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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 Officer 402-475-2525

Source:National Research Corporation