NIC Earns 25 Cents Per Share on Total Revenues of $92.5 Million

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.

Operational Highlights

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.

Dial-In Information

Webcast Information

To sign in for audio and slide presentation: The Webcast system is
available at

A replay of the Webcast will be available by visiting

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 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

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
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.

Three Months Ended

June 30,

Six Months Ended

June 30,

     June 30, 2018     



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