Online Resources Provides 2004 Guidance
MCLEAN, Va., November 24, 2003
Online Resources Corp. (Nasdaq: ORCC), a leading outsourcer of Internet banking and payment services, today announced guidance for the 2004 calendar year, and reconfirmed its guidance for the fourth quarter of 2003.
The following statements are forward-looking, and actual results may differ materially. This guidance assumes no change in the method of accounting for equity compensation.
Business Outlook for 2004
- The Company expects revenue between $42.0 million and $44.0 million. This represents a midpoint growth of 13 percent over expected 2003 revenue, or 20 percent growth after adjusting for a one-time $2.2 million termination fee received in the first quarter of 2003.
- Gross profit margin is expected to be between 57 and 59 percent. This compares to the midpoint gross profit margin of 58.5 percent expected in 2003, or 56 percent after adjusting for the one-time fee.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be between $7.3 million and $8.0 million. This compares to the midpoint EBITDA expectation of $7.2 million for 2003, or $5.0 million after adjusting for the one-time fee.
- Net income is expected between $0.18 and $0.22 per share based on a projected 20 million weighted average fully diluted shares outstanding. This compares to the midpoint of $0.16 per share expected for 2003, or $0.02 per share after adjusting for the one-time fee.
The Company also reconfirmed its fourth quarter 2003 guidance. It added that it expects first quarter 2004 revenue to grow 2 percent sequentially with breakeven net income. Thereafter, with the effect of First Virginia's acquisition behind it, the Company expects to resume more typical quarterly sequential growth in revenue and earnings.
"Looking to the next three years, we are positioned like never before for high profit growth," stated Matthew P. Lawlor, chairman and chief executive of Online Resources. "Our foundation is solid with a well diversified client base, a strong balance sheet, an experienced management team and a proven business model that we believe is moving into a period of high earnings leveragability."
Lawlor added, "As our Internet banking business penetrates the consumer mass market, we see expanding growth opportunities for our bill payment business. Our consumer contact services business is also poised to drive increased consumer adoption and cross-selling of exciting new services like Money HQsm. Finally, we see such growth potential in the e-commerce market that we have decided to make a significant investment during 2004 to extend our patented real-time payments capabilities."
The Company's management will host a conference call to discuss its 2004 guidance on Monday, November 24, 2003 at 4:15 pm ET. The call is open to the public by dialing (877) 590-4770 for domestic participants and (706) 679-7688 for international participants. Alternatively, a live web cast of the call will be available through the "Investors" section of Online Resources' web site at www.orcc.com. The call and web cast will be recorded and available for playback from 8:00 p.m. ET on November 24 until midnight on Monday, December 1st by dialing (800) 642-1687 for domestic participants and (706) 645-9291 for international participants and enter code 3977695. For web cast replay, go to the "Investors" section of www.orcc.com.
About Online Resources
Online Resources (Nasdaq: ORCC - www.orcc.com) is an outsourcer of Internet banking and payment services to over 500 financial institutions nationwide. In contrast to other providers, Online Resources owns, operates and drives critical banking, payments and marketing infrastructure that enable a superior customer experience and Internet channel success. The company's services, branded to our financial institution clients, power over 100 million transactions and $8 billion in consumer bill payments annually. Founded in 1989, Online Resources has been recognized as one of the nation's fastest growing technology companies.
This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
Media Contact: Beth Halloran,
Director, Corporate Communications
703.394.5248
bhalloran@orcc.com
Investor Contact: Catherine Graham,
EVP & Chief Financial Officer
703.394.5155
cgraham@orcc.com
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