NIC Earns 25 Cents Per Share on Total Revenues of $92.5 Million
OLATHE, Kan.--(BUSINESS WIRE)--Aug 1, 2018--NIC Inc. (Nasdaq: EGOV), the dominant provider of digital government services, today announced net income of $17.0 million and earnings per share of 25 cents on total revenues of $92.5 million for the three months ended June 30, 2018. In the second quarter of 2017, the Company reported net income of $12.8 million and earnings per share of 19 cents on total revenues of $85.3 million.
Quarterly portal revenues were $86.6 million, a 9 percent increase over the second quarter of 2017. On a same-state basis, portal revenues increased 8 percent over the prior year quarter. Same-state, transaction-based revenues from Interactive Government Services (IGS) rose 10 percent over the second quarter of 2017, due primarily to higher volumes from a variety of services, including driver’s license renewals, motor vehicle inspections, and motor vehicle and business registration filings, among others. Same-state, transaction-based revenues from Driver History Records (DHR) were up 4 percent due to a price increase in one state and higher volumes across several states. Same-state portal software development revenues increased 39 percent, driven primarily by time & materials projects deployed in various states.
Second quarter 2018 portal revenues included $0.5 million from Illinois, the Company’s newest partnership.
Driven by strong same-state portal revenue growth, quarterly operating income increased 14 percent to $22.4 million, contributing to the increase in the Company’s operating income margin to 24 percent for the current quarter, from 23 percent in the prior year quarter.
The Company’s effective tax rate in the current quarter was 24 percent, down from 35 percent in the prior year quarter. The lower rate was attributable to favorable benefits related to the Tax Cuts and Jobs Act of 2017.
As previously announced, the Company recently purchased a suite of prescription drug monitoring program (PDMP) software assets developed by Leap Orbit, a Maryland-based, privately held company. The solution will be branded by NIC as RxGov, and leverages the Company’s expertise with PDMP solutions along with the industry-leading features of the acquired software to deliver a best-in-class solution to the marketplace.
“I was pleased with our strong financial results this quarter and I am excited about how we are strengthening our technology platforms and executing our healthcare vertical strategy,” said Harry Herington, NIC’s Chief Executive Officer and Chairman of the Board. “We look forward to delivering a completely re-imagined, industry-leading prescription drug monitoring solution, as well as choice and flexibility to this market.”
On July 30, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of 8 cents per share, payable to stockholders of record as of September 5, 2018. The dividend, which is expected to total approximately $5.4 million based on the current number of shares outstanding, will be paid on September 19, 2018, out of the Company’s available cash.
During the second quarter of 2018, several of the Company’s contracts were extended. The State of Wisconsin extended its contract with the Company’s Wisconsin Interactive, LLC subsidiary for three years, taking the agreement through May 2021. The states of Arkansas, Rhode Island, Hawaii, Nebraska, and Idaho extended their contracts with the Company for one year, and the state of Maine extended its contract with NIC subsidiary, Maine Information Network through December 31, 2018. In addition, the Library of Congress agreed to extend its contract with the Company to provide a second year of maintenance for the e-filing solution developed for the Copyright Royalty Board.
Second Quarter Earnings Call and Webcast Details
On the August 1, 2018 call, the Company will discuss its 2018 second quarter financial and operational results, 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.
To sign in for audio and slide presentation: The Webcast system is available at .
A replay of the Webcast will be available by visiting .
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 5,500 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 made 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 potential new contracts or renewals, statements relating to the Company’s expected effective tax rate and the potential effect of tax law changes, statements relating to possible future dividends and share repurchases, and other possible future events, including potential acquisitions, 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. These risks include 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 –in whole or in part, and to sign contracts with new federal, state, and local government agencies, the Company’s ability to identify and acquire suitable acquisition candidates and to successfully integrate any acquired businesses, risks related to the outcome of the Texas procurement process, as well as possible data security incidents. Any statements regarding our expected effective tax rate for 2018 reflect provisional amounts subject to adjustment during the one-year measurement period permitted under applicable law. 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 “Cautions 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 included in this release speak only as of the date of this release. Except as may be 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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