National Research Corporation Announces Fourth Quarter and Year-End 2017 Results

LINCOLN, Neb., Feb. 13, 2018 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the fourth quarter and year end 2017.

Fourth Quarter

  • Net New Sales $6.2 million
  • Revenue up 5% to $29.9 million
  • Net Income increased 14% to $6.5 million

Year-End 2017

  • Net New Sales $22.2 million
  • Revenue up 7% to $117.6 million
  • Net Income increased 12% to $22.9 million
  • Total Contract Value $125.1 million

Revenue for the fourth quarter ended December 31, 2017, was $29.9 million, compared to $28.4 million for the same quarter in 2016. Net income for the quarter ended December 31, 2017, was $6.5 million, compared to $5.7 million for the quarter ended December 31, 2016. Diluted earnings per share increased to $0.15 for Class A shares and $0.90 for Class B shares for the quarter ended December 31, 2017, from $0.13 for Class A shares and $0.80 for Class B shares for the quarter ended December 31, 2016.

Revenue for the year ended December 31, 2017, was $117.6 million, compared to $109.4 million for the same quarter in 2016. Net income for the year ended December 31, 2017, was $22.9 million, compared to $20.5 million for the year ended 2016. Diluted earnings per share increased to $0.52 for Class A shares and $3.18 for Class B shares for the year ended December 31, 2017, from diluted earnings per share of $0.48 for Class A shares and $2.88 for Class B shares for the year ended December 31, 2016.

Regarding the Company’s financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We are encouraged by our growth in quarterly net new sales performance, achieving $6.2 million in the fourth quarter. Our financial results for the fourth quarter include approximately $500,000 in additional expenses for our proposed recapitalization, as well as a net tax benefit of $1.1 million for the initial estimated impact of the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) and our recent decision to repatriate certain foreign earnings. We continue to analyze the impact of the Tax Act and will make adjustments as we complete our analysis during 2018.”

A listen-only simulcast of National Research Corporation’s 2017 fourth quarter conference call will be available online at https://edge.media-server.com/m6/p/p59zya7p on February 14, 2018, 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
December 31,
Twelve months ended
December 31,
2017 2016 2017 2016
Revenue$29,897 $28,368 $117,559 $109,384
Operating expenses:
Direct expenses 12,362 11,836 49,068 45,577
Selling, general and administrative 7,665 6,619 29,686 28,385
Depreciation and amortization 1,209 1,079 4,586 4,225
Total operating expenses 21,236 19,534 83,340 78,187
Operating income 8,661 8,834 34,219 31,197
Other income (expense):
Interest income 38 13 96 47
Interest expense (13) (32) (82) (190)
Other, net (27) 190 50 302
Total other income (expense) (2) 171 64 159
Income before income taxes 8,659 9,005 34,283 31,356
Provision for income taxes 2,142 3,280 11,340 10,838
Net income$ 6,517 $5,725 $ 22,943 $ 20,518
Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A$ 0.15 $ 0.14 $ 0.54 $ 0.49
Class B $ 0.93 $ 0.82 $ 3.26 $ 2.93
Diluted Earnings Per Share:
Class A $ 0.15 $ 0.13 $ 0.52 $ 0.48
Class B $ 0.90 $ 0.80 $ 3.18 $ 2.88
Weighted average shares and share equivalents outstanding
Class A - basic 20,802 20,717 20,770 20,713
Class B - basic 3,515 3,511 3,514 3,505
Class A - diluted 21,843 21,118 21,627 21,037
Class B - diluted 3,625 3,569 3,603 3,560

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)

Dec. 31,
Dec. 31,
2017
2016
ASSETS
Current Assets:
Cash and cash equivalents$34,733 $33,021
Accounts receivable, net 13,343 10,864
Income taxes receivable 375 14
Other current assets 3,808 3,166
Total Current Assets 52,259 47,065
Property and equipment, net 12,359 11,806
Goodwill 58,021 57,861
Other, net 4,677 3,892
Total Assets$ 127,316 $ 120,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses$3,546 3,916
Deferred revenue 16,878 15,497
Accrued compensation 6,597 4,543
Dividends payable 4,222 4,213
Income taxes payable -- 662
Notes payable 1,067 2,683
Total Current Liabilities 32,310 31,514
Non-Current Liabilities 4,965 6,304
Total Liabilities 37,275 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
25,835,230 in 2017 and 25,656,760 in 2016, outstanding 20,936,703 in 2017 and
20,891,069 in 2016
26 26
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued
4,319,256 in 2017 and 4,308,875 in 2016, outstanding 3,535,238 in 2017 and
3,539,931 in 2016
4 4
Additional paid-in capital 51,025 46,725
Retained earnings 77,574 71,507
Accumulated other comprehensive loss (1,635) (2,626)
Treasury stock (36,953) (32,830)
Total Shareholders’ Equity 90,041 82,806
Total Liabilities and Shareholders’ Equity$127,316 $120,624

Contact:

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

Source:National Research Corporation