NIC Announces 2018 Financial Guidance and Authorization of Stock Buyback Program
08 März 2018 - 10:00PM
Business Wire
NIC Inc. (Nasdaq: EGOV), the leading provider of digital
government services, today announced financial guidance for fiscal
year 2018. In addition, NIC announced its Board of Directors has
authorized a plan to repurchase up to $25 million of the Company’s
common stock.
Full-Year 2018 Outlook
For fiscal year 2018, NIC currently expects total revenues of
$333.0-343.0 million, with portal revenues ranging from
$310.0-319.0 million and software & services revenues ranging
from $23.0-24.0 million. The Company currently anticipates earnings
per share to range from 75-79 cents. Capital expenditures are
currently expected to range from $6-7 million, and capitalized
internal use software development costs to range from $3-4 million.
The Company currently expects its effective tax rate, before any
discrete items, to range from 24 to 25 percent in 2018. These
tax-related estimates may differ from actual results due to change
in interpretations of the Tax Cuts and Jobs Act of 2017 and
assumptions made by the Company, as well as guidance that may be
issued and actions the Company may take as a result of the Tax
Act.
The Company’s guidance reflects the completion of its current
Texas enterprise contract on August 31, 2018, and the commencement
of the new Texas payment services contract on September 1,
2018.
“We currently expect steady same state transactional revenue
growth in the mid- to upper-single digits, coupled with investments
to grow and evolve our business,” said Steve Kovzan, NIC’s Chief
Financial Officer. “This includes investments in our
citizen-centric Gov2Go national platform, enterprise licensing,
permitting and microservices platforms for use in Illinois and
other states and our sales and marketing teams to drive new
incremental business growth. While these investments will reduce
our earnings in the short term, they set the stage for future
growth and continued digital government industry leadership.”
The Company’s projections do not include revenues or costs from
any unannounced contracts.
Authorization of Stock Buyback Program
The Company Board of Directors has authorized a stock buyback
program to repurchase up to $25 million of the Company’s common
stock. Share repurchases may be funded using NIC’s existing cash
balance, future cash flows, or available line of credit. Future
share repurchases may be made in the open market or in privately
negotiated transactions as permitted by securities laws and other
legal requirements. The number of shares purchased under the
program and the timing of any purchases would be based on many
factors, including the level of the Company’s available cash,
general business conditions, and pricing. The stock buyback program
does not obligate the Company to acquire a specific number of
shares and may be suspended, modified, or terminated at any time.
The Company may enter into Rule 10b5-1 trading plans from time to
time under the program.
“I am pleased that our recurring cash flows and strong balance
sheet allow us to continue investing in growing the business while
returning capital to stockholders in the form of our quarterly cash
dividend,” said Harry Herington, NIC’s Chief Executive Officer and
Chairman of the Board. “In addition, our Board’s authorization of a
stock buyback program provides us the flexibility to make
opportunistic share repurchases when appropriate in the
future.”
Conference Call and Webcast Details
On March 8, 2018, the Company will host a call to discuss the
status of its business, as well as its 2018 financial guidance and
to answer questions from the investment community. The call may
also include a discussion of Company developments, and
forward-looking and other material information about business and
financial matters.
Dial-In Information
Thursday, March 8, 2018 4:30 p.m. (EST) Conference ID:
4019200 Call bridge: 888-882-4478 (U.S. callers) or
1-323-794-2149 (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/investor-relations.
A replay of NIC’s business update and 2018 financial guidance
call will be available by visiting
http://www.egov.com/investor-relations.
About NIC
NIC Inc. (Nasdaq: EGOV) is the nation’s premier provider of
innovative digital government solutions and secure payment
processing, which help make government interactions more accessible
for everyone through technology. The family of NIC companies has
developed a library of more than 13,000 digital government services
for more than 6,000 federal, state, and local government agencies.
Among these solutions is the ground-breaking personal assistant for
government, Gov2Go, delivering citizens personalized reminders and
a single access point for government interactions. More information
is available at www.egov.com.
Cautionary Statement Regarding Forward-Looking
Information
Any statements included 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
2018 fiscal year, estimates, projections, the expected length of
contract terms, statements relating to the Company’s business
plans, objectives and expected operating results, statements
relating to possible future dividends and share repurchases, and
the assumptions upon which those statements are based.
Forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties which may
cause actual results to differ materially from the forward-looking
statements, including regional or national business, political,
economic, competitive, social and market conditions, including
various termination rights of the Company and its partners, the
ability of the Company to renew existing contracts, and to sign
contracts with new states, and federal and local government
agencies, as well as possible data security incidents. With respect
to the Company’s effective tax rate for 2018, the estimate reflects
the Company’s current reasonable estimate of the income tax effects
of the recently enacted tax legislation; however, these are
provisional amounts subject to adjustment during the one-year
measurement period. You should not rely on any forward-looking
statement as a prediction or guarantee about the future. A detailed
discussion of risks and uncertainties that could cause actual
results and events to differ materially from such forward-looking
statements is included in the sections titled “Risk Factors” and
“Caution About Forward-Looking Statements” of the Company’s most
recent Forms 10-K and 10-Q filed with the SEC. These filings are
available at the SEC's web site at www.sec.gov. Any forward-looking
statements made in this release speak only as of the date of this
release. Except as required by applicable law, we undertake no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20180308006085/en/
NIC Inc.Angela Davied, 913-754-7054adavied@egov.com
NIC (NASDAQ:EGOV)
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