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National Research Corporation Announces Second Quarter 2013 Results

NRC

LINCOLN, Neb., Aug. 6, 2013 (GLOBE NEWSWIRE) -- National Research Corporation (Nasdaq:NRCIA) (Nasdaq:NRCIB) today announced results for the second quarter 2013.

  • Net New Sales $4.5 million
  • Total Contract Value $97.6 million
  • Revenue up 8% to $22.4 million
  • Acute Care Revenue up 20% to $17.5 million
  • Operating Income to $5.5 million, up 6%

Remarking on company achievements, Michael D. Hays, chief executive officer of National Research Corporation (NRC), said "Having completed its market test, Customer Connect was launched June 1, 2013, complete with dedicated sales, service and development resources and $2.7 million in contract value. In addition, The Picker Institute will be introduced to the market September 22, 2013, as a signature offering of NRC. These new platforms should drive organic revenue growth to mid to upper teens with upside for targeted acquisitions."

Revenue for the quarter ended June 30, 2013, was $22.4 million, compared to $20.6 million for the same quarter in 2012. Net income for the quarter ended June 30, 2013, was $3.4 million, or $0.08 per diluted share for class A common stock and $0.49 per diluted share for class B common stock, compared to $3.9 million for the quarter ended June 30, 2012, or $0.09 per diluted share for class A common stock and $0.57 per diluted share for class B common stock.

Regarding second quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, "During the second quarter, we completed our recapitalization plan which helped create a significant increase in levels of trading volume subsequent to the May 22, 2013, plan effective date. In connection with the recapitalization, we incurred $250,000 of expenses in the second quarter for plan implementation.

"One other item to note is that our effective income tax rate for the second quarter of 2013 was 37.1%, compared to 22.9% in the second quarter of 2012, as an adjustment to state income tax expense of $575,000 related to legislative changes was recognized in the second quarter of 2012."

In closing, Mr. Karas commented that, "Our acute care business has constantly achieved very strong revenue growth and is cumulatively up 21% over the past four quarters. This most current quarter's 20% quarter-over-quarter growth was driven by acute care patient experience (18%), CGCAHPS (39%), Market Insights (20%), Discharge Calls (121%) and NRC Canada (15%). Given post-acute new sales for the first half of the year are in line with plan, post-acute revenue as recognized should add to our top-line growth rate."

A listen-only simulcast of National Research Corporation's 2013 second quarter conference call will be available online at http://www.media-server.com/m/p/9vkpsh8z on August 7, 2013, beginning at 11:00 am Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

For more than 32 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 AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended
June 30,
Six months ended
June 30,
2013 2012 2013 2012
Revenue $ 22,354 $ 20,632 $ 47,260 $ 43,039
Operating expenses:
Direct expenses 9,498 8,633 19,744 17,564
Selling, general and administrative 6,391 5,569 12,884 11,720
Depreciation and amortization 931 1,214 1,882 2,457
Total operating expenses 16,820 15,416 34,510 31,741
Operating income 5,534 5,216 12,750 11,298
Other income (expense):
Interest income 12 6 31 12
Interest expense (101) (140) (217) (282)
Other, net 18 29 32 14
Total other expense (71) (105) (154) (256)
Income before income taxes 5,463 5,111 12,596 11,042
Provision for income taxes 2,029 1,172 4,692 3,253
Net income $ 3,434 $ 3,939 $ 7,904 $ 7,789
Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A $ 0.08 $ 0.10 $ 0.19 $ 0.19
Class B $ 0.50 $ 0.58 $ 1.15 $ 1.16
Diluted Earnings Per Share:
Class A $ 0.08 $ 0.09 $ 0.19 $ 0.19
Class B $ 0.49 $ 0.57 $ 1.12 $ 1.12
Weighted average shares and share equivalents outstanding:
Class A - basic 20,672 20,254 20,671 20,206
Class B - basic 3,445 3,376 3,445 3,368
Class A - diluted 21,085 20,829 21,074 20,792
Class B - diluted 3,516 3,471 3,513 3,465
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
Jun. 30, Dec. 31,
2013 2012
ASSETS
Current Assets:
Cash and cash equivalents $ 10,802 $ 8,286
Accounts receivable, net 14,523 12,119
Income taxes receivable 255 158
Other current assets 4,085 3,252
Total current assets 29,665 23,815
Property and equipment, net 12,089 12,493
Goodwill 57,638 57,799
Other, net 5,507 5,939
Total Assets $ 104,899 $ 100,046
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 3,397 $ 2,658
Deferred revenue 15,763 15,812
Accrued compensation 3,071 4,392
Notes payable 2,511 12,436
Total current liabilities 24,742 35,298
Non-current liabilities 16,922 8,006
Total Liabilities 41,664 43,304
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 25,249,029 in 2013 and 25,129,776 in 2012, outstanding 20,732,784 in 2013 and 20,624,976 in 2012. 25 25
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,208,118 in 2013 and 4,188,296 in 2012, outstanding 3,455,411 in 2013 and 3,437,496 in 2012. 4 4
Additional paid-in capital 41,049 39,493
Retained earnings 50,462 44,700
Accumulated other comprehensive income 505 1,124
Treasury stock (28,810) (28,604)
Total shareholder's equity 63,235 56,742
Total liabilities and shareholders' equity $ 104,899 $ 100,046

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

Source:National Research Corporation