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National Research Corporation Announces Second Quarter 2017 Results

LINCOLN, Neb., Aug. 01, 2017 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the second quarter of 2017.

  • Net New Sales $5.6 million
  • Total Contract Value $121.7 million
  • Revenue up 9% to $28.4 million
  • Net Income of $5.8 million, up 26%

Revenue for the second quarter ended June 30, 2017, was $28.4 million, compared to $26.1 million for the same quarter in 2016. Net income for the quarter ended June 30, 2017, was $5.8 million, compared to $4.6 million for the quarter ended June 30, 2016. Diluted earnings per share increased to $0.13 for Class A shares and $0.80 for Class B shares for the quarter ended June 30 2017, from $0.11 for Class A shares and $0.64 for Class B shares for the quarter ended June 30, 2016.

Regarding second quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continued to see positive growth in revenue and operating income in the second quarter, bringing our 2017 year-to-date revenue growth rate to 9% and operating income growth rate to 23%, compared to the first half of 2016.”

A listen-only simulcast of National Research Corporation’s 2017 second quarter conference call will be available online at http://edge.media-server.com/m/p/v7vdqgk8 on August 2, 2017, 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 36 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of the patient and employee experience while also increasing patient engagement and customer loyalty for healthcare providers, payers and other healthcare organizations in the United States and Canada. The Company’s solutions enable its clients to understand the voice of the customer with greater clarity, immediacy and depth.

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 June 30, Six months ended June 30,
2017 2016 2017 2016
Revenue$28,435 $26,114 $58,710 $53,984
Operating expenses:
Direct expenses 11,939 10,734 24,439 22,273
Selling, general and administrative 6,905 7,270 13,591 14,627
Depreciation and amortization 1,139 1,092 2,244 2,060
Total operating expenses 19,983 19,096 40,274 38,960
Operating income 8,452 7,018 18,436 15,024
Other income (expense):
Interest income 15 11 29 22
Interest expense (23) (36) (50) (121)
Other, net 27 43 35 118
Total other income (expense) 19 18 14 19
Income before income taxes 8,471 7,036 18,450 15,043
Provision for income taxes 2,719 2,478 6,178 4,978
Net income$5,752 $4,558 $12,272 $10,065
Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A$0.14 $0.11 $0.29 $0.24
Class B$0.82 $0.65 $1.75 $1.44
Diluted Earnings Per Share:
Class A$0.13 $0.11 $0.28 $0.24
Class B$0.80 $0.64 $1.71 $1.41
Weighted average shares and share equivalents outstanding
Class A - basic 20,752 20,711 20,745 20,711
Class B - basic 3,514 3,508 3,514 3,498
Class A - diluted 21,525 20,992 21,404 21,002
Class B - diluted 3,591 3,565 3,584 3,557

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
Jun. 30, Dec. 31,
2017 2016
ASSETS
Current Assets:
Cash and cash equivalents$31,628 $33,021
Accounts receivable, net 13,138 10,864
Income taxes receivable 1,172 14
Other current assets 5,045 3,166
Total Current Assets 50,983 47,065
Property and equipment, net 12,138 11,806
Goodwill 57,942 57,861
Other, net 3,513 3,892
Total Assets$124,576 $120,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses$3,715 $3,916
Deferred revenue 16,735 15,497
Accrued compensation 4,076 4,543
Dividends payable 4,218 4,213
Income taxes payable -- 662
Notes payable 2,107 2,683
Total Current Liabilities 30,851 31,514
Non-Current Liabilities 5,895 6,304
Total Liabilities 36,746 37,818
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 25,796,457 in 2017 and 25,656,760 in 2016, outstanding 20,940,790 in 2017 and 20,891,069 in 2016 26 26
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,317,656 in 2017 and 4,308,875 in 2016, outstanding 3,540,244 in 2017 and 3,539,931 in 2016 4 4
Additional paid-in capital 49,620 46,725
Retained earnings 75,343 71,507
Accumulated other comprehensive loss (2,127) (2,626)
Treasury stock (35,036) (32,830)
Total Shareholders’ Equity 87,830 82,806
Total Liabilities and Shareholders’ Equity$124,576 $120,624


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

Source:National Research Corporation