in last year's second quarter. Net loss per diluted share was $0.04 versus net income per diluted share of $0.15 in the prior year's second quarter. The $2.5 million charge reduced net income by $1.6 million and diluted earnings per share by $0.26. Business Outlook Mr. Short commented, "We believe that the outlook for our US commercial businesses is improving, based on increases in 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 and our non-US commercial businesses to continue to meet our expectations." The company has increased its revenue guidance for 2004 to a range of $187 million to $190 million and reconfirms its earlier net income and earnings per share guidance for 2004 of $3.0 to $3.5 million and $0.46 to $0.54 per diluted share. These include the refinancing-related charge referred to above. 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. First Half Results For the first half of 2004, revenues were $97.4 million compared to $88.6 million in the first half of 2003, an increase of 10%. First half net income was $.7 million, or $0.11 per diluted share, compared to $1.7 million, or $0.27 per diluted share, last year. First half 2004 net income includes the refinancing-related charge, which reduced net income by $1.6 million and diluted earnings per share by $0.26. Conference Call The company has scheduled an investor conference call for 10:00 a.m. (EDT) on Thursday, July 29. The dial-in number for the live conference call will be 800-730-8227 (706-634-7466 outside the US and Canada). There will be a live web cast of the conference call over the investor relations page of the company's Web site at http://www.opinionresearch.com/ as well as at http://www.fulldisclosure.com/. For those who cannot listen to the live broadcast, an audio replay of the call will be available on the above web sites for 30 days. A telephone replay of the call will also be available from 1:00 p.m. on July 29 until 11:59 p.m. on August 5. To listen to the telephone replay, dial 800-642-1687 (706-645-9291 outside the US and Canada) and enter conference ID # 1397526. 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 Six Months Ended June 30, Ended June 30, 2004 2003 %Incr 2004 2003 %Incr Revenues $49,400 $45,481 9 $97,361 $88,645 10 Cost of revenues (exclusive of depreciation) 35,045 31,946 68,763 61,752 Gross profit 14,355 13,535 6 28,598 26,893 6 Selling, general and administrative expenses 10,370 9,676 20,268 19,650 Depreciation and amortization 955 1,008 1,897 1,954 Operating income 3,030 2,851 6 6,433 5,289 22 Interest expense 3,766 1,143 5,373 2,294 Other non-operating (income) expenses (293) (5) (301) 17 Income (loss) before provision for income taxes (443) 1,713 1,361 2,978 Provision (benefit) for income taxes (206) 793 660 1,325 Net income (loss) $(237) $920 $701 $1,653 Net income (loss) per common share: Basic $(0.04) $0.15 $0.11 $0.27 Diluted $(0.04) $0.15 0.11 0.27 Weighted average shares outstanding: Basic 6,241,703 6,070,835 6,195,315 6,056,900 Diluted 6,241,703 6,144,002 6,410,437 6,106,146 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Liabilities and stockholders' Assets 30-Jun-04 31-Dec-03 equity 30-Jun-04 31-Dec-03 Current assets: Current liabilities: Cash and equivalents $986 $2,766 Accounts payable $6,587 $5,473 Accounts receivable 25,223 24,890 Accrued expenses 10,187 13,829 Allowance for doubtful accounts (273) (336) Deferred revenues 2,783 2,183 Unbilled services 16,517 14,140 Short-term borrowings 2,000 3,000 Prepaid expenses and other Other current current assets 4,578 3,161 liabilities 1,151 762 Total current Total current assets 47,031 44,621 liabilities 22,708 25,247 Non-current assets: Fixed assets, net Long-term of depreciation 9,068 9,099 borrowings 44,266 41,922 Goodwill 32,592 32,537 Other liabilities 1,329 1,543 Other intangibles, net of amortization 515 715 Other non-current assets 7,542 8,739 Redeemable equity 8,900 8,900 Total non-current Total stockholders' assets 49,717 51,090 equity 19,545 18,099 Total assets $96,748 $95,711 Total liabilities and stockholders' equity $96,748 $95,711 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) US Market UK Market Research Research Teleservices Three months ended June 30, 2004: Revenues from external customers $7,285 $5,138 $3,342 Operating income (loss) (764) 77 300 Three months ended June 30, 2003: Revenues from external customers $7,091 $4,485 $3,295 Operating income (loss) (232) 190 332 Six months ended June 30, 2004: Revenues from external customers $13,600 $11,058 $6,950 Operating income (loss) (1,280) 290 690 Six months ended June 30, 2003: Revenues from external customers $13,675 $9,097 $6,684 Operating income (loss) (1,210) 376 589 OPINION RESEARCH CORPORATION AND SUBSIDIARIES Segment Information (in thousands) Social Total Research Segments Other Consolidated Three months ended June 30, 2004: Revenues from external customers $32,261 $48,026 $1,374 $49,400 Operating income (loss) 3,387 3,000 30 3,030 Interest and other non-operating expenses, net 3,473 Income (loss) before provision for income taxes $(443) Three months ended June 30, 2003: Revenues from external customers $30,190 $45,061 $420 $45,481 Operating income (loss) 2,847 3,137 (286) 2,851 Interest and other non-operating expenses, net 1,138 Income before provision for income taxes $1,713 Six months ended June 30, 2004: Revenues from external customers $63,194 $94,802 $2,559 $97,361 Operating income (loss) 6,726 6,426 7 6,433 Interest and other non-operating expenses, net 5,072 Income before provision for income taxes $1,361 Six months ended June 30, 2003: Revenues from external customers $57,995 $87,451 $1,194 $88,645 Operating income (loss) 5,857 5,612 (323) 5,289 Interest and other non-operating expenses, net 2,311 Income before provision for income taxes $2,978 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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