National Information Consortium Inc. (EGOV, Financial) filed Quarterly Report for the period ended 2009-09-30.
NIC Inc. is a provider of Internet-based electronic government services that help governments use the Internet to reduce costs and provide a higher level of service to businesses and citizens. They accomplish this currently through three different business segments: state and local portal businesses government procurement business and eGovernment products businesses. National Information Consortium Inc. has a market cap of $545.3 million; its shares were traded at around $8.65 with a P/E ratio of 41.2 and P/S ratio of 5.5. National Information Consortium Inc. had an annual average earning growth of 16.9% over the past 5 years.
Portal revenues for the nine months in the current fiscal year increased 29%, or approximately $20.8 million, over the prior year period. Of this increase, 17%, or approximately $11.9 million, was attributable to our new portals including West Virginia ($0.3 million), which began to generate DMV revenues in February 2008, and Texas ($11.6 million) and 12%, or approximately $8.9 million, was attributable to an increase in same state portal revenues. Same state portal revenues in the current year-to-date period increased 12% over the prior year period. Excluding Indiana and Arizona, same state portal revenues in the current year-to-date periods increased 12% over the prior year period, with same state DMV transaction-based revenues remaining flat and same state non-DMV transaction-based revenues increasing 30%, primarily due to the addition of several new revenue generating applications in existing portals.
Cost of portal revenues for the current quarter increased 57%, or approximately $7.6 million, over the prior year quarter. Of this increase, 44%, or $5.9 million, was attributable to our new state portal businesses in Texas ($5.7 million) and start-up costs in our New Mexico portal business ($0.2 million), which is expected to begin to generate revenues in the fourth quarter of 2009, and 13%, or approximately $1.7 million, was attributable to an increase in same state cost of portal revenues.
Cost of portal revenues for the nine months in the current fiscal year increased 37%, or approximately $14.5 million, over the prior period. Of this increase, 21%, or approximately $8.2 million, was primarily attributable to our newer Texas, New Mexico and West Virginia portals, and 16%, or approximately $6.3 million, was attributable to an increase in same state cost of portal revenues. The increase in same state cost of portal revenues for the nine-month period ended September 30, 2009 was attributable to additional personnel in several of our portal businesses, coupled with higher employee health insurance costs, and higher variable merchant fees to process credit card transactions, as further discussed above. Our portal gross profit rate for the nine months in the current year period was 42% compared to 46% in the prior year period, for reasons further discussed above.
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NIC Inc. is a provider of Internet-based electronic government services that help governments use the Internet to reduce costs and provide a higher level of service to businesses and citizens. They accomplish this currently through three different business segments: state and local portal businesses government procurement business and eGovernment products businesses. National Information Consortium Inc. has a market cap of $545.3 million; its shares were traded at around $8.65 with a P/E ratio of 41.2 and P/S ratio of 5.5. National Information Consortium Inc. had an annual average earning growth of 16.9% over the past 5 years.
Highlight of Business Operations:
Portal revenues in the current quarter increased 50%, or approximately $12.1 million, over the prior year quarter. Of this increase, 36%, or approximately $8.8 million, was attributable to our Acquired Texas Contracts, which we acquired in May 2009, and 14%, or approximately $3.3 million, was attributable to an increase in same state portal revenues (outsourced portals in operation and generating recurring revenues for two full periods). See Note 3 in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional information regarding our second quarter 2009 acquisition of the Acquired Texas Contracts.Portal revenues for the nine months in the current fiscal year increased 29%, or approximately $20.8 million, over the prior year period. Of this increase, 17%, or approximately $11.9 million, was attributable to our new portals including West Virginia ($0.3 million), which began to generate DMV revenues in February 2008, and Texas ($11.6 million) and 12%, or approximately $8.9 million, was attributable to an increase in same state portal revenues. Same state portal revenues in the current year-to-date period increased 12% over the prior year period. Excluding Indiana and Arizona, same state portal revenues in the current year-to-date periods increased 12% over the prior year period, with same state DMV transaction-based revenues remaining flat and same state non-DMV transaction-based revenues increasing 30%, primarily due to the addition of several new revenue generating applications in existing portals.
Cost of portal revenues for the current quarter increased 57%, or approximately $7.6 million, over the prior year quarter. Of this increase, 44%, or $5.9 million, was attributable to our new state portal businesses in Texas ($5.7 million) and start-up costs in our New Mexico portal business ($0.2 million), which is expected to begin to generate revenues in the fourth quarter of 2009, and 13%, or approximately $1.7 million, was attributable to an increase in same state cost of portal revenues.
Cost of portal revenues for the nine months in the current fiscal year increased 37%, or approximately $14.5 million, over the prior period. Of this increase, 21%, or approximately $8.2 million, was primarily attributable to our newer Texas, New Mexico and West Virginia portals, and 16%, or approximately $6.3 million, was attributable to an increase in same state cost of portal revenues. The increase in same state cost of portal revenues for the nine-month period ended September 30, 2009 was attributable to additional personnel in several of our portal businesses, coupled with higher employee health insurance costs, and higher variable merchant fees to process credit card transactions, as further discussed above. Our portal gross profit rate for the nine months in the current year period was 42% compared to 46% in the prior year period, for reasons further discussed above.
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