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  
                                 

 
Contact:	Kevin R. Karas	Chief Financial Officer402-475-2525

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