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National Research Corporation Announces Fourth Quarter and Year-End 2012 Results

NRC

LINCOLN, Neb., Feb. 12, 2013 (GLOBE NEWSWIRE) -- National Research Corporation (Nasdaq:NRCI) today announced results for the fourth quarter and year-end 2012.

Fourth Quarter

  • Net new sales of $5.9 million
  • Revenue up 15% to $22.0 million
  • Net income up 18% to $3.7 million
  • Diluted earnings per share of $0.53, up 15%

Year-end 2012

  • Total contract value at $94.5 million
  • Revenue up 14% to $86.4 million
  • Net income up 30% to $15.1 million
  • Diluted earnings per share of $2.17, up 28%

Commenting on the fourth quarter and year-end results, Michael D. Hays, chief executive officer of National Research Corporation, said, "We clearly ended the year strong, which continues our positive performance trends of the past several years. With sales and client retention at record levels, combined with a robust new product pipeline, the prospects for 2013 are very bright."

Revenue for the quarter ended December 31, 2012, was $22.0 million, compared to $19.1 million for the same quarter in 2011. Net income for the quarter ended December 31, 2012, was $3.7 million, or $0.54 per basic share and $0.53 per diluted share, compared to $3.1 million for the fourth quarter 2011, or $0.47 per basic share and $0.46 per diluted share.

Revenue for the year ended December 31, 2012, was $86.4 million, compared to $75.8 million for the same period in 2011, an increase of 14%. Net income for the year ended December 31, 2012, was $15.1 million or $2.22 per basic share and $2.17 per diluted share, compared to $11.6 million for the year ended December 31, 2011, or $1.73 per basic share and $1.69 per diluted share.

In closing, Kevin Karas, chief financial officer of National Research Corporation, said, "We are very pleased with the financial performance in both the fourth quarter and full year that has been achieved as a result of our current business model. In particular, we are very encouraged with our continued trend of double-digit organic revenue growth and the increase in operating margin in 2012."

A listen-only simulcast of National Research Corporation's 2012 fourth quarter and year-end conference call will be available online at www.earnings.com on February 13, 2013, 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 31 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.

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
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Revenue $ 21,996 $ 19,111 $ 86,421 $ 75,767
Operating expenses:
Direct 9,128 7,178 35,461 28,667
Selling, general and administrative 6,001 5,648 23,542 23,300
Depreciation and amortization 1,093 1,275 4,699 5,065
Total operating expenses 16,222 14,101 63,702 57,032
Operating income 5,774 5,010 22,719 18,735
Other income (expense), net:
Interest income 12 5 32 13
Interest expense (125) (149) (541) (629)
Other, net 13 (14) (3) 41
Total other expense, net (100) (158) (512) (575)
Income before income taxes 5,674 4,852 22,207 18,160
Provision for income taxes 1,971 1,720 7,139 6,596
Net income $ 3,703 $ 3,132 $ 15,068 $ 11,564
Net income per share, basic $ 0.54 $ 0.47 $ 2.22 $ 1.73
Net income per share, diluted $ 0.53 $ 0.46 $ 2.17 $ 1.69
Weighted average shares outstanding:
Basic 6,838 6,691 6,775 6,672
Diluted 6,986 6,847 6,951 6,842
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands, except share amounts)
Dec. 31, Dec. 31,
2012 2011
ASSETS
Current Assets:
Cash and cash equivalents $ 8,286 $ 8,082
Accounts receivable, net 12,119 11,187
Income taxes receivable 158 --
Other current assets 3,252 2,868
Total current assets 23,815 22,137
Net property and equipment 12,493 13,613
Goodwill 57,799 57,730
Other, net 5,939 7,196
Total Assets $ 100,046 $ 100,676
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 2,658 $ 2,302
Deferred revenue 15,812 16,500
Accrued compensation 4,392 3,591
Income taxes payable -- 145
Notes payable 12,436 1,861
Total current liabilities 35,298 24,399
Non-current liabilities 8,006 20,723
Total Liabilities 43,304 45,122
Shareholders' Equity:
Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,376,592 in 2012 and 8,117,849 in 2011; outstanding 6,874,992 in 2012 and 6,724,280 in 2011 8 8
Additional paid-in capital 39,514 31,080
Retained earnings 44,700 46,995
Accumulated other comprehensive income 1,124 907
Treasury stock (28,604) (23,346)
Total shareholders' equity 56,742 55,554
Total liabilities and shareholders' equity $ 100,046 $ 100,676

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

Source:National Research Corporation