-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S3zLqSuGDQliEGbH+LLDDu186rxaUbjWmw3Pm+3enFk5pGDy0GRmVCn3gwAg+Wu+ VIKyGyjLkAWMATpU1+7AfQ== 0001157523-03-003572.txt : 20030801 0001157523-03-003572.hdr.sgml : 20030801 20030801163944 ACCESSION NUMBER: 0001157523-03-003572 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030731 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030801 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NIC INC CENTRAL INDEX KEY: 0001065332 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT CONSULTING SERVICES [8742] IRS NUMBER: 522077581 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-26621 FILM NUMBER: 03818492 BUSINESS ADDRESS: STREET 1: 12 CORPORATE WOODS 10975 BENSON STREET STREET 2: SUITE 390 CITY: OVERLAND PARK STATE: KS ZIP: 66210 MAIL ADDRESS: STREET 1: 12 CORPORATE WOODS 10975 BENSON STREET STREET 2: SUITE 390 CITY: OVERLAND PARK STATE: KS ZIP: 66210 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL INFORMATION CONSORTIUM DATE OF NAME CHANGE: 19990618 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL INFORMATION CONSORTIUM INC DATE OF NAME CHANGE: 19990504 8-K/A 1 a4446319.txt NIC 8-K/A UNITED STATE SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): July 31, 2003 ------------- NIC INC. (Exact name of registrant as specified in its charter) Colorado 000-26621 52-2077581 -------- --------- ---------- (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 10540 South Ridgeview Road Olathe, Kansas 66061 -------------------- (Address of principal executive offices, including zip code) (877) 234-3468 (Registrant's telephone number, including area code) The registrant has amended this filing on Form 8-K to change the date of report (date of earliest event reported) from August 1, 2003 to July 31, 2003. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99 - Press release issued by NIC Inc. dated July 31, 2003, announcing 2003 second quarter earnings information ITEM 9. REGULATION FD DISCLOSURE (INFORMATION PROVIDED UNDER ITEM 12 - RESULTS OF OPERATIONS AND FINANCIAL CONDITION) The following information is furnished pursuant to Item 12 "Results of Operations and Financial Condition." On July 31, 2003, NIC Inc. issued a press release announcing 2003 second quarter earnings information. A copy of the press release is attached to this report on Form 8-K as Exhibit 99. 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: August 1, 2003 /s/ Stephen M. Kovzan --------------------- Stephen M. Kovzan Vice President, Financial Operations Chief Accounting Officer EX-99 3 a4446319_ex991.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 NIC Reports Record Second-Quarter Earnings; Company Reports Net Income of $1.4 Million and Record Portal Revenues of $10.2 Million OLATHE, Kan.--(BUSINESS WIRE)--July 31, 2003--NIC Inc. (Nasdaq:EGOV) today reported net income of $1.4 million and earnings per share of 2 cents for the three months ended June 30, 2003, as compared to a net loss of $7.4 million and loss per share of 13 cents in second quarter 2002. Total revenues for the quarter were $12.9 million, up from $12.5 million in first quarter 2003. Revenues for NIC's core outsourced portal business reached a record $10.2 million, up 13 percent over the prior-year quarter. During the same period, portal gross profit rose by 13 percent. The Company maintained a 48 percent gross profit percentage for the portal business, matching its performance during the same period last year as well as in first quarter 2003. Portal revenue growth included a 37% increase in non-DMV services (transactional revenues for eGovernment applications other than the electronic exchange of driver histories), which was a record $2.8 million for the quarter. Non-DMV growth for the quarter was driven primarily by increased usage of Uniform Commercial Code filing, corporation search, and professional licensing applications. Gross profit in the software and services business was $515,000 on revenues of $2.8 million, compared to a negative gross profit of $3.7 million on revenues of $3.9 million during the same period last year. Gross profit for second quarter 2002 was negatively affected by a pre-tax $4.3 million charge for cost overruns on the Company's legacy business filing contracts. The financial performance of the software and services business for the second quarter continued to match the Company's expectations. Selling and administrative expenses for the quarter were $2.9 million, or 23 percent of revenue, compared to $3.8 million, or 29 percent of revenue in the same quarter last year. On a sequential basis, overhead expenses were down two basis points from 25 percent of revenue in first quarter 2003. In the prior-year quarter, NIC recorded a pre-tax impairment charge of $4.3 million related primarily to the Company's IDT and AOL businesses. Second-quarter 2003 results included a pre-tax $300,000 non-operating gain in equity income from the 2001 sale of the Company's investment in Tidemark, an eGovernment software company. The gain was recognized after the completion of the two-year contingency period following the sale. NIC ended the second quarter with $15.9 million in cash and equivalents, up approximately $100,000 from March 31, 2003. During the same period, working capital grew by $2.2 million to $20.2 million. Second-Quarter Operating Highlights During the second quarter, Oklahoma (www.YourOklahoma.com) signed a one-year extension for portal management services. In addition, several of NIC's state and local government partners were recognized for national eGovernment excellence. In June, NIC's partners in Maine (www.Maine.gov), Kansas (www.accessKansas.org), Montana (www.DiscoveringMontana.com), and Iowa (www.Iowatreasurers.org) received electronic government innovation awards at the E-Gov 2003 Conference and Exposition in Washington, D.C. Last month, NIC's partners in Kent County, Michigan (www.accessKent.com) and Washtenaw County, Michigan (www.eWashtenaw.org) were also ranked among the top ten counties in their respective population categories by the Center for Digital Government's 2003 Digital Counties Survey. "NIC helps state and local governments use technology to get results, and we're very pleased that our partners are receiving this well-deserved recognition for their eGovernment programs," said Jeff Fraser, Chief Executive Officer of NIC. Third-Quarter Outlook The Company expects third-quarter 2003 results to resemble second-quarter 2003 performance. Total revenues should be slightly lower than second quarter due to expected seasonality for certain non-DMV services, and the mix between portal and software and services revenues could vary slightly. Operating income, portal gross margins, selling and administrative costs, and EPS should also be comparable to second-quarter 2003 results, while software and services gross margins may experience a modest decrease. Second-Quarter Earnings Webcast Details Webcast Information Thursday, July 31, 2003 9:00 a.m. EDT To sign in and listen: The Webcast system is available in the investor relations section of www.nicusa.com. Some users may need to refresh their browsers to view the Webcast information. A replay of the Webcast will be available until 5:00 p.m. EDT on October 31 by visiting www.nicusa.com. A replay of the call will be available until 5:00 p.m. EDT on August 7 by dialing 800-405-2236 and using passcode 544003. About NIC NIC manages more eGovernment services than any provider in the world. The company is helping governments communicate more effectively with citizens and businesses by putting essential services online. NIC provides eGovernment solutions for 1,400 state and local agencies that serve more than 71 million people in the United States. Additional company information is available at 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 services by businesses and citizens; competition; and general economic conditions and the other important cautionary statements and risk factors described in NIC's 2002 Annual Report on Form 10-K filed on March 20, 2003, with the Securities and Exchange Commission. NIC INC. FINANCIAL SUMMARY (UNAUDITED) (Thousands except for per share amounts) Three months ended Six months ended June 30, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Revenues: Portal revenues $ 10,159 $ 9,002 $ 19,949 $ 17,488 Software and services revenues 2,757 3,932 5,487 7,543 ------- ------- ------- ------- Total revenues 12,916 12,934 25,436 25,031 ------- ------- ------- ------- Cost of revenues: Cost of portal revenues, exclusive of depreciation and amortization 5,295 4,690 10,375 9,648 Cost of software and services revenues, exclusive of depreciation and amortization 2,242 7,678 4,386 10,013 Selling and administrative 2,937 3,781 6,057 7,576 Impairment loss - 4,316 - 4,316 Stock compensation - 995 - 1,306 Depreciation and amortization 450 938 942 1,866 ------- ------- ------- ------- Total operating expenses 10,924 22,398 21,760 34,725 ------- ------- ------- ------- Operating income (loss) 1,992 (9,464) 3,676 (9,694) ------- ------- ------- ------- Other income (expense): Interest income 30 55 59 96 Interest expense (4) (22) (9) (33) Equity in net loss of affiliates 262 (458) 202 (682) Other income (expense), net - (36) - (36) ------- ------- ------- ------- Total other income (expense) 288 (461) 252 (655) ------- ------- ------- ------- Income (loss) from continuing operations before income taxes 2,280 (9,925) 3,928 (10,349) Income tax provision (benefit) 923 (4,091) 1,582 (4,101) ------- ------- ------- ------- Income (loss) from continuing operations 1,357 (5,834) 2,346 (6,248) Discontinued operations: Loss from discontinued operations (less applicable income tax benefit of $-, $974, $-, and $1,302) - (1,562) - (2,028) ------- ------- ------- ------- Net income (loss) $ 1,357 $(7,396) $ 2,346 $(8,276) ======= ======= ======= ======= Basic and diluted earnings (loss) per share: Earnings (loss) per share -- continuing operations $ 0.02 $ (0.10) $ 0.04 $ (0.11) ======= ======= ======= ======= Loss per share -- discontinued operations $ - $ (0.03) $ - $ (0.04) ======= ======= ======= ======= Net earnings (loss) per share $ 0.02 $ (0.13) $ 0.04 $ (0.15) ======= ======= ======= ======= Weighted average shares outstanding: Basic 58,234 56,493 58,184 56,426 ======= ======= ======= ======= Diluted 58,654 56,493 58,411 56,426 ======= ======= ======= ======= Key Financial Metrics: Revenue growth -- outsourced portals 12.9% 46.5% 14.1% 51.1% Revenue growth -- software and services (29.9%) 22.5% (27.3%) 40.9% Gross profit % -- outsourced portals 47.9% 47.9% 48.0% 44.8% Gross profit % -- software and services 18.7% (95.3%) 20.1% (32.7%) Selling and administrative costs as a percentage of revenue 22.7% 29.2% 23.8% 30.3% NIC Inc. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Thousands except for share amounts) June 30, December 31, 2003 2002 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 10,257 $ 9,559 Cash and cash equivalents -- restricted 5,437 6,300 Marketable securities 250 249 Trade accounts receivable 16,701 14,465 Deferred income taxes 322 606 Prepaid expenses 464 761 Other current assets 6,545 3,215 ------- ------- Total current assets 39,976 35,155 Property and equipment, net 2,812 3,054 Deferred income taxes 33,872 35,049 Other assets 125 139 Investments in affiliates 739 839 Intangible assets, net 143 220 ------- ------- Total assets $ 77,667 $ 74,456 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 14,215 $ 12,701 Accrued expenses 4,454 3,792 Note payable -- current portion 151 332 Application development contracts 827 1,559 Other current liabilities 116 815 ------- ------- Total current liabilities 19,763 19,199 Note payable -- long-term portion 286 201 ------- ------- Total liabilities 20,049 19,400 ------- ------- Commitments and contingencies - - Shareholders' equity: Common stock, no par, 200,000,000 shares authorized 58,238,482 and 58,092,346 shares issued and outstanding - - Additional paid-in capital 197,376 197,160 Accumulated deficit (139,543) (141,889) ------- ------- 57,833 55,271 Less treasury stock (215) (215) ------- ------- Total shareholders' equity 57,618 55,056 ------- ------- Total liabilities and shareholders' equity $ 77,667 $ 74,456 ======= ======= NIC Inc. CASH FLOW SUMMARY (UNAUDITED) (Thousands) Three months ended Six months ended June 30, June 30, 2003 2002 2003 2002 ---- ---- ---- ---- Cash flows from operating activities: Net income (loss) $ 1,357 $ (7,396) $ 2,346 $ (8,276) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 450 1,094 942 2,257 Compensation expense recognized related to stock options - 995 - 1,306 Loss on disposal of property and equipment - 1,459 - 1,459 Accretion of discount on marketable securities - - - (4) Application development contracts (273) 2,998 (732) 1,296 Impairment loss - 4,316 - 4,316 Deferred income taxes 849 (5,075) 1,461 (5,454) Equity in net loss of affiliates (262) 458 (202) 682 Changes in operating assets and liabilities: (Increase) decrease in trade accounts receivable (749) 1,046 (2,236) (2,364) Decrease in prepaid expenses 270 66 297 181 (Increase) decrease in other current assets (2,029) (654) (3,320) 886 Decrease in other assets 7 125 14 93 Increase (decrease) in accounts payable 904 (2,568) 1,514 (915) Increase (decrease) in accrued expenses 159 (1,314) 734 (868) Increase (decrease) in other current liabilities (209) (1,735) (398) 101 ------- ------- ------- ------- Net cash provided by (used in) operating activities 474 (6,185) 420 (5,304) ------- ------- ------- ------- Cash flows from investing activities: Purchases of property and equipment (354) (220) (622) (303) Purchases of marketable securities - (500) - (20,595) Maturities of marketable securities - 760 - 17,041 ------- ------- ------- ------- Net cash provided by (used in) investing activities (354) 40 (622) (3,857) ------- ------- ------- ------- Cash flows from financing activities: Decrease in cash and cash equivalents -- restricted 25 - 863 - Payments on notes payable (25) (70) (96) (153) Payments on capital lease obligation - (6) - (6) Proceeds from exercise of employee stock options - 207 133 617 ------- ------- ------- ------- Net cash provided by financing activities - 131 900 458 ------- ------- ------- ------- Net increase (decrease) in cash and cash equivalents 120 (6,014) 698 (8,703) Cash and cash equivalents, beginning of period 10,137 14,546 9,559 17,235 ------- ------- ------- ------- Cash and cash equivalents, end of period $ 10,257 $ 8,532 $ 10,257 $ 8,532 ======= ======= ======= ======= Other cash flow information: Interest paid $ 4 $ 10 $ 9 $ 21 ======= ======= ======= ======= Income taxes paid $ 149 $ 59 $ 220 $ 66 ======= ======= ======= ======= CONTACT: NIC Inc. Eric Bur, 913-754-7003 ebur@nicusa.com or Chris Neff, 435-645-8898 cneff@nicusa.com -----END PRIVACY-ENHANCED MESSAGE-----