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NIC Inc (EGOV)
Q4Â 2018 Earnings Conference Call
Jan. 30, 2019, 4:30 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
See all our earnings call transcripts.
Prepared Remarks:
Operator
Good day, and welcome to the NIC 2018 Fourth Quarter Earnings Announcement. Today's call is being recorded.
At this time, I'd like to turn the conference over to Angela Davied. Please go ahead, ma'am.
Angela Davied -- Vice President of Corporate Communications and Investor Relations
Thank you, operator. Good afternoon, everyone, and welcome to NIC's fourth quarter earnings call. The press release for NIC's fourth quarter 2018 earnings announcement was issued 30 minutes ago. Our earnings release is also available on our corporate website at egov.com/investor-relations. You may also call our headquarters at 877-234-3468 and we will email the information to you.
Joining us on the call today are NIC's CEO, Harry Herington; and Steve Kovzan, NIC's Chief Financial Officer. Following the reading of our cautionary statement regarding forward-looking information, our CEO and CFO will deliver prepared remarks. Then, we'll open for questions.
Any statements made during this call 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 2019 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, 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 and 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, states and local government agencies, the Company's ability to identify and acquire suitable acquisition candidates and to successfully integrate any acquired businesses, as well as possible data security incidents.
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 website at sec.gov. Any forward-looking statements made during this call speak only as of the date of this call, 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.
Now, it is my pleasure to introduce Harry Herington, NIC's Chief Executive Officer and Chairman of the Board.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Thank you, Angela. Let me begin the call today with news concerning the change in our executive team. Earlier this week, Robert Knapp resigned as NIC's Chief Operating Officer. Robert was a valuable asset to NIC for the last 19 years and was promoted to Chief Operating Officer in 2012. In addition to managing our core business, he led many significant initiatives during his tenure at NIC, including structuring our first transaction-based federal contract to operate the Pre-Employment Screening program. And more recently, he help shaped our vertical product strategy. His contributions will leave a lasting impact on NIC, and we wish him all the best.
The company has elected not to fill this position at this time. We have a strong management team in place, consisting of regional vice presidents and general managers who oversee our partner relationships and the digital government services we deliver. I know they will continue to do an outstanding job focusing on growing our business and providing excellent service to our government partners. I expect my full attention on the future.
In fact, we announced earlier this week that we secured our first contract to deliver the RXGov subscription drug monitoring platform. The five-year contract is with the State of Maryland and extends through 2024. RXGov will serve as a new technology platform to collect the information about controlled substances prescribed and dispensed in this state and the surrounding Mid-Atlantic region. I want to thank the state of Maryland and the regional health information exchange known as CRISP, the Chesapeake Regional Information System for our Patients, for their confidence in us. Another great contract comes from the Commonwealth of Pennsylvania. The Pennsylvania Game Commission and the Fish & Boat Commission have signed a 10-year agreement with us to deliver a new comprehensive outward licensing and permitting system. We will deliver our outdoor recreation solution which features the best functionality of all the unique hunt and fish licensing solutions we have developed over the years, including our premier system, Go Wild Wisconsin. This platform will bring modern technology to the Commonwealth's outdoor recreation-related services, such as hunting and fishing licenses, shooting range permits, boat renewals, youth fishing permits and much more.
When we launch this product in Pennsylvania, NIC will offer hunt and fish licensing solutions in 11 states, totaling more than $15 million transactions annually. This means NIC will become the largest provider of hunt and fish licensing services in the country. Specifically, Pennsylvania ranks second in the nation with 2.6 million hunting licenses, tags, permits and stamps sold in 2018. Thank you to the Pennsylvania Game Commission and the Fish & Boat Commission for your trust and your commitment for driving innovation for your citizens. Both new contracts are just a beginning of the value we believe our enhanced vertical product strategy will deliver to states across the US. Steve will touch on the financial aspects of these two contracts in a moment.
As a reminder, our current suite of vertical products includes the 2, I just mentioned, the RXGov, PDMP and our outdoor recreational platforms as well as our enterprise licensing and permitting solution, which
we're deploying in Illinois, plus payment processing. Our vertical product strategy is paying off as it is diversifying and enhancing our core business and is driving long-term revenue growth.
Financial results for the quarter were strong. Same-state revenue growth was in line with historical growth rates with total same-state revenues up 8% for the quarter and same-state IGS revenues up 11%.
For the year, we once again exceeded the high end of our annual revenue and earnings per share guidance. Our team secured 13 contract renewals in 2018, and we are constantly deploying new services
that make government interactions simpler, easier and more secure.
So what is in store for 2019? Strategies that continue our vision, which include three core elements. First, we remain focused on contract retention, securing new enterprisewide opportunities and delivering innovative solutions to our government partners. We've already secured two contracts with long-standing government partners in the new year, Nebraska and Colorado. State of Nebraska signed a new five-year contract with us to continue providing enterprisewide digital government services into 2026. The contract includes a base term of five years, plus a two-year renewal. In Colorado, the state signed a three-year contract renewal, which runs into 2022, to continue providing digital government solutions. Special thanks to our partners in Nebraska and Colorado. We appreciate your partnership over the years, and we look forward to delivering more innovative services in the future. The second element of our strategy in 2019 includes continuing to diversify the business by enhancing our portfolio of vertical products. This includes expanding the number of products we offer and identifying acquisition opportunities that complement our vertical strategy.
And finally, we continue to leverage our financial strength, which has allowed us to make critical investments in our core business while maintaining our commitment to return capital to our stockholders in the form of quarterly cash dividends. Also, we continue to maintain a pristine balance sheet, which we will strive to more actively utilize in 2019 to drive long-term growth with a focus on attractive acquisition opportunities that fit strategically, culturally and financially with NIC and that enhance our ability to deliver industry-leading digital government solutions.
That is just a sample of what's ahead for us this year. I am focused on and excited about the future and growing the business. Myself, the executive team, all the NIC employees are dedicated to making 2019
one of NIC's best years ever.
And with that, it's my pleasure to turn the call over to NIC's Chief Financial Officer, Steve Kovzan. Steve?
Stephen M. Kovzan -- Chief Financial Officer
Thank you, Harry. In the fourth quarter of 2018, we earned $0.15 per share compared to $0.16 in the prior year quarter. Total revenues for the quarter decreased 6% to $78.6 million, with portal revenues also down 8% from the prior year quarter, driven largely by lower revenues from the new Texas payment processing contract, which commenced on September 1, 2018 compared to the legacy contract for comparison purposes.
Portal revenues in the current quarter included $6.1 million from the new Texas payment processing contract, compared to $15.4 million of revenues from the legacy contract in the prior year quarter. In addition, portal revenues in the current quarter included $600,000 of revenue from Illinois, down from $2.4 million in the prior year quarter when we delivered the first phase of the enterprise licensing and permitting platform.
Total same state portal revenues increased a healthy 8% for the quarter, breaking down the major components of same state revenue growth. Same state Interactive Government Services or IGS revenues were up 11% from the prior year quarter, driven by some of our key nationwide services including motor vehicle registrations, vehicle inspections and driver's license renewals.
Same state Driver History Record or DHR revenues increased 3% over the prior year quarter. Due primarily to a previously disclosed price increase in one state as well as higher volumes across several states.
And lastly, same state time and materials revenues increased 21% for the quarter driven by various products across multiple states. Software and services revenues totaled $6.3 million for the quarter, up 24% over the prior year quarter. This growth resulted mainly from an increase in revenues from the federal Pre-employment Screening Program and to a lesser extent from other payment processing services and from the new federal Recreation.gov service, which launched on October 1, 2018 and generated approximately $300,000 in revenue and what we expect to be the seasonally weakest quarter each year to the service.
Operating income for the fourth quarter decreased 28% resulting in an operating income margin of 16%, down from 21% in the prior year quarter. This was primarily driven by significantly lower revenues and profits from the new Texas payment processing contract compared to the legacy contract and to lower revenues and profits from Illinois.
Current quarter results also reflect an increase in selling and administrative expenses, driven by higher compensation related costs for business development and companywide information technology operations and an increase in intangible asset amortization expense, driven in part by approximately $300,000 in amortization expense related to the previously announced acquisition of prescription drug monitoring software assets in 2018, which we've rebranded as RxGov and by the amortization of capitalized software development costs related to ongoing investments in enterprise platform solutions.
Now, I'll briefly recap full year fiscal 2018 results. Total revenues were up 2% to $344.9 million in 2018, exceeding the high-end of our total revenue guidance for the year. Portal revenues increased 3% to $320.6 million in 2018. Full year 2018 portal revenues included $49 million from the legacy Texas contract, an $8.1 million from the new payment processing contract. In 2017, revenues from the legacy Texas contract totaled $65.7 million. Also 2018 portal revenues included $1.3 million from Illinois compared to $2.4 million in 2017. Same state portal revenues finished the year up a strong 9% with same state IGS transaction based revenues up 11% and same state DHR revenues up 3%.
Same state time and materials revenues relating to portal software development increased 27% for the year. Software and services revenues decreased 3% to $24.3 million in 2018. Recall that results in the prior year reflect a one-time $2.8 million spike in revenues Lifetime Senior Passes through the YourPassNow digital park pass service, we managed on behalf of the National Park Service. Demand for passes increased significantly in the months leading up to a legislative price increase that became effective at the end of August 2017.
Operating income decreased 4% to $75.1 million for the year, with operating margins down slightly to 22% from 23% in 2017. NIC's effective tax rate for the year was 23%, down from 34% in 2017. As we've shared over the past year, the lower rate was primarily attributable to favorable benefits related to the Tax Cuts and Jobs Act.
We closed out 2018 with earnings per share of $0.87, up from $0.77 in 2017, exceeding the high-end of our earnings guidance for the year. Our consistently strong cash flow generation allowed our Board of Directors to declare regular quarterly cash dividends totaling $0.32 per share in 2018 and our Board of Directors recently declared a regular quarterly cash dividend of $0.08 per share for the first quarter of 2019 payable in March 2019.
Now let's move on to guidance for fiscal year 2019. Currently expect total revenues to range from $333.5 million to $342.5 million with portal revenues to range from $306 million to $314 million and software and services revenues to range from $27.5 million to $28.5 million. Currently anticipate earnings per share to range from $0.70 to $0.74.
2019 will be a reset year of sorts for NIC from a financial standpoint, a trough year for operating margins and a baseline year the benchmark our future performance. Clearly Texas created a significant revenue and profitability headwind in 2019 with materially lower revenues and profit margins from the new payment processing contract compared to the legacy contract.
High-end of our guidance reflects a slight 1% decline in portal revenues with revenues from the new Texas payment processing contract to approximate $24 million for the year, but at significantly lower profit margins at our companywide average due to the payment services nature of the contract whereby most of the revenue we earn will be offset by corresponding credit card interchange fees.
Our portal revenue guidance also reflects $1.3 million of revenue from Illinois, where we currently expect to deliver the second phase of the core enterprise licensing and permitting system by the end of the first quarter. Our guidance for Illinois includes no revenue from new licensing and permitting printing services. Although, we are currently in active discussions with agencies and are working hard to expand services in the state. As a housekeeping note, both Texas and Illinois will be excluded from the same state category in 2019.
2019 will be a strong year for our core portal business, as we expect to produce our strongest same state organic revenue growth in the past five years. We currently expect same state revenue growth to range from 8% to 10% in 2019 driven by higher transaction based revenues from the expected deployment of dozens of new IGS services across several states including statewide payment processing in New Jersey and the mid-year launch of the auto titling and registration system in Wisconsin, which we estimate will generate $2.5 million to $3 million in annual run rate revenues.
Furthermore, our software and services businesses are expected to post strong results as well with revenues ranging from $27.5 million to $28.5 million in 2019. High-end of this range reflects 17% growth in 2019, driven by a full year of revenues from Recreation.gov, under which we are a subcontractor to Booz Allen Hamilton.
Our guidance also reflects revenue contributions from our new federal contract with USDA to deliver a voice of the customer solution and from our new contract in Maryland to deliver our new RxGov prescription drug monitoring platform. Total contract value in Maryland calls for us to be paid a minimum of $1.7 million in SaaS-base fees over the life of the five-year contract. And we believe, we will have opportunities to secure additional upside revenues.
Next, I'll provide some color on the cost for OpEx side of our guidance, which reflects approximately $2 million in incremental development and implementation costs. To configure our comprehensive outdoor recreation licensing and permitting solution to meet the specific needs of Commonwealth of Pennsylvania. We currently except to launch the system in early 2020, and to generate in excess of $3.5 million annually in transaction-based revenues over the life of the 10-year contract. Our guidance also reflects approximately $1 million in operating losses from our new RXGov PDMP platform.
This amount excludes intangible asset amortization, associated with the PDMP technology acquisition we made last year, which I'll touch on in a moment. Finally, our guidance excludes any costs associated with Robert Knapp's resignation because they're still being evaluated.
Capital expenditures are currently expected to range from $4 million to $5 million, while capitalized internal use software development costs will range from $7 million to $8 million, reflecting ongoing investments in enterprise platform solutions such as RXGov and Gov2Go and for enhancements to our industry-leading proprietary payment processing solutions and internal application development tools.
Amortization expense is expected to increase by $3 million to $3.5 million in 2019, due mainly to amortization of the RXGov platform and to amortization of capitalized software development costs related to investments in enterprise platform solutions. Recall that we acquired the RXGov technology assets in 2018 for approximately $3.5 million with potential
additional deferred consideration of approximately $3.5 million, if certain conditions are met. We currently expect to pay the deferred consideration by the end of the first quarter of 2019 and expect associated RXGov intangible asset amortization expense to approximate $2.4 million in 2019. Moving on, we expect to generate higher interest income on our investable cash balance in 2019. As more than half of the $192 million in cash on our balance sheet at year-end 2018 was earning interest. Our EPS guidance for 2019 reflects approximately $0.02 from interest income.
From an income tax standpoint, we currently expect our effective tax rate before any discrete items to approximate 24% in 2019. One final reminder on our guidance, as always, our projections do not include revenues or costs from any unannounced contracts.
And with that, I will turn the call back over to Harry.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Thank you, Steve. I look forward to a strong year for NIC in 2019. Our three prong strategy to retain contracts, to diversify by expanding upon our vertical strategy and to leverage our financial strength through more active capital allocation is already paying off. We're seeing encouraging momentum with the recent signing of two new contracts in key government verticals, and we expect our core business to generate the strongest organic growth we've seen in the past five years. I firmly believe that NIC's best days are ahead of
us.
With that, operator, we'll now open up the call for questions.
Questions and Answers:
Operator
Thank you. (Operator Instructions) And we'll take our first question from Peter Heckman from Davidson. Please go ahead, sir.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Good afternoon, everyone. Nice results.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Thank you, Pete.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Any -- I'm sure you would've called them out if they were material, but congrats on the renewals in Nebraska and Colorado. Any changes in terms of conditions there -- that are notable, or we should be thinking about?
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
No. There are potentially the same. It's a great relationship. We've a tremendous partnership with them for years and I'm excited.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Great. Great. And then the FMCSA preemployment screening application have been extended to February 28. Given the government shutdown, what you think is most likely outcome there? Do you think that contract will still be rebid, and do you think we'll see another short-term extension?
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
With the dance that's going on right now in DC, I'm not even going to weigh in on that. I think it is what we said before, and unfortunately, you have about the same transparency as we do into that.
Stephen M. Kovzan -- Chief Financial Officer
But the one thing I will say is that, I don't think the government shutdown affected -- has affected that business at all. No, we're operating that on behalf of the FMCSA with the trucking companies.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Yes, and then the shut down, I was mainly referring to any work that they were doing on a rebid, but that's good to know as well. I meant to ask that. And then lastly, I know you have a buyback authorization placed, and it looked like you acted on it in 2018, but is there any buyback included in the annual guidance for 2019?
Stephen M. Kovzan -- Chief Financial Officer
Not specifically, Pete. But if it makes sense for us to do it and, again, we find opportunistic chances to do that, we will absolutely not hesitate to do that.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Great. All right. I'll get back in the queue. Appreciate it.
Stephen M. Kovzan -- Chief Financial Officer
Pete, appreciate it. Thanks.
Operator
(Operator Instructions) And our next question is from Joseph Vafi from Loop Capital.
Joseph Vafi -- Loop Capital Markets -- Analyst
Nice results on the earnings line. Any update on new RFPs out there, Harry or anything else on the new business development front on an organic basis, we should be worried about? And I have a follow up.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Yes, and what I would tell you is when we -- from an enterprise -- traditional enterprisewide standpoint, no, there's nothing out there. When we're looking at the vertical growth that we have, there's a lot of opportunities. I'm not going to speak to any type of our feed just because of the highly competitive nature of those. But I would tell you, we got traction. I like what I'm seeing, and I like where we're heading.
Joseph Vafi -- Loop Capital Markets -- Analyst
Okay, that's helpful. And then if we kind of drill down into some of the same-state growth, it would be interesting or helpful to get a feel for -- I mean it's hard to know how much maybe economically driven versus continuing to expand out your service offerings in the states?
Stephen M. Kovzan -- Chief Financial Officer
Yes, Joe, this is Steve. In terms of the growth, certainly, that we saw during the quarter and in 2018 and also kind of reflected in our guidance for 2019 mainly is the addition of new services in our existing states. That's where we expect to see most of our growth. We called out a couple, one of them related to a new contract we signed with the State of New Jersey, the statewide payment processing. And the other one was the one that we talked about for -- have talked about for over the past year, and that's the auto titling and registration system that we'll be launching, we currently expect, midyear next year. So that's really most of the growth we're seeing is from new services.
Joseph Vafi -- Loop Capital Markets -- Analyst
Okay, that's helpful. And then when you kind of focus on this -- more on this verticalization, are you -- how do these contracts work with the states? Are you tacking this on to existing vehicles? Or is this kind of new business that's slightly away from your existing contracts and it's maybe perhaps a slightly different new way of doing business?Thanks.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
It's a little bit of both. I'll tell you what we strive for. We can use our existing contracts to leverage when going in. That is, of course, how we're building those relationships and demonstrating these verticals, these products that we have, we're going to do that. In these cases, these we're stand-alone. We had opportunities to go in and speak with the agencies and present our case, and we won these opportunities. So they are stand-alone contracts, and we will embrace that as well, whether it's a NIC portal state where we have contracts, non-NIC states. The nice thing about when we start looking at the products and diversifying somewhat, it does give us unique opportunities into states in which do we do not have a business unit there right now.
Joseph Vafi -- Loop Capital Markets -- Analyst
Okay, great. And then if I could just sneak one more in on the M&A front. Any different thoughts here, Harry, on large versus small? I mean, we had the small software acquisition a couple of quarters ago. Is this -- is that the playbook here? Or is it possible that we could see some larger deals?
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
No we chase -- thank you, that's a great question. We chased larger deals last year. And we have beat out. And we did -- although, it looks like a small deal, the technology is phenomenal. It gives us a great opportunity. Here's the deal, my team is out there looking for the right solutions that's going to help us either grow the core business or some of these verticals. And we're not looking at the size, it isn't a deciding factor, it is a solution. What does that solution do? How does that get us to be able to get to the next level? And then we go and look at the size and what's the return of that and make sure it's appropriate for the stockholders. So don't ever worry about whether our -- we're looking for just a whole bunch of small things. We are just looking for the right things.
Stephen M. Kovzan -- Chief Financial Officer
Yes. The one thing I would add, Joe, is that the government technology market is highly fragmented. And we typically see most of the opportunities that come to auction in the government technology services market. Well, we're kind of in that unique position where we have these really broad relationships across the number of state agencies and states that -- where we can potentially take complementary or strategic acquisitions regardless of size. And sell them into our states, and as Harry said, into non-NIC state. So we're kind of in a unique position there to be able to drive value from acquired businesses, and we continue to look proactively and aggressively.
Joseph Vafi -- Loop Capital Markets -- Analyst
Sure. Great. Thanks very much for the color guys.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Thank you.
Operator
And we'll take our next question from Herb Buchbinder from Stifel.
Herbert Buchbinder -- Stifel Financial Corp. -- Analyst
Hi, Harry. That last question kind of covered what I wanted, but maybe you can give a little bit more detail about the ideal kind of acquisition you'd like to make. And if you did say something last year, I'd just like to get an idea of how high you might go in terms of the value if you found the right thing. You've got plenty of cash, but would you borrow money to do a deal if it was the right thing to do?
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Absolutely, Herbert. And yes, you're right. How big are we willing to go? It depends on the opportunity and the value it brings back. We did have a company that we went after last year that would have required us to leverage the company to get them because they were the right one. And so I'm not -- I mean, we're debt free. That actually gives us a lot of freedom, a lot of ability to do stuff. But we are not nervous about taking on debt for the right returns. So we're looking for things that will, again, expand our business, look at the core business or help us with these verticals. As Steve said, it's a very fragmented market. There's a lot of opportunities. I don't want to today limit what we're going after because, again, Steve also said, everything that is going to auction, if it's in the space, we get to see it and decide, is it right for us? Plus, we're building relationships with these companies that aren't right now going up for auction. That gives us the opportunity to show them what it would mean to be part of the NIC family. So just know, we are going to look for the right ones and we're aggressive at it. We are looking for the right ones that'll grow this company.
Herbert Buchbinder -- Stifel Financial Corp. -- Analyst
I know you want to do some obviously to continue to offset the loss of revenue in Texas and that's what we're hoping you can do. So keep up the good work.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Herb, I appreciate that. Have faith in us.
Herbert Buchbinder -- Stifel Financial Corp. -- Analyst
We do.
Stephen M. Kovzan -- Chief Financial Officer
Thanks, Herb.
Operator
And we'll take our next question from Peter Heckman from Davidson. Please go ahead.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Hey. I just have a follow-up. Congrats on winning the recreational licensing in Pennsylvania. Our notes indicated that the Commonwealth had actually awarded that to another company this time last year. And so just curious how that transpired that it's wound up now with NIC, if you can provide any background?
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
I'm going to be very careful here because I will not speak for the state. I mean that'd be inappropriate from there. What I will tell you is I challenge my people all the time. Whatever you do, we do it with the highest integrity. Going there, we gave a great presentation. We showed them what our product was, we showed them how we can actually deliver this. They initially did choose a different vendor, and then at some point, they decided that ours was going to be the one they wanted to go with. And they came and they gave it to us, gave us this opportunity to go out and deliver. I'm excited about it. You do good things, good things come back to you.
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
That's great. Congratulations.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
I appreciate that.
Operator
It appears we have no further questions at this time. I'd like to turn the conference back over to Harry Herington for any additional remarks.
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Thank you, Allie. And thank you to everyone who have joined us this afternoon. I look forward to sharing first quarter 2019 financial results with you on May 6, followed by our Annual Stockholder Meeting in Olathe, Kansas. I encourage you to be there on May 7. Thank you very much.
Operator
This concludes today's call. Thank you for your participation. You may now disconnect.
Duration: 32 minutes
Call participants:
Angela Davied -- Vice President of Corporate Communications and Investor Relations
Harry H. Herington -- Chief Executive Officer and Chairman of the Board
Stephen M. Kovzan -- Chief Financial Officer
Peter Heckmann -- D.A. Davidson & Co. -- Analyst
Joseph Vafi -- Loop Capital Markets -- Analyst
Herbert Buchbinder -- Stifel Financial Corp. -- Analyst
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