NIC Reports Second Quarter 2020 Results
NIC Inc. (Nasdaq: EGOV), the leading provider of digital government services, announced results for the second quarter of 2020 that ended June 30, 2020, as compared to the second quarter of 2019.
Additional Financial Highlights:
Several of the Company's long-term government partners recently extended their relationships with the Company:
After a competitive bid process, the state of Iowa recently named the Company as the winning bidder to provide enterprise digital government services to the state. The Company and the state are currently in the process of negotiating the contract.
NIC has forged a partnership with two market-leading firms, Impact Health and NEXT Marketing, to create TourHealth, a comprehensive and scalable rapid COVID-19 testing solution. TourHealth will leverage Gov2Go, NIC's citizen-centric mobile platform and personal government assistant, for citizen engagement, assessment and scheduling purposes. The TourHealth partnership was recently selected to provide two testing locations in the state of Florida, and was also selected by the state of Utah as one of only two COVID-19 testing vendors approved to provide scheduling, call center and test collection services for state agencies, local governments and educational institutions.
"We continue to respond to the unprecedented and ever-changing COVID-19 pandemic and are extremely excited about our new TourHealth partnership launching in Florida and Utah," said Harry Herington, NIC's Chief Executive Officer and Chairman of the Board. "We are also very pleased to welcome the state of Iowa back to the NIC family and with the tremendous success of our Virginia unemployment program. All of these are prime examples of how we support our government partners to provide essential services to citizens and businesses."
COVID-19 and Updated Full-Year 2020 Outlook:
NIC continues to evaluate the impact the COVID-19 pandemic may have on its business for the remainder of the year. Based on this ongoing evaluation, the Company continues to expect to come in near the low end of its previously issued guidance for total revenues, which was $380.5 million, adjusted EBITDA, which was $88.5 million, and earnings per share, which was 76 cents. The Company currently expects capital expenditures to range from $5 - $6 million in 2020. The Company's previous guidance for capitalized software development costs of $9 - $10 million for 2020 remains unchanged.
Second Quarter Earnings Call and Webcast Details
On July 29, 2020, the Company will host a call to discuss its 2020 second quarter financial performance and fiscal outlook, and 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.
Wednesday, July 29, 2020 at 4:30 p.m. (EDT)
To sign in and listen: The Webcast system is available at https://www.egov.com/investor-relations.html
A replay of NIC's second quarter earnings call will be available by visiting https://www.egov.com/investor-relations.html
NIC (Nasdaq: EGOV) is a leading digital government solutions and payments company, serving more than 7,000 federal, state and local government agencies across the nation. With headquarters in Olathe, Kansas, and offices in more than 30 states, NIC partners with government to deliver user-friendly digital services that make it easier and more efficient to interact with government - providing valuable conveniences like applying for unemployment insurance, submitting business filings, renewing licenses, accessing information and making secure payments without visiting a government office. In the COVID-19 era and beyond, NIC helps government agencies rapidly deliver new digital solutions to provide essential services to citizens and businesses alike. Having served the public sector for nearly 30 years, NIC continues to evolve with its federal, state and local government partners to deliver innovative and cost-effective digital government to constituents. Learn more at www.egov.com.
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin. Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation & amortization, stock-based compensation and other significant non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues. These measures should be used in addition to, and not as a substitute for, revenues, operating income, operating income margin, net income, earnings per share or other measures of profitability, liquidity or other performance measures computed in accordance with U.S. GAAP. The Company believes the presentation of adjusted EBITDA and adjusted EBITDA margin is useful to investors and other users as these measures represent key supplemental information to compare and evaluate the Company's core underlying business results over time and with other companies. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedule provides a full reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Adjusted EBITDA and adjusted EBITDA margin represent performance measures and are not intended to represent liquidity measures.
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 often address the Company's potential financial performance for the 2020 fiscal year or future fiscal years, 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, statements relating to possible future dividends and share repurchases, statements related to the ongoing impact of the COVID-19 pandemic, 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 impact of potential information technology, cybersecurity or data security breaches or incidents, the Company's ability to identify and acquire suitable acquisition candidates and to successfully integrate any acquired businesses, and the impact the COVID-19 pandemic may have on demand for the Company's services, as well as its government agency partners, its workforce and the broader economy. 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 subsequent reports filed with the SEC. These filings are available at the SEC's website 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, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.