Company Website:
http://www.egov.com
OLATHE, Kan. -- (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:
|
|
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4019200
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Call bridge:
| | |
888-882-4478 (U.S. callers) or 1-323-794-2149 (international callers)
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Call leaders:
| | |
Harry Herington, Chief Executive Officer and Chairman of the Board
|
| | |
Steve Kovzan, Chief Financial Officer
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| | |
Robert Knapp, Chief Operating Officer
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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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180308006085/en/
Contacts:
NIC Inc.
Angela Davied, 913-754-7054
adavied@egov.com
Source: NIC Inc.
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