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):
May
4, 2009
NIC
INC.
(Exact
name of registrant as specified in its charter)
|
Colorado |
000-26621 |
52-2077581 |
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(State or other jurisdiction of incorporation or organization)
|
(Commission
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(I.R.S.
Employer
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25501 West Valley Parkway, Suite 300 Olathe, Kansas 66061 |
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(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 (see General Instruction A.2. below):
⃞ 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 May 4, 2009, NIC Inc. issued a press release announcing its 2009 first quarter financial results. A copy of the press release is furnished with this report on Form 8-K as Exhibit 99.
ITEM 7.01 REGULATION FD DISCLOSURE
On May 4, 2009, NIC Inc. issued a press release announcing its 2009 first quarter financial results. A copy of the press release is furnished with this report on Form 8-K as Exhibit 99.
NIC Inc. will host a conference call, which will also be available by webcast, to discuss its 2009 first quarter financial results at 4:30 p.m. EST on May 4, 2009.
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 May 4, 2009, announcing its 2009 first quarter financial results, furnished solely for purposes of incorporation by reference to Item 2.02 herein.
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.
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NIC Inc. |
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Date: |
May 4, 2009 |
/s/ Stephen M. Kovzan |
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Stephen M. Kovzan |
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Chief Financial Officer |
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- 3 -
Exhibit 99
NIC Portal Revenue Grows 11 Percent in First Quarter 2009
OLATHE, Kan.--(BUSINESS WIRE)--May 4, 2009--NIC Inc. (NASDAQ: EGOV) today announced net income of $2.8 million and earnings per share of four cents on total revenues of $27.4 million for the three months ended March 31, 2009. Operating income was $4.7 million in the current quarter, flat year over year. In first quarter 2008, the Company reported net income of $3.0 million and earnings per share of five cents on total revenues of $24.7 million.
Quarterly portal revenues were a record $26.4 million, up 11 percent over first quarter 2008. On a same-state basis, portal revenues grew 10 percent in the first quarter, compared to a 12 percent increase during the same period a year ago. NIC's same-state transaction-based revenues from non-driver record exchange (non-DMV) services rose 31 percent over first quarter 2008 through strong performance from several key applications, including tax filings, vehicle title and registration applications, and the new Alabama state liquor store payment service launched in the fourth quarter of 2008. On a same-state basis, DMV revenues rose two percent in the first quarter of 2009.
“We remain confident in NIC’s ability to grow even in these turbulent times,” said Harry Herington, Chairman of the Board and Chief Executive Officer of NIC.
Selling and administrative expenses were $6.3 million in the current quarter compared to $6.0 million in the first quarter of 2008. As a percentage of portal revenue, selling and administrative expenses were 24 percent in the current quarter compared to 25 percent in the first quarter of 2008.
Interest income for the quarter was approximately $41,000, down from $333,000 in the first quarter of 2008, reflecting lower short-term interest rates on the Company’s cash reserves and funds invested in U.S. Government agencies and direct obligations of the U.S. Treasury.
Cash flow from operations was $5.7 million in the first quarter. At March 31, 2009, NIC’s cash and cash equivalents totaled $46.7 million. On February 27, 2009, NIC used $19.2 million of its cash reserves to pay a $0.30 per share special cash dividend to shareholders.
“First quarter portal revenues and margins were in line with our expectations as our portal business continues to deliver consistent growth,” said Steve Kovzan, Chief Financial Officer of NIC. “We were particularly pleased to see a modest rebound in same-state DMV revenue growth from a weak fourth quarter 2008.”
First Quarter Earnings Call and Webcast Details
Dial-In Information
Monday, May 4, 2009
4:30 p.m. (EDT)
| Call bridge: | 800-762-8908 (U.S. callers) or 480-629-9039 (international callers) | |||
| Call leaders: | Harry Herington, Chairman of the Board and Chief Executive Officer | |||
| Steve Kovzan, Chief Financial Officer |
Webcast and Podcast Information
To sign in and listen: The Webcast system is available at http://www.nicusa.com/investor .
A replay of the Webcast will be available until 11:00 p.m. (EDT) on August 3, 2009, by visiting http://www.nicusa.com/investor . The conference call replay will also be available via Podcast download by visiting http://www.nicusa.com/investor .
An audio replay of NIC’s first quarter earnings call will be available until 11:00 p.m. (EDT) on May 11 by dialing 1-800-406-7325 and using passcode 4058085. International callers may dial 303-590-3030 and use the aforementioned passcode to access the audio playback.
About NIC
NIC is the nation’s leading provider of official government portals, online services, and secure payment processing solutions. The company’s innovative eGovernment services help reduce costs and increase efficiencies for government agencies, citizens, and businesses across the country. NIC provides eGovernment solutions for 2,900 federal, state, and local agencies that serve more than 70 million people in the United States. Additional information is available at http://www.nicusa.com .
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
Any statements contained in this release that do not relate to historical or current facts constitute forward-looking statements. These statements include NIC’s financial guidance for the current fiscal year 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, 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 services by businesses and citizens; competition; and general economic conditions (including the recent worsening in such conditions) and the other important cautionary statements and risk factors described in NIC's 2008 Annual Report on Form 10-K filed on March 13, 2009, with the Securities and Exchange Commission. 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 | |||
| Three months ended | |||
| March 31, | |||
| 2009 | 2008 | ||
| Revenues: | |||
| Portal revenues | $ 26,404 | $ 23,796 | |
| Software & services revenues | 1,006 | 883 | |
| Total revenues | 27,410 | 24,679 | |
| Operating expenses: | |||
|
Cost of portal revenues, exclusive of depreciation & amortization |
14,892 | 12,704 | |
|
Cost of software & services revenues, exclusive of
|
616 | 433 | |
| Selling & administrative | 6,271 | 5,963 | |
| Depreciation & amortization | 936 | 847 | |
| Total operating expenses | 22,715 | 19,947 | |
| Operating income | 4,695 | 4,732 | |
| Other income (expense): | |||
| Interest income | 41 | 333 | |
| Other expense, net | (1) | (19) | |
| Total other income | 40 | 314 | |
| Income before income taxes | 4,735 | 5,046 | |
| Income tax provision | 1,957 | 2,058 | |
| Net income | $ 2,778 | $ 2,988 | |
| Basic net income per share | $ 0.04 | $ 0.05 | |
| Diluted net income per share | $ 0.04 | $ 0.05 | |
| Weighted average shares outstanding (as Restated) | |||
| Basic | 62,796 | 62,119 | |
| Diluted | 62,844 | 62,479 | |
| Key Financial Metrics: | |||
| Revenue growth - outsourced portals | 11% | 20% | |
| Same state revenue growth - outsourced portals | 10% | 12% | |
| Recurring portal revenue percentage | 91% | 91% | |
| Gross profit % - outsourced portals | 44% | 47% | |
| Selling & administrative as a % of portal revenue | 24% | 25% | |
| Operating income margin as a % of portal revenue | 18% | 20% | |
| Portal Revenue Analysis: | |||
| DMV transaction-based | $ 12,372 | $ 11,978 | |
| Non-DMV transaction-based | 9,616 | 7,509 | |
| Portal software & services | 2,479 | 2,242 | |
| Portal management | 1,937 | 2,067 | |
| Total portal revenues | $ 26,404 | $ 23,796 | |
| NIC INC. | |||||||
| CASH FLOW SUMMARY | |||||||
| (UNAUDITED) | |||||||
| Thousands | |||||||
| Three-months Ended | |||||||
| March 31, | |||||||
| 2009 | 2008 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ 2,778 | $ 2,988 | |||||
| Adjustments to reconcile net income to net cash provided by | |||||||
| operating activities: | |||||||
| Depreciation & amortization | 936 | 847 | |||||
| Stock-based compensation expense | 568 | 521 | |||||
| Application development contracts | (37 | ) | (37 | ) | |||
| Deferred income taxes | 1,618 | 1,762 | |||||
| Loss on disposal of property and equipment | 1 | 19 | |||||
| Changes in operating assets and liabilities: | |||||||
| (Increase) decrease in trade accounts receivable | 2,562 | (4,364 | ) | ||||
| (Increase) decrease in unbilled revenues | (69 | ) | 397 | ||||
| (Increase) decrease in prepaid expenses & other current assets | (57 | ) | 489 | ||||
| Increase (decrease) in accounts payable | (1,225 | ) | 4,180 | ||||
| (Decrease) in accrued expenses | (1,511 | ) | (1,117 | ) | |||
| Increase (decrease) in other current liabilities | 217 | (14 | ) | ||||
| (Decrease) in other long-term liabilities | (125 | ) | - | ||||
| Net cash provided by operating activities | 5,656 | 5,671 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (545 | ) | (1,277 | ) | |||
| Capitalized internal use software development costs | (109 | ) | (183 | ) | |||
| Purchases of investments | - | (1,000 | ) | ||||
| Sales and maturities of investments | - | 11,650 | |||||
| Net cash (used in) provided by investing activities | (654 | ) | 9,190 | ||||
| Cash flows from financing activities: | |||||||
| Cash dividends on common stock | (19,150 | ) | (15,709 | ) | |||
| Proceeds from employee common stock purchases | 465 | 280 | |||||
| Proceeds from exercise of employee stock options | - | 761 | |||||
| Net cash (used in) financing activities | (18,685 | ) | (14,668 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (13,683 | ) | 193 | ||||
| Cash and cash equivalents, beginning of period | 60,373 | 38,236 | |||||
| Cash and cash equivalents, end of period | $ 46,690 | $ 38,429 | |||||
| Other cash flow information: | |||||||
| Income taxes paid | $ 792 | $ 367 | |||||
CONTACT:
NIC
Nancy Beaton, 913-754-7054
nbeaton@nicusa.com