SOURCE: National Research Corporation

National Research Corporation

August 02, 2016 18:28 ET

National Research Corporation Announces Second Quarter 2016 Results

LINCOLN, NE--(Marketwired - August 02, 2016) - National Research Corporation (NASDAQ: NRCIA) (NASDAQ: NRCIB) today announced results for the second quarter of 2016.

  • Net New Sales $5.8 million
  • Total Contract Value $114.0 million
  • Revenue up 7% to $26.1 million
  • Net Income of $4.6 million, up 12%

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation, said, "Our Voice of the Customer platform is bringing to life for our partner organizations a variety of enterprise-wide use cases which enhance customer loyalty. These innovative solutions are distancing National Research from other more traditional offerings and we will continue to accelerate investments."

Revenue for the quarter ended June 30, 2016, was $26.1 million, compared to $24.5 million for the same quarter in 2015. Net income for the quarter ended June 30, 2016, was $4.6 million, compared to $4.1 million for the quarter ended June 30, 2015. Diluted earnings per share increased to $0.11 for Class A shares and $0.64 for Class B shares for the quarter ended June 30 2016, from $0.10 for Class A shares and $0.57 for Class B shares for the quarter ended June 30, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.18 for the quarter ended June 30, 2016, from $0.16 for the second quarter 2015.

Regarding second quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, "We are encouraged by the continued trends both in the second quarter and on a year-to-date basis of increased revenue growth rates along with leveraging of revenue growth to expand our operating income margin."

A listen-only simulcast of National Research Corporation's 2016 second quarter conference call will be available online at http://edge.media-server.com/m/p/ztkgrv4d on August 3, 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  Six months ended  
June 30,  June 30,  
  2016   2015  2016   2015  
                      
Revenue $ 26,114   $24,464  $ 53,984   $50,734  
                      
Operating expenses:                     
 Direct expenses   10,734    10,440    22,273    22,239  
 Selling, general and administrative   7,270    6,636    14,627    14,263  
 Depreciation and amortization   1,092    1,024    2,060    2,039  
  Total operating expenses   19,096    18,100    38,960    38,541  
                      
  Operating income   7,018    6,364    15,024    12,193  
                      
Other income (expense):                     
 Interest income   11    16    22    32  
 Interest expense   (36 )  (57 )  (121 )  (120 )
 Other, net   43    2    118    2  
                      
  Total other income (expense)   18    (39 )  19    (86 )
                      
  Income before income taxes   7,036    6,325    15,043    12,107  
                      
Provision for income taxes   2,478    2,261    4,978    4,563  
                      
  Net income $ 4,558   $4,064  $ 10,065   $7,544  
                      
Earnings Per Share of Common Stock:                     
 Basic Earnings Per Share:                     
  Class A $ 0.11   $0.10  $ 0.24   $0.18  
  Class B $ 0.65   $0.58  $ 1.44   $1.08  
 Diluted Earnings Per Share:                     
  Class A $ 0.11   $0.10  $ 0.24   $0.18  
  Class B $ 0.64   $0.57  $ 1.41   $1.07  
                      
Weighted average shares and share equivalents outstanding                
 Class A - basic   20,711    20,790    20,711    20,791  
 Class B - basic   3,508    3,478    3,498    3,478  
 Class A - diluted   20,992    21,029    21,002    21,031  
 Class B - diluted   3,565    3,522    3,557    3,523  
                  
  
                
  
  
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY 
Unaudited Condensed Consolidated Balance Sheets 
(Dollars in thousands, except per share amounts and par value) 
 
  June 30,   Dec. 31, 
  2016   2015 
ASSETS  
Current Assets:         
 Cash and cash equivalents $27,192   $42,145 
 Accounts receivable, net  11,075    9,808 
 Income taxes receivable  728    157 
 Other current assets  3,746    2,951 
  Total Current Assets  42,741    55,061 
          
Property and equipment, net  11,843    11,125 
Goodwill  57,946    57,792 
Other, net  3,969    4,071 
  Total Assets $116,499   $128,049 
          
LIABILITIES AND SHAREHOLDERS' EQUITY  
          
Current Liabilities:         
 Accounts payable and accrued expenses $3,535   $3,394 
 Deferred revenue  16,100    14,843 
 Accrued compensation  3,823    4,391 
 Dividends payable  3,371    18,440 
 Income taxes payable  -    701 
 Notes payable  2,441    2,402 
  Total Current Liabilities  29,270    44,171 
          
Non-Current Liabilities  7,571    9,656 
          
  Total Liabilities  36,841    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 4,307,186 in 2016 and 4,271,413 in 2015, outstanding 3,540,521 in 2016 and 3,510,150 in 2015  4    4 
 Additional paid-in capital  45,645    44,103 
 Retained earnings  68,638    65,313 
 Accumulated other comprehensive loss  (2,117 )  (2,995)
 Treasury stock  (32,538 )  (32,229)
  Total Shareholders' Equity  79,658    74,222 
  Total Liabilities and Shareholders' Equity $116,499   $128,049 
          
 
 
 
 
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
 
  Three months ended Six months ended
June 30, June 30,
  2016  2015 2016  2015
                  
Combined Earnings Per Share                 
 Basic Earnings Per Share $ 0.19  $0.17   $0.41  $0.31
 Diluted Earnings Per Share $ 0.18  $0.16   $0.41  $0.31
Combined weighted average shares and share equivalents outstanding             
 Combined - Basic   24,220   24,268    24,209   24,269
 Combined - Diluted   24,557   24,551    24,559   24,554
              
              

Contact Information

  • Contact:
    Kevin R. Karas
    Chief Financial Officer
    402-475-2525