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National Research Corporation Announces Third Quarter 2017 Results

LINCOLN, Neb., Nov. 07, 2017 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the third quarter of 2017.

  • Net New Sales $5.4 million
  • Total Contract Value $123.6 million
  • Revenue up 7% to $29.0 million
  • Net Income of $4.2 million

Revenue for the third quarter ended September 30, 2017, was $29.0 million, compared to $27.0 million for the same quarter in 2016. Net income for the quarter ended September 30, 2017, was $4.2 million, compared to $4.7 million for the quarter ended September 30, 2016. Diluted earnings per share decreased to $0.09 for Class A shares and $0.57 for Class B shares for the quarter ended September 30 2017, from $0.11 for Class A shares and $0.66 for Class B shares for the quarter ended September 30, 2016.

Regarding third quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Third quarter net new sales increased by 5% over the same period last year as we continued to add new clients and increase contract value with existing clients during the quarter. Our increase in operating income from revenue growth was offset by approximately $975,000 in expenses for our proposed recapitalization.”

A listen-only simulcast of National Research Corporation’s 2017 third quarter conference call will be available online at https://edge.media-server.com/m6/p/jfk3domr on November 8, 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
September 30,
Nine months ended
September 30,
2017 2016 2017 2016
Revenue$ 28,951 $ 27,032 $ 87,661 $ 81,016
Operating expenses:
Direct expenses 12,267 11,468 36,706 33,741
Selling, general and administrative 8,430 7,139 22,021 21,766
Depreciation and amortization 1,132 1,086 3,376 3,146
Total operating expenses 21,829 19,693 62,103 58,653
Operating income 7,122 7,339 25,558 22,363
Other income (expense):
Interest income 29 12 58 34
Interest expense (18) (38) (68) (158)
Other, net 40 (4) 76 112
Total other income (expense) 51 (30) 66 (12)
Income before income taxes 7,173 7,309 25,624 22,351
Provision for income taxes 3,020 2,580 9,198 7,558
Net income$ 4,153 $ 4,729 $ 16,426 $ 14,793
Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A$ 0.10 $ 0.11 $ 0.39 $ 0.35
Class B$ 0.59 $ 0.67 $ 2.34 $ 2.11
Diluted Earnings Per Share:
Class A$ 0.09 $ 0.11 $ 0.38 $ 0.35
Class B$ 0.57 $ 0.66 $ 2.28 $ 2.08
Weighted average shares and share
equivalents outstanding
Class A - basic
20,788 20,716 20,759 20,712
Class B - basic 3,514 3,511 3,514 3,503
Class A - diluted 21,740 21,068 21,537 21,017
Class B - diluted 3,620 3,556 3,595 3,557


NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
Sep. 30, Dec. 31,
2017 2016
ASSETS
Current Assets:
Cash and cash equivalents$35,750 $33,021
Accounts receivable, net 13,588 10,864
Income taxes receivable 61 14
Other current assets 4,423 3,166
Total Current Assets 53,822 47,065
Property and equipment, net 12,089 11,806
Goodwill 58,036 57,861
Other, net 4,793 3,892
Total Assets$128,740 $120,624
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses$3,757 $3,916
Deferred revenue 18,486 15,497
Accrued compensation 4,151 4,543
Dividends payable 4,218 4,213
Income taxes payable 1,862 662
Notes payable 1,693 2,683
Total Current Liabilities 34,167 31,514
Non-Current Liabilities 5,729 6,304
Total Liabilities 39,896 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 25,799,230 in 2017 and 25,656,760 in 2016,
outstanding 20,942,785 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 50,121 46,725
Retained earnings 75,278 71,507
Accumulated other comprehensive loss (1,528) (2,626)
Treasury stock (35,057) (32,830)
Total Shareholders' Equity 88,844 82,806
Total Liabilities and Shareholders' Equity$128,740 $120,624

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

Source:National Research Corporation