Company Achieves Record Net New Sales

LINCOLN, NEB., Nov. 5, 2013 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA and NRCIB) today announced results for the third quarter of 2013.

  • Net New Sales $6.2 million
  • Total Contract Value $100.6 million
  • Revenue up 5% to $22.4 million
  • Operating Income to $6.0 million, up 7%

Remarking on company performance, Michael D. Hays, chief executive officer of National Research, said "Our planned investment in Customer Connect halved our operating income growth rate in the quarter. I anticipate accelerated spending on Customer Connect and similar growth runways in the coming quarters. Consequently, the company reaffirms, as previously announced, the suspension of cash dividends in favor of these investments."
Revenue for the quarter ended September 30, 2013, was $22.4 million, compared to $21.4 million for the same quarter in 2012. Net income for the quarter ended September 30, 2013, was $3.8 million, compared to $3.6 million for the quarter ended September 30, 2012. Combined diluted earnings per share increased to $0.16 for the quarter ended September 30, 2013, from $0.15 for the third quarter of 2012.
Regarding third quarter performance, Kevin Karas, chief financial officer of National Research, said, "Net new sales increased 32% over the third quarter 2012 to $6.2 million, setting a new company record. New contract wins and strong renewals in the quarter drove total contract value of largely subscription-based contracts past the $100 million mark."
A listen-only simulcast of the National Research 2013 third quarter conference call will be available online at on November 6, 2013, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.
About National Research Corporation
For more than 30 years, National Research Corporation (NASDAQ: NRCIA and NRCIB) has been at the forefront of patient-centered care. Today, the company's focus on empowering customer-centric healthcare across the continuum extends patient-centered care to incorporate families, communities, employees, senior housing residents, and other stakeholders. National Research clinical and healthcare analytics products and solutions identify a path to better quality outcomes and patient experiences for home health agencies.
Recognized by Modern Healthcare as the largest patient satisfaction firm in the U.S., National Research is dedicated to representing the true voice of patients and other healthcare stakeholders. This integration of cross-continuum metrics and analytics uncovers insights for effective performance improvement, quality measurement, care transitions, and many other factors that impact population health management.
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The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that calculate combined earnings per share based on combined Class A and Class B shares and share equivalents outstanding, respectively. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. Please note that the Company's non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company's financial information presented in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company's core business operations and to compare the company's performance with prior periods.
The company uses both GAAP and these non-GAAP financial measures for evaluating comparable financial performance against prior periods. This press release includes "forward-looking" statements related to the Company that can generally be identified as describing the Company's future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company's future results, please see the Company's filings with the Securities and Exchange Commission.

CONTACT:Kevin R. Karas 
         Chief Financial Officer