Full Press Release Details
| Contact: | Patrick E. Beans | |
| Chief Financial Officer | ||
| 402-475-2525 |
RESEARCH CORPORATION ANNOUNCES
QUARTER AND YEAR-END 2009 RESULTS
Rates Shows Material Improvement
Nebraska (February 9, 2010) - National Research Corporation (NASDAQ:NRCI) today
announced results for the fourth quarter and year-end 2009.
Commenting on the fourth quarter
results, Michael D. Hays, president and chief executive officer of National
Research Corporation, said, "Growth rates improved materially in the fourth
quarter which contributed to a more positive year-end than
anticipated. Most encouraging was the fact that we registered net new
contracts at NRC Picker for the quarter 150% greater than the first three
Revenue for the quarter ended December
31, 2009, increased 14% to $13.8 million, compared to $12.2 million for the same
period in 2008. Net income for the fourth quarter was $2.2 million,
or $0.34 basic and $0.33 diluted earnings per share, compared with net income of
$1.9 million, or $0.29 basic and $0.28 diluted earnings per share, in the prior
year period. Operating income increased 12% to $3.3 million for the
quarter ended December 31, 2009, compared to $3.0 million for the same period in
Revenue for the year ended December 31,
2009, was $57.7 million, compared to $51.0 million for the same period in 2008,
an increase of 13%. Net income for the year ended December 31, 2009,
increased 14% to $8.5 million, resulting in $1.28 basic and $1.26 diluted
earnings per share, up 15% and 16%, respectfully over the same period in
Announces 2009 Fourth Quarter and Year End Results
In closing, Patrick E. Beans, chief
financial officer of National Research Corporation, said, "NRC Picker, which
represented 44% of 2009 revenue, materially constrained our consolidated
performance for the year. Now, with improving sales, I look forward
to positive contributions from that part of our business."
RESEARCH CORPORATION
of Consolidated Net Earnings to Consolidated EBITDA (Unaudited)
| Year Ended | ||||||||
| December 31, | ||||||||
| 2009 | 2008 | |||||||
| Net income | $ | 8,491 | $ | 7,445 | ||||
| Provision for income taxes | 4,626 | 4,538 | ||||||
| Total other (income) expense | 580 | 6 | ||||||
| Depreciation and amortization | 3,831 | 2,685 | ||||||
| EBITDA | $ | 17,528 | $ | 14,674 |
We define EBITDA as net income
excluding provision for income taxes, total other (income) expenses (which is
primarily interest expense, interest income and changes in foreign currency
exchange rates), depreciation and amortization. EBITDA is not a
measure of performance calculated in accordance with accounting principles
generally accepted in the United States. EBITDA, as we calculate it,
may not be comparable to EBITDA reported by other companies.
listen-only simulcast of National Research Corporation's 2009 fourth quarter and
year-end conference call will be available online at www.earnings.com on
February 10, 2010, beginning at 11:00 a.m. Eastern time. The online
replay will follow approximately one hour later and continue for 30
Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider
of performance measurement, improvement services, and governance education to
the healthcare industry in the United States and Canada.
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.
Announces 2009 Fourth Quarter and Year End Results
RESEARCH CORPORATION
Consolidated Statements of Operations
thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue | $ | 13,842 | $ | 12,189 | $ | 57,692 | $ | 51,013 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct expenses | 5,548 | 5,766 | 24,574 | 23,611 | ||||||||||||
| Selling, general and administrative | 4,042 | 2,768 | 15,590 | 12,728 | ||||||||||||
| Depreciation and amortization | 928 | 682 | 3,831 | 2,685 | ||||||||||||
| Total operating expenses | 10,518 | 9,216 | 43,995 | 39,024 | ||||||||||||
| Operating income | 3,324 | 2,973 | 13,697 | 11,989 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | - | 9 | 2 | 42 | ||||||||||||
| Interest expense | (90 | ) | (21 | ) | (405 | ) | (139 | ) | ||||||||
| Other, net | (45 | ) | 82 | (177 | ) | 91 | ||||||||||
| Total other income (expense) | (135 | ) | 70 | (580 | ) | (6 | ) | |||||||||
| Income before income taxes | 3,189 | 3,043 | 13,117 | 11,983 | ||||||||||||
| Provision for income taxes | 951 | 1,148 | 4,626 | 4,538 | ||||||||||||
| Net income | $ | 2,238 | $ | 1,895 | $ | 8,491 | $ | 7,445 | ||||||||
| Net income per share, basic | $ | 0.34 | $ | 0.29 | $ | 1.28 | $ | 1.11 | ||||||||
| Net income per share, diluted | $ | 0.33 | $ | 0.28 | $ | 1.26 | $ | 1.09 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 6,639 | 6,642 | 6,637 | 6,685 | ||||||||||||
| Diluted | 6,725 | 6,782 | 6,723 | 6,831 |
Announces Fourth Quarter and Year-End 2009 Results
RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
| Dec. 31, | Dec. 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 2,512 | $ | 1,109 | ||||
| Accounts receivable, net | 5,214 | 6,531 | ||||||
| Income taxes recoverable | 803 | 574 | ||||||
| Other current assets | 3,134 | 2,225 | ||||||
| Total current assets | 11,663 | 10,439 | ||||||
| Net property and equipment | 13,975 | 13,747 | ||||||
| Other, net | 46,861 | 47,959 | ||||||
| Total Assets | $ | 72,499 | $ | 72,145 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,446 | $ | 2,208 | ||||
| Deferred revenue | 11,907 | 12,926 | ||||||
| Accrued compensation | 1,926 | 1,375 | ||||||
| Notes payable | 816 | 4,581 | ||||||
| Total current liabilities | 16,095 | 21,090 | ||||||
| Non-current liabilities | 12,233 | 12,457 | ||||||
| Total Liabilities | 28,328 | 33,547 | ||||||
| Shareholders' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,018,044 in 2009 and 8,019,922 in 2008; outstanding 6,662,111 in 2009 and 6,667,517 in 2008 | 8 | 8 | ||||||
| Additional paid-in capital | 27,871 | 27,217 | ||||||
| Retained earnings | 37,905 | 33,677 | ||||||
| Accumulated other comprehensive income (loss) | 769 | (6 | ) | |||||
| Treasury stock | (22,382 | ) | (22,298 | ) | ||||
| Total shareholders' equity | 44,171 | 38,598 | ||||||
| Total liabilities and shareholders' equity | $ | 72,499 | $ | 72,145 |