SOURCE: National Research Corporation

National Research Corporation

May 03, 2016 18:21 ET

National Research Corporation Announces First Quarter 2016 Results

LINCOLN, NE--(Marketwired - May 03, 2016) - National Research Corporation (NASDAQ: NRCIA)(NASDAQ: NRCIB) today announced results for the first quarter of 2016.

  • Net New Sales $5.9 million, up 18%
  • Total Contract Value $111.3 million
  • Revenue up 6% to $27.9 million
  • Net Income of $5.2 million, up 49%

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, "Double-digit growth in sales and net income shows strong financial performance which, combined with progress against our strategic initiatives, resulted in a very rewarding quarter."

Revenue for the quarter ended March 31, 2016, was $27.9 million, compared to $26.3 million for the same quarter in 2015. Net income for the quarter ended March 31, 2016, was $5.2 million, compared to $3.5 million for the quarter ended March 31, 2015. Diluted earnings per share increased to $0.12 for Class A shares and $0.73 for Class B shares for the quarter ended March 31 2016, from diluted earnings per share of $0.08 for Class A shares and $0.49 for Class B shares for the quarter ended March 31, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.21 for the quarter ended March 31, 2016, from $0.14 for the first quarter of 2015.

Regarding first quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, "Continued strong net new sales growth and increased client retention in the first quarter combined to drive significant improvement in our organic revenue growth rate. Revenue grew at a 6% rate in the first quarter, which is an 8% growth rate adjusted for the sale of our clinical workflow tool."

A listen-only simulcast of National Research Corporation's 2016 first quarter conference call will be available online at http://edge.media-server.com/m/p/gm9jwhzj on May 4, 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  
    March 31,  
    2016     2015  
                 
Revenue   $ 27,870     $ 26,270  
                 
Operating expenses:                
  Direct     11,539       11,799  
  Selling, general and administrative     7,357       7,627  
  Depreciation and amortization     968       1,015  
    Total operating expenses     19,864       20,441  
                 
    Operating income     8,006       5,829  
                 
Other income (expense):                
  Interest income     11       17  
  Interest expense     (85 )     (63 )
  Other, net     74       (1 )
                 
    Total other expense     --       (47 )
                 
    Income before income taxes     8,006       5,782  
                 
Provision for income taxes     2,833       2,302  
                 
    Net income   $ 5,173     $ 3,480  
                 
Earnings Per Share of Common Stock:                
  Basic Earnings Per Share:                
    Class A   $ 0.12     $ 0.08  
    Class B   $ 0.74     $ 0.50  
  Diluted Earnings Per Share:                
    Class A   $ 0.12     $ 0.08  
    Class B   $ 0.73     $ 0.49  
                 
                 
                 
Weighted average shares and share equivalents outstanding
               
  Class A - Basic     20,710       20,792  
  Class B - Basic     3,489       3,478  
  Class A - Diluted     20,948       21,033  
  Class B - Diluted     3,531       3,524  
                   
                   
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
             
    Mar. 31,     Dec. 31,  
    2016     2015  
ASSETS                
Current Assets:                
  Cash and cash equivalents   $ 25,366     $ 42,145  
  Accounts receivable, net     14,101       9,808  
  Income taxes receivable     1,919       157  
  Other current assets     3,428       2,951  
    Total Current Assets     44,814       55,061  
                 
Property and equipment, net     11,631       11,125  
Goodwill     57,944       57,792  
Other, net     3,981       4,071  
    Total Assets   $ 118,370     $ 128,049  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current Liabilities:                
  Accounts payable and accrued expenses   $ 4,354     $ 3,394  
  Deferred revenue     17,877       14,843  
  Accrued compensation     4,496       4,391  
  Dividends payable     3,369       18,440  
  Income taxes payable     -       701  
  Notes payable     2,422       2,402  
    Total Current Liabilities     32,518       44,171  
                 
Non-Current Liabilities     9,682       9,656  
                     
    Total Liabilities     42,200       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 25,646,624 in 2016 and 25,592,812 in 2015, outstanding 20,894,893 in 2016 and 20,848,168 in 2015     26       26  
  Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,298,886 in 2016 and 4,271,413 in 2015, outstanding 3,536,496 in 2016 and 3,510,150 in 2015     4       4  
  Additional paid-in capital     43,519       44,103  
  Retained earnings     67,118       65,313  
  Accumulated other comprehensive loss     (2,121 )     (2,995 )
  Treasury stock     (32,376 )     (32,229 )
    Total Shareholders' Equity     76,170       74,222  
    Total Liabilities and Shareholders' Equity   $ 118,370     $ 128,049  
                     
                     
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
    Three months ended
    March 31,
    2016   2015
Combined Earnings Per Share            
  Basic Earnings Per Share   $ 0.21   $ 0.14
  Diluted Earnings Per Share   $ 0.21   $ 0.14
Combined weighted average shares and share equivalents outstanding            
  Combined - Basic     24,198     24,270
  Combined - Diluted     24,479
    24,557

Contact Information

  • Contact:
    Kevin R. Karas

    Chief Financial Officer
    402-475-2525