National Research Corporation Announces Third Quarter 2016 Results


LINCOLN, Neb., Nov. 01, 2016 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the third quarter of 2016.

  • Net New Sales $5.2 million
  • Total Contract Value $115.2 million
  • Revenue up 7% to $27.0 million
  • Net Income of $4.7 million, up 14%

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “NRC’s strategy of bundling our various point solutions is today, creating enterprise-wide value for our clients and driving enhanced margins for the Company. Going forward, the uniqueness of these bundled offerings should accelerate growth rates in net new sales.”

Revenue for the quarter ended September 30, 2016, was $27.0 million, compared to $25.2 million for the same quarter in 2015. Net income for the quarter ended September 30, 2016, was $4.7 million, compared to $4.1 million for the quarter ended September 30, 2015. Diluted earnings per share increased to $0.11 for Class A shares and $0.66 for Class B shares for the quarter ended September 30, 2016, from $0.10 for Class A shares and $0.59 for Class B shares for the quarter ended September 30, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.19 for the quarter ended September 30, 2016, from $0.17 for the third quarter 2015.       

Regarding third quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continue to see positive results from our focus on revenue growth and expanding our operating income margin. Revenue and total contract value growth rates on a year-to-date basis have more than doubled over prior year.”

A listen-only simulcast of National Research Corporation’s 2016 third quarter conference call will be available online at http://edge.media-server.com/m/p/xcfef9v7 on November 2, 2016, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

For more than 35 years, National Research Corporation has been at the forefront of patient-centered care, helping healthcare providers measure and improve quality and services through analytics that offer a rich understanding of customers’ experiences, preferences, risks and behaviors across the healthcare continuum.

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.


NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
 
 Three months ended
September 30,
 Nine months ended
September 30,
 2016
 2015
 2016
 2015
                     
Revenue$27,032  $25,244  $81,016  $75,979
 
     
Operating expenses:    
Direct expenses 11,468   11,006   33,741   33,246 
Selling, general and administrative 7,139   6,620   21,766   20,883 
Depreciation and amortization 1,086   1,070   3,146   3,109 
Total operating expenses 19,693   18,696   58,653   57,238 
                   
Operating income 7,339  6,548   22,363   18,741 
     
Other income (expense):    
Interest income 12  14   34   46 
Interest expense (38) (52)  (158)  (172)
Other, net (4)  (25)  112   (22)
                     
Total other income (expense) (30)  (63)  (12)  (148)
                     
Income before income taxes 7,309  6,485   22,351   18,593 
     
Provision for income taxes 2,580   2,346   7,558   6,910 
                     
Net income$4,729  $4,139  $14,793  $11,683 
                     
Earnings Per Share of Common Stock:    
Basic Earnings Per Share:    
Class A$0.11  $0.10  $0.35  $0.28 
Class B$0.67  $0.59  $2.11  $1.67 
Diluted Earnings Per Share:                    
Class A$0.11  $0.10  $0.35  $0.28 
Class B$0.66  $0.59  $2.08  $1.65 
                     
Weighted average shares and share equivalents outstanding                    
Class A - basic 20,716   20,726   20,712   20,769 
Class B - basic 3,511   3,478   3,503   3,478 
Class A - diluted 21,068   20,937   21,017   21,002 
Class B - diluted 3,556   3,521   3,557   3,522 
               


 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
  
 Sept. 30, Dec. 31, 
 2016 2015 
ASSETS        
Current Assets: 
Cash and cash equivalents$28,878  $42,145  
Accounts receivable, net 14,115   9,808  
Income taxes receivable 12   157  
Other current assets 2,912   2,951  
Total Current Assets 45,917   55,061  
       
Property and equipment, net 11,659   11,125  
Goodwill 57,913   57,792  
Other, net 3,812   4,071  
Total Assets$119,301  $128,049  
         
LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
Current Liabilities:      
Accounts payable and accrued expenses$3,918  $3,394  
Deferred revenue 17,409   14,843  
Accrued compensation 3,893   4,391  
Dividends payable 3,372   18,440  
Income taxes payable 79   701  
Notes payable 2,460   2,402  
Total Current Liabilities 31,131   44,171  
       
Non-Current Liabilities 6,945   9,656  
       
Total Liabilities 38,076   53,827  
       
Shareholders’ Equity:      
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued --   --  
Class A Common stock, $0.001 par value; authorized 60,000,000 shares, issued 25,665,773 in 2016 and 25,592,812 in 2015, outstanding 20,900,082 in 2016 and 20,848,168 in 2015 26   26  
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,310,377 in 2016 and 4,271,413 in 2015, outstanding 3,541,433 in 2016 and 3,510,150 in 2015 4   4  
Additional paid-in capital 46,345   44,103  
Retained earnings 69,995   65,313  
Accumulated other comprehensive loss (2,315)  (2,995) 
Treasury stock (32,830)  (32,229) 
Total Shareholders’ Equity 81,225   74,222  
Total Liabilities and Shareholders’ Equity$119,301  $128,049  
         


NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
 
  Three months ended
September 30,
  Nine months ended
September 30,
  2016 2015 2016 2015
      
Combined Earnings Per Share     
Basic Earnings Per Share $0.19  $0.17  $0.61  $0.48 
Diluted Earnings Per Share $0.19  $0.17  $0.60  $0.47 
                 
Combined weighted average shares and share equivalents outstanding                
Combined - Basic  24,227   24,204   24,215   24,247 
Combined - Diluted  24,623   24,459   24,574   24,524 
                 

 


            

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