Full Press Release Details
Chief Financial Officer
RESEARCH CORPORATION ANNOUNCES
QUARTER AND YEAR-TO-DATE 2009 RESULTS
Contract Value Reaches $61 Million Driven by Strong New Sales
Nebraska (November 3, 2009) - National Research Corporation (NASDAQ:NRCI) today
announced results for the third quarter 2009.
Commenting on the third quarter
results, Michael D. Hays, president and chief executive officer of National
Research Corporation, said, "Even though we are not yet hitting on all
cylinders, net new contracts for the third quarter almost equaled the entire
first half of 2009. With this renewed wind at our back, several new
products, and added leadership depth, we should be set up for a strong fourth
quarter and finish for the year."
Revenue for the quarter ended September
30, 2009, was $13.5 million, virtually even with the same period in
2008. Net income for the third quarter was $2.0 million, or $0.30
basic and diluted earnings per share, compared with net income of $2.0 million,
or $0.30 basic and $0.29 diluted earnings per share, in the prior year
period. Operating income increased 4% to $3.3 million for the quarter
ended September 30, 2009, compared to $3.2 million for the same period in
Revenue for the first nine months of
2009 increased 13% to $43.9 million, compared to $38.8 million for the same
period in 2008. Net income for the first nine months of 2009
increased 13% to $6.3 million, resulting in $0.94 basic and $0.93 diluted
earnings per share, up 13% and 15%, respectively, over the same period in
Announces Third Quarter 2009 Results
In closing, Patrick E. Beans, chief
financial officer of National Research Corporation, said, "Achieving our stated
goal of 15% net income for the quarter on flat revenue shows a real commitment
to the margins. Margin expansion is also evident when comparing our
20% EBITDA growth year-over-year to revenue growth of 13%."
RESEARCH CORPORATION
of Consolidated Net Earnings to Consolidated EBITDA (Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2009 | 2008 | |||||||
| Net income | $ | 6,253 | $ | 5,550 | ||||
| Provision for income taxes | 3,675 | 3,390 | ||||||
| Total other (income) expense | 445 | 76 | ||||||
| Depreciation and amortization | 2,902 | 2,003 | ||||||
| EBITDA | $ | 13,275 | $ | 11,019 |
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 third quarter
conference call will be available online at www.earnings.com
on November 4, 2009, 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 Third Quarter 2009 Results
RESEARCH CORPORATION
Consolidated Statements of Operations
thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue | $ | 13,517 | $ | 13,469 | $ | 43,850 | $ | 38,824 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct expenses | 5,446 | 6,598 | 19,027 | 17,845 | ||||||||||||
| Selling, general and administrative | 3,872 | 3,053 | 11,548 | 9,960 | ||||||||||||
| Depreciation and amortization | 901 | 661 | 2,902 | 2,003 | ||||||||||||
| Total operating expenses | 10,219 | 10,312 | 33,477 | 29,808 | ||||||||||||
| Operating income | 3,298 | 3,157 | 10,373 | 9,016 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | -- | 6 | 1 | 33 | ||||||||||||
| Interest expense | (91 | ) | (21 | ) | (314 | ) | (118 | ) | ||||||||
| Other, net | (75 | ) | 29 | (132 | ) | 9 | ||||||||||
| Total other income (expense) | (166 | ) | 14 | (445 | ) | (76 | ) | |||||||||
| Income before income taxes | 3,132 | 3,171 | 9,928 | 8,940 | ||||||||||||
| Provision for income taxes | 1,138 | 1,205 | 3,675 | 3,390 | ||||||||||||
| Net income | $ | 1,994 | $ | 1,966 | $ | 6,253 | $ | 5,550 | ||||||||
| Net income per share, basic | $ | 0.30 | $ | 0.30 | $ | 0.94 | $ | 0.83 | ||||||||
| Net income per share, diluted | $ | 0.30 | $ | 0.29 | $ | 0.93 | $ | 0.81 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 6,637 | 6,644 | 6,636 | 6,699 | ||||||||||||
| Diluted | 6,735 | 6,803 | 6,723 | 6,845 |
Announces Third Quarter 2009 Results
RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
| Sep. 30, | Dec. 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 1,460 | $ | 1,109 | ||||
| Accounts receivable, net | 8,385 | 6,531 | ||||||
| Income taxes recoverable | 1,109 | 574 | ||||||
| Other current assets | 2,370 | 2,225 | ||||||
| Total current assets | 13,324 | 10,439 | ||||||
| Net property and equipment | 14,233 | 13,747 | ||||||
| Other, net | 46,849 | 47,959 | ||||||
| Total Assets | $ | 74,406 | $ | 72,145 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,851 | $ | 2,208 | ||||
| Deferred revenue | 14,538 | 12,926 | ||||||
| Accrued compensation | 2,086 | 1,375 | ||||||
| Notes payable | 765 | 4,581 | ||||||
| Total current liabilities | 19,240 | 21,090 | ||||||
| Non-current liabilities | 12,595 | 12,457 | ||||||
| Total Liabilities | 31,835 | 33,547 | ||||||
| Shareholders' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,016,021 in 2009 and 8,019,922 in 2008; outstanding 6,660,298 in 2009 and 6,667,517 in 2008 | 8 | 8 | ||||||
| Additional paid-in capital | 27,635 | 27,217 | ||||||
| Retained earnings | 36,734 | 33,677 | ||||||
| Accumulated other comprehensive income (loss) | 571 | (6 | ) | |||||
| Treasury stock | (22,377 | ) | (22,298 | ) | ||||
| Total shareholders' equity | 42,571 | 38,598 | ||||||
| Total liabilities and shareholders' equity | $ | 74,406 | $ | 72,145 |