Full Press Release Details
Contact: Kevin R. Karas
Chief Financial Officer
NATIONAL RESEARCH CORPORATION ANNOUNCES
THIRD QUARTER 2017 RESULTS
LINCOLN, Nebraska (November 7, 2017) - National Research Corporation (NASDAQ: NRCIA and 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.
NRC Announces Third Quarter 2017 Results
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.
NRC Announces Third Quarter 2017 Results
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 |
NRC Announces Third Quarter 2017 Results
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 Liabilitie s | 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, iss ued 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 |