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.
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
NIC (NASDAQ:EGOV)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
NIC (NASDAQ:EGOV)
Historical Stock Chart
Von Jul 2023 bis Jul 2024