Current Report



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): February 5, 2015

NIC INC.
(Exact name of registrant as specified in its charter)

Delaware

000-26621

52-2077581

(State or other jurisdiction

of incorporation or organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

25501 West Valley Parkway, Suite 300
Olathe, Kansas 66061
(Address of principal executive offices, including zip code)

(877) 234-3468
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


ITEM 2.02          RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 5, 2015, NIC Inc. (the “Company”) issued a press release announcing its fourth quarter and fiscal 2014 financial results and its fiscal 2015 financial outlook. A copy of the press release is furnished with this report on Form 8-K as Exhibit 99, and is incorporated by reference herein.

ITEM 7.01          REGULATION FD DISCLOSURE

The Company will host a conference call, which will also be available by webcast, to discuss its fourth quarter and fiscal 2014 financial results and its fiscal 2015 financial outlook at 4:30 p.m. EST on February 5, 2015. The call may also include discussion of company developments, and forward-looking and other material information about business and financial matters.

The information in this Form 8-K and Exhibit 99 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth in such filing.

ITEM 9.01          FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99 - Press release issued by NIC Inc. dated February 5, 2015, announcing its fourth quarter and fiscal 2014 financial results and its fiscal 2015 financial outlook, is being furnished as part of this report.

- 2 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NIC Inc.

 

Date: February 5, 2015

/s/ Stephen M. Kovzan

Stephen M. Kovzan

Chief Financial Officer

- 3 -

Exhibit 99

NIC Earns 12 Cents Per Share in Fourth Quarter 2014; Exceeds Annual Revenue and Earnings Guidance

2015 guidance reflects strong same state revenue growth and investments in several areas of the Company

OLATHE, Kan.--(BUSINESS WIRE)--February 5, 2015--NIC Inc. (NASDAQ: EGOV), the dominant provider of eGovernment services, today announced net income of $8.3 million and earnings per share of 12 cents on total revenues of $66.0 million for the three months ended December 31, 2014. In the fourth quarter of 2013, the Company reported net income of $6.2 million and earnings per share of 9 cents on total revenues of $60.8 million.

Results in the prior year quarter included $2.5 million in legal defense and other third party costs, net of insurance reimbursement, included in selling & administrative expenses related to the previously disclosed SEC matter, which was successfully concluded in December 2013. These costs lowered earnings per share in the prior year quarter by approximately 2 cents.

The Company’s effective tax rate in the current quarter was 36 percent, down from 44 percent in the prior year quarter. The lower effective tax rate in the current quarter was driven primarily by a favorable benefit related to the full-year effect of the federal research & development tax credit for the 2014 tax year. Legislation extending the tax credit through December 31, 2014 was signed into law during the fourth quarter of 2014. The higher effective tax rate in the prior quarter was driven primarily by changes in state taxes, including true-ups upon the filing of state returns, which lowered earnings per share by approximately 1 cent.


The Company reclassified certain income statement employee benefit related expenses for 2013 to conform to the new 2014 presentation. The reclassification resulted in a reduction of selling & administrative expenses of $1.0 million and $4.0 million for the three and 12 month periods ended December 31, 2013, respectively, as well as a corresponding increase in cost of portal revenues ($1.0 million and $3.9 million for the three and 12 month periods ended December 31, 2013, respectively) and cost of software & services revenues ($0.1 million for the 12 month period ended December 31, 2013). The reclassification had no effect on total operating expenses, operating income, net income, earnings per share, or cash flows.

Fourth Quarter 2014 Performance

Fourth quarter 2014 portal revenues were $62.1 million, an 8 percent increase over the fourth quarter of 2013. On a same state basis, portal revenues were $59.1 million, up 8 percent from the prior year quarter. Same state Interactive Government Services (IGS) revenues increased 11 percent during the current quarter, and same state transaction-based revenues from Driver History Record (DHR) services rose 7 percent over the fourth quarter of 2013 due to price increases in two states and continued transaction volume growth across several states. Same state software development revenues decreased 15 percent, as the Company cycled against a stronger quarter of project-based, time and materials revenues in the prior year quarter.

Current quarter revenues from the Company’s newer portals in Pennsylvania and Connecticut totaled $3.0 million. Revenues from the Pennsylvania portal in the prior year quarter were $1.5 million, and the Connecticut portal began generating revenues in the second quarter of 2014. The legacy Arizona state portal contract expired on March 26, 2014, while revenues from this contract in the prior year quarter were $0.9 million.

Software & services revenues were $3.9 million, up 12 percent from the fourth quarter of 2013, driven by an increase in revenues from payment processing services and the federal Pre-employment Screening Program.


Operational Highlights

Recently, three NIC subsidiaries received contract extensions. Texas NICUSA, LLC received a one-year contract extension from the State of Texas, extending the contract through August 2017, and the contract between Montana Interactive, LLC and the State of Montana was renewed for an additional two years, taking the agreement through December 2017. In addition, the State of Idaho extended its contract with Idaho Information Consortium, LLC for two years, taking the agreement through June 2017.

“Contract renewals represent a vote of confidence in our model, the innovation we deliver, and the service our teams provide,” said Harry Herington, NIC Chief Executive Officer and Chairman of the Board. “I appreciate the confidence Texas, Montana, and Idaho continue to place in us, and we remain committed to delivering the very best in eGovernment services.”

Full-Year 2014 Performance

Fiscal year 2014 total revenues rose 9 percent to $272.1 million, and portal revenues grew 9 percent to $255.7 million, exceeding the high end of the Company’s 2014 revenue guidance. Revenue growth in 2014 was driven by DHR price and volume increases and the growth of various IGS services across several states. On a same state basis, portal revenues were 8 percent higher than in 2013, with same state IGS transactional revenues up 9 percent for the year, and same state DHR revenues growing 7 percent. Same state time & materials revenues relating to portal software development decreased 4 percent for the year.

NIC’s portal gross profit percentage was 39 percent in 2014, up from 37 percent in 2013. Results in the prior year include a one-time, non-cash, pre-tax charge of $5.1 million (approximately 5 cents per share on an after-tax basis) included in cost of portal revenues to write off outstanding accounts receivable related to a new portal contract in 2013.

Software & services revenues were $16.4 million, up 16 percent from 2013, driven by an increase in revenues from the Federal Pre-employment Screening Program and various other businesses including payment processing and a construction lien service in North Carolina.

Selling & administrative expenses as a percentage of total revenues were 14 percent in 2014, down from 15 percent in 2013. Selling & administrative expenses in 2013 include $4.0 million of costs (approximately 4 cents per share on an after-tax basis), net of insurance reimbursement, related to the previously disclosed SEC matter.


Operating income increased 20 percent to $63.0 million for the year, and NIC’s operating income margin was 23 percent in the current year, up from 21 percent in the prior year.

NIC earned 59 cents per share in 2014, up from 49 cents in 2013, exceeding the high end of the Company’s 2014 earnings guidance.

On January 2, 2014 and November 20, 2014, NIC paid special cash dividends to stockholders of $0.35 per share and $0.50 per share, respectively. NIC used a total of $56 million of its cash reserves to pay the special dividends. Of the dividends paid in 2014, 32.59 percent was return of capital and 67.41 percent was an ordinary qualified dividend. Stockholders are encouraged to consult with their tax specialists regarding the circumstances of their particular tax situations.

“In 2014, our financial results reflect two hallmarks of our business, consistency and predictability,” said Steve Kovzan, NIC’s Chief Financial Officer. “We continued to produce solid financial results rooted in our recurring revenue streams, steady organic growth, and strong cash flow, of which we were able to return a significant portion to stockholders in the form of two special cash dividends.”

Full-Year 2015 Outlook

For full-year 2015, NIC currently expects total revenues of $284.0-296.0 million, with portal revenues ranging from $268.0-279.0 million and software & services revenues ranging from $16.0-17.0 million. The Company also currently expects earnings per share to range from 57-63 cents.

Portal gross profit margins for the year are currently expected to be in the upper-30 percent range, while software & services gross profit margins are currently expected to be in the upper-60 percent range.

Selling & administrative expenses are currently expected to approximate 14 percent of total revenues. Depreciation & amortization expense as a percentage of total revenues is currently expected to approximate 3 percent in 2015, with capital expenditures currently expected to range from $6.0-7.0 million for the year.


“Our financial guidance reflects strong same state revenue growth in line with historical averages, coupled with incremental investments to grow and safeguard our business, including federal business development, cyber-security, and the Louisiana portal pilot,” said Steve Kovzan, NIC’s Chief Financial Officer. “NIC has always made major investments with an eye toward the future. Our long-term focus has been very beneficial to our partners, investors, and employees over the years.”

Projections do not include revenues or costs from any unannounced contracts.

Fourth Quarter Earnings Call and Webcast Details

On the call, the Company will discuss its 2014 fourth quarter and full-year financial results, its guidance for 2015, and answer questions from the investment community. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters.

Dial-In Information

Thursday, February 5, 2015
4:30 p.m. (EST)
Conference ID: 5760131

Call bridge: 888-395-3227 (U.S. callers) or 719-325-2435 (international callers)

Call leaders:   Harry Herington, Chief Executive Officer and Chairman of the Board
Steve Kovzan, Chief Financial Officer
Robert Knapp, Chief Operating Officer

Webcast Information

To sign in and listen: The Webcast system is available at http://www.egov.com/investors

A replay of NIC’s fourth quarter earnings call will be available until 11 p.m. (EDT) on July 2, 2015, by visiting http://www.egov.com/investors .

About NIC

Founded in 1992, NIC (NASDAQ: EGOV) is the nation's leading provider of official government websites, online services, and secure payment processing solutions. The Company's innovative eGovernment services help make government more accessible to everyone through technology. The family of NIC companies provides eGovernment solutions for more than 3,500 federal, state, and local agencies in the United States. Forbes has named NIC as one of the “100 Best Small Companies in America” six times, most recently ranked at No. 36 (2014), and the Company has been included four times on the Barron’s 400 Index. Additional information is available at http://www.egov.com .


Cautionary Statement Regarding Forward-Looking Information

Any statements contained in this release that do not relate to historical or current facts constitute forward-looking statements. These statements include statements regarding the Company’s potential financial performance for the 2015 fiscal year, statements regarding the planned implementation of new portal contracts and projects under existing portal contracts, and statements regarding continued implementation of NIC’s business model and its development of new products and services. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. 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, NIC’s ability to successfully integrate into its operations recently awarded eGovernment contracts; NIC's ability to implement its new portal contracts and new projects in a timely and cost-effective manner; NIC’s ability to successfully increase the adoption and use of eGovernment services; the possibility of reductions in fees or revenues as a result of budget deficits, government shutdowns or changes in government policy; the success of the Company in renewing existing contracts and in signing contracts with new states and federal government agencies; continued favorable government legislation; NIC’s ability to develop new services; existing states and agencies adopting those new services; acceptance of eGovernment services by businesses and citizens; competition; the possibility of security breaches or disruptions through cyber attacks or other events and any resulting liability; and general economic conditions and the other important cautionary statements and risk factors described in NIC's 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2014. Any forward-looking statements made in this release speak only as of the date of this release. NIC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.


 
NIC INC.
FINANCIAL SUMMARY
(UNAUDITED)
Thousands except per share amounts and percentages
               
Three months ended Twelve months ended
December 31, December 31,
2014 2013 2014 2013
Revenues:
Portal revenues $ 62,149 $ 57,326 $ 255,744 $ 235,183
Software & services revenues 3,869 3,461 16,353 14,096
Total revenues 66,018 60,787 272,097 249,279
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization (1) 39,985 36,616 156,185 147,007
Cost of software & services revenues, exclusive of depreciation &
amortization (1) 1,259 1,191 4,784 4,498
Selling & administrative (1) 9,491 9,873 38,937 36,882
Depreciation & amortization 2,358 2,112 9,177 8,333
Total operating expenses 53,093 49,792 209,083 196,720
Operating income before income taxes 12,925 10,995 63,014 52,559
Income tax provision 4,634 4,814 23,956 20,521
Net income $ 8,291 $ 6,181 $ 39,058 $ 32,038
 
Basic net income per share $ 0.12 $ 0.09 $ 0.59 $ 0.49
Diluted net income per share $ 0.12 $ 0.09 $ 0.59 $ 0.49
 
Weighted average shares outstanding:
Basic 65,302 64,992 65,224 64,889
Diluted 65,363 65,061 65,278 64,954
 
Key Financial Metrics:
Revenue growth - outsourced portals 8% 7% 9% 19%
Same state revenue growth - outsourced portals 8% 4% 8% 14%
Recurring portal revenue as a % of total portal revenues 96% 94% 95% 94%
Gross profit % - outsourced portals (1) 36% 36% 39% 37%
Revenue growth - software & services 12% 25% 16% 20%
Gross profit % - software & services (1) 67% 66% 71% 68%
Selling & administrative expenses as a % of total revenues (1) 14% 16% 14% 15%
Operating income as a % of total revenue 20% 18% 23% 21%
 
Portal Revenue Analysis:
IGS transaction-based (formerly, Non-DMV) $ 34,975 $ 31,526 $ 139,716 $ 127,898
DHR transaction-based (formerly, DMV) 22,565 19,842 95,753 83,671
Portal software development 2,789 3,348 12,205 13,309
Portal management 1,820 2,610 8,070 10,305
Total portal revenues $ 62,149 $ 57,326 $ 255,744 $ 235,183

(1)

 

The Company reclassified certain income statement employee benefit related expenses for 2013 to conform to the new 2014 presentation. The reclassification resulted in a reduction of selling & administrative expenses of $1.0 million and $4.0 million for the three and twelve month periods ended December 31, 2013, respectively, and a corresponding increase in cost of portal revenues ($1.0 million and $3.9 million for the three and twelve month periods ended December 31, 2013, respectively) and cost of software & services revenues ($0.1 million for the twelve month period ended December 31, 2013). In addition, the reclassification resulted in a reduction of selling & administrative expenses as a % of total revenues of 2% and 1% for the three and twelve month periods ended December 31, 2013, respectively, and a corresponding decrease in portal gross profit % (2% for each of the three and twelve month periods ended December 31, 2013) and software & services gross profit % (1% for each of the three and twelve month periods ended December 31, 2013). The reclassification had no effect on total operating expenses, operating income, net income, earnings per share or cash flows.


 
NIC INC.
FINANCIAL SUMMARY
(UNAUDITED)
Thousands except per share amounts and percentages
                   
Three months ended Year Ended
March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 December 31, 2014
Revenues:
Portal revenues $ 61,482 $ 66,809 $ 65,304 $ 62,149 $ 255,744
Software & services revenues 3,915 4,346 4,223 3,869 16,353
Total revenues 65,397 71,155 69,527 66,018 272,097
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization 37,560 39,549 39,091 39,985 156,185

Cost of software & services revenues, exclusive of
depreciation & amortization

993 1,245 1,287 1,259 4,784
Selling & administrative 9,208 9,841 10,397 9,491 38,937
Depreciation & amortization 2,250 2,277 2,292 2,358 9,177
Total operating expenses 50,011 52,912 53,067 53,093 209,083
Operating income before income taxes 15,386 18,243 16,460 12,925 63,014
Income tax provision 6,010 7,213 6,099 4,634 23,956
Net income $ 9,376 $ 11,030 $ 10,361 $ 8,291 $ 39,058
 
Basic net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59
Diluted net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59
 
Weighted average shares outstanding:
Basic 65,057 65,245 65,288 65,302 65,224
Diluted 65,057 65,245 65,288 65,363 65,278
 
Key Financial Metrics:
Revenue growth - outsourced portals 6% 8% 13% 8% 9%
Same state revenue growth - outsourced portals 7% 8% 9% 8% 8%
Recurring portal revenue as a % of total portal revenues 95% 95% 95% 96% 95%
Gross profit % - outsourced portals 39% 41% 40% 36% 39%
Revenue growth - software & services 23% 13% 17% 12% 16%
Gross profit % - software & services 75% 71% 70% 67% 71%
Selling & administrative expenses as a % of total revenues 14% 14% 15% 14% 14%
Operating income as a % of total revenue 24% 26% 24% 20% 23%
 
Portal Revenue Analysis:
IGS transaction-based (formerly, Non-DMV) $ 32,369 $ 36,684 $ 35,688 $ 34,975 $ 139,716
DHR transaction-based (formerly, DMV) 23,476 25,017 24,695 22,565 95,753
Portal software development 3,027 3,288 3,101 2,789 12,205
Portal management 2,610 1,820 1,820 1,820 8,070
Total portal revenues $ 61,482 $ 66,809 $ 65,304 $ 62,149 $ 255,744
 

                   
NIC INC.
FINANCIAL SUMMARY
(UNAUDITED)
Thousands except per share amounts and percentages
 
Three months ended Year Ended
March 31, 2013 June 30, 2013 September 30, 2013 December 31, 2013 December 31, 2013
Revenues:
Portal revenues $ 58,042 $ 62,094 $ 57,721 $ 57,326 $ 235,183
Software & services revenues 3,182 3,844 3,609 3,461 14,096
Total revenues 61,224 65,938 61,330 60,787 249,279
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization 33,812 35,938 40,640 36,616 147,007

Cost of software & services revenues, exclusive of
depreciation & amortization

1,143 1,228 936 1,191 4,498
Selling & administrative 8,537 8,982 9,490 9,873 36,882
Depreciation & amortization 2,027 2,049 2,145 2,112 8,333
Total operating expenses 45,519 48,197 53,211 49,792 196,720
Operating income before income taxes 15,705 17,741 8,119 10,995 52,559
Income tax provision 5,748 6,933 3,026 4,814 20,521
Net income $ 9,957 $ 10,808 $ 5,093 $ 6,181 $ 32,038
 
Basic net income per share $ 0.15 $ 0.16 $ 0.08 $ 0.09 $ 0.49
Diluted net income per share $ 0.15 $ 0.16 $ 0.08 $ 0.09 $ 0.49
 
Weighted average shares outstanding:
Basic 64,710 64,890 64,961 64,992 64,889
Diluted 64,710 64,890 64,969 65,061 64,954
 
Key Financial Metrics:
Revenue growth - outsourced portals 27% 27% 15% 7% 19%
Same state revenue growth - outsourced portals 16% 19% 15% 4% 14%
Recurring portal revenue as a % of total portal revenues 96% 94% 93% 94% 94%
Gross profit % - outsourced portals 42% 42% 30% 36% 37%
Revenue growth - software & services 5% 31% 20% 25% 20%
Gross profit % - software & services 64% 68% 74% 66% 68%
Selling & administrative expenses as a % of total revenues 14% 14% 15% 16% 15%
Operating income as a % of total revenue 26% 27% 13% 18% 21%
 
Portal Revenue Analysis:
IGS transaction-based (formerly, Non-DMV) $ 30,170 $ 34,005 $ 32,197 $ 31,526 $ 127,898
DHR transaction-based (formerly, DMV) 22,762 22,030 19,037 19,842 83,671
Portal software development 2,545 3,494 3,922 3,348 13,309
Portal management 2,565 2,565 2,565 2,610 10,305
Total portal revenues $ 58,042 $ 62,094 $ 57,721 $ 57,326 $ 235,183
 

 
NIC INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Thousands except par value amount
         
 
December 31, 2014 December 31, 2013
ASSETS
Current assets:
Cash $ 87,983 $ 74,245
Cash restricted for payment of dividend - 22,982
Trade accounts receivable, net 57,468 52,818
Deferred income taxes, net 1,039 1,038
Prepaid expenses & other current assets 11,502 11,569
Total current assets 157,992 162,652
Property and equipment, net 12,247 15,167

Intangible assets, net

2,394 1,864
Other assets 446 290
Total assets $ 173,079 $ 179,973
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 41,402 $ 39,112
Accrued expenses 19,751 20,822
Dividend payable - 22,982
Other current liabilities 2,902 348
Total current liabilities 64,055 83,264
 
Deferred income taxes, net 1,536 2,432
Other long-term liabilities 3,350 2,341
Total liabilities 68,941 88,037
 
Commitments and contingencies - -
 
Stockholders' equity:
Common stock, $0.0001 par, 200,000 shares authorized,
65,303 and 64,993 shares issued and outstanding 7 6
Additional paid-in capital 94,690 88,397
Retained earnings 9,441 3,533
Total stockholders' equity 104,138 91,936
Total liabilities and stockholders' equity $ 173,079 $ 179,973
 

 
NIC INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
Thousands
                   
 
Additional
Common Stock Paid-in
Shares Amount Capital Retained Earnings Total
Balance, January 1, 2014 64,993 $ 6 $ 88,397 $ 3,533 $ 91,936
Net income - - - 39,058 39,058
Dividends declared - - - (32,977 ) (32,977 )
Dividend equivalents on performance-based
restricted stock awards - - - (173 ) (173 )
Restricted stock vestings 358 1 73 - 74
Dividend equivalents cancelled upon forfeiture of
performance-based restricted stock awards - - 35 - 35
Shares surrendered and cancelled upon vesting of restricted
stock to satisfy tax withholdings (116 ) - (2,276 ) - (2,276 )
Stock-based compensation - - 6,104 - 6,104
Tax deductions relating to stock-based compensation - - 1,185 - 1,185
Shares issuable in lieu of dividend payments on unvested
performance-based restricted stock awards - - 65 - 65
Issuance of common stock under employee stock purchase plan 68     -   1,107     -     1,107  
Balance, December 31, 2014 65,303   $ 7 $ 94,690   $ 9,441   $ 104,138  
 

 
NIC INC.
CASH FLOW SUMMARY
(UNAUDITED)
Thousands
                 
Three months ended Twelve months ended
December 31, December 31,
  2014   2013   2014   2013
 
Cash flows from operating activities:
Net income $ 8,291 $ 6,181 $ 39,058 $ 32,038
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization 2,358 2,112 9,177 8,333
Provision for losses on accounts receivable 148 104 414 5,229
Stock-based compensation expense 1,536 759 6,104 4,026
Deferred income taxes 2 72 (2,461 ) (1,070 )
Loss on disposal of property and equipment 28 34 175 51
Changes in operating assets and liabilities:
(Increase) decrease in trade accounts receivable, net 4,282 8,123 (5,064 ) (2,786 )
(Increase) decrease in prepaid expenses & other current assets (665 ) 613 1,631 (928 )
(Increase) in other assets (94 ) (31 ) (156 ) (37 )
Increase (decrease) in accounts payable (77 ) (6,685 ) 2,325 (4,502 )
Increase (decrease) in accrued expenses 354 (1,890 ) (3,449 ) (587 )
Increase in other current liabilities 224 104 2,628 223
Increase in other long-term liabilities   299     1     901     863  
Net cash provided by operating activities   16,686     9,497     51,283     40,853  
Cash flows from investing activities:
Purchases of property and equipment (1,393 ) (2,772 ) (5,381 ) (6,717 )
Proceeds from sale of property and equipment - 16 - 16
Capitalized internal use software development costs   (408 )   (410 )   (1,479 )   (1,489 )
Net cash used in investing activities   (1,801 )   (3,166 )   (6,860 )   (8,190 )
Cash flows from financing activities:
Cash dividends on common stock (32,977 ) - (32,977 ) -
Cash restricted for payment of dividend - (22,982 ) - (22,982 )
Proceeds from employee common stock purchases - - 1,107 904
Tax deductions related to stock-based compensation   120     (33 )   1,185     1,302  
Net cash used in financing activities   (32,857 )   (23,015 )   (30,685 )   (20,776 )
Net increase (decrease) in cash (17,972 ) (16,684 ) 13,738 11,887
Cash, beginning of period   105,955     90,929     74,245     62,358  
Cash, end of period $ 87,983   $ 74,245   $ 87,983   $ 74,245  
Other cash flow information:
Non-cash investing activities:
Capital expenditures accrued but not yet paid $ 102 $ 185 $ 102 $ 185
Cash payments:
Income taxes paid $ 4,395 $ 3,195 $ 25,059 $ 15,939
Cash dividends on common stock previously restricted for payment of dividend $ - $ - $ 22,982 $ -
 

CONTACT:
NIC Inc.
Angela Davied, 913-754-7054
Director of Communications
& Investor Relations
adavied@egov.com