Full Press Release Details
Chief Financial Officer
RESEARCH CORPORATION ANNOUNCES
QUARTER 2010 RESULTS
Contract Value Reaches $75 Million
Net New Contracts Set Record
Nebraska (November 2, 2010) - National Research Corporation (NASDAQ:NRCI) today
announced results for the third quarter 2010.
Commenting on the third quarter
results, Michael D. Hays, president and chief executive officer of National
Research Corporation, said, "I'm delighted that net new contracts for the third
quarter set a new company record. In fact, the $9.2 million of net
new contracts signed in the past two quarters exceeds all of
2009. NRC Picker sales performance contributed materially to the
Company's overall sales record and also helped drive third quarter revenue
growth for that business unit. In the quarter, we experienced
additional traction from our continued heavy investment in Illuminate , although
the investment contributed to lower net income. As well, on the new
product front, The Governance Institute finalized a new offering which will
launch in the fourth quarter. Integration of OCS, which we acquired
in the third quarter, is going well and is adding meaningful depth in leadership
Revenue for the quarter ended September
30, 2010, was $16.0 million, compared to $13.5 million for the same quarter in
2009. Net income for the quarter ended September 30, 2010, was $2.1
million, or $.32 per basic and diluted share, compared to $2.0 million for the
third quarter 2009, or $.30 per basic and diluted share.
| NRCI Announces Third Quarter 2010 Results | |||||||||||||
| Page 2 | |||||||||||||
| November 2, 2010 |
Revenue for the first nine months of
2010 increased 8% to $47.5 million, compared to $43.9 million for the same
period in 2009. Net income for the first nine months of 2010
increased 11% over the same period in 2009, to $6.9 million, resulting in $1.04
basic and $1.03 diluted earnings per share, also up 11% over the same period in
The Company also announced that its
Board of Directors has declared a regular quarterly cash dividend of $0.19
(nineteen cents) per share payable December 30, 2010, to shareholders of record
as of the close of business on December 3, 2010.
In closing, Patrick E. Beans, chief
financial officer of National Research Corporation, said, "Total contract value
has increased $13.7 million in the past nine months to $75.1 million, up 22%
from year-end 2009, driven by outstanding sales performance and the acquisition
of OCS. Net income for the third quarter was 13% of revenue, up from
12% in second quarter. We anticipate net income back in the 15% plus
range as we monetize investments being made in new products and finalize the
listen-only simulcast of National Research Corporation's 2010 third quarter
conference call will be available online at www.earnings.com
on November 3, 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.
| NRCI Announces Third Quarter 2010 Results | |||||||||||||
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| November 2, 2010 |
| NATIONAL RESEARCH CORPORATION | ||||||||||||||||
| Unaudited Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 16,006 | $ | 13,517 | $ | 47,515 | $ | 43,850 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct expenses | 6,038 | 5,521 | 18,370 | 18,762 | ||||||||||||
| Selling, general and administrative | 5,250 | 3,797 | 14,265 | 11,813 | ||||||||||||
| Depreciation and amortization | 1,225 | 901 | 3,382 | 2,902 | ||||||||||||
| Total operating expenses | 12,513 | 10,219 | 36,017 | 33,477 | ||||||||||||
| Operating income | 3,493 | 3,298 | 11,498 | 10,373 | ||||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest income | 1 | - | 5 | 1 | ||||||||||||
| Interest expense | (137 | ) | (91 | ) | (328 | ) | (314 | ) | ||||||||
| Other, net | (24 | ) | (75 | ) | (18 | ) | (132 | ) | ||||||||
| Total other income (expense), net | (160 | ) | (166 | ) | (341 | ) | (445 | ) | ||||||||
| Income before income taxes | 3,333 | 3,132 | 11,157 | 9,928 | ||||||||||||
| Provision for income taxes | 1,191 | 1,138 | 4,226 | 3,675 | ||||||||||||
| Net income | $ | 2,142 | $ | 1,994 | $ | 6,931 | $ | 6,253 | ||||||||
| Net income per share, basic | $ | 0.32 | $ | 0.30 | $ | 1.04 | $ | 0.94 | ||||||||
| Net income per share, diluted | $ | 0.32 | $ | 0.30 | $ | 1.03 | $ | 0.93 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 6,632 | 6,637 | 6,635 | 6,636 | ||||||||||||
| Diluted | 6,727 | 6,735 | 6,725 | 6,723 |
| NRCI Announces Third Quarter 2010 Results | ||||||
| Page 4 | ||||||
| November 2, 2010 |
| NATIONAL RESEARCH CORPORATION | ||||||||
| Unaudited Consolidated Condensed Balance Sheets | ||||||||
| (Dollars in thousands) | ||||||||
| Sep. 30, | Dec. 31, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 3,195 | $ | 2,512 | ||||
| Accounts receivable, net | 9,779 | 5,214 | ||||||
| Income taxes recoverable | 447 | 803 | ||||||
| Other current assets | 2,944 | 3,135 | ||||||
| Total current assets | 16,365 | 11,664 | ||||||
| Net property and equipment | 14,372 | 13,975 | ||||||
| Other, net | 62,663 | 46,860 | ||||||
| Total Assets | $ | 93,400 | $ | 72,499 | ||||
| LIABILITIES AND SHAREHOLDERS ' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 2,322 | $ | 1,446 | ||||
| Deferred revenue | 18,732 | 11,907 | ||||||
| Accrued compensation | 2,400 | 1,926 | ||||||
| Notes payable | 1,809 | 816 | ||||||
| Total current liabilities | 25,263 | 16,095 | ||||||
| Non-current liabilities | 20,455 | 12,233 | ||||||
| Total Liabilities | 45,718 | 28,328 | ||||||
| Shareholders ' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; | ||||||||
| issued 8,035,428 in 2010 and 8,018,044 in 2009; | ||||||||
| outstanding 6,659,147 in 2010 and 6,662,111 in 2009 | 8 | 8 | ||||||
| Additional paid-in capital | 28,583 | 27,871 | ||||||
| Retained earnings | 41,042 | 37,905 | ||||||
| Accumulated other comprehensive income | 894 | 769 | ||||||
| Treasury stock | (22,845 | ) | (22,382 | ) | ||||
| Total shareholders ' equity | 47,682 | 44,171 | ||||||
| Total liabilities and shareholders ' equity | $ | 93,400 | $ | 72,499 |