Full Press Release Details
Chief Financial Officer
RESEARCH CORPORATION ANNOUNCES
QUARTER AND YEAR-END 2010 RESULTS
Announces 2011 Earnings Per Share Guidance of $1.65
of Directors Increase Quarterly Dividend to $0.22 Per Share
Nebraska (February 8, 2011) - National Research Corporation (NASDAQ:NRCI) today
announced results for the fourth quarter and year-end 2010.
on the fourth quarter results, Michael D. Hays, president and chief executive
officer of National Research Corporation, said, "We accelerated our investment
in growth opportunities during the fourth quarter in light of favorable
conditions for Illuminate and our new subscription-based offerings from NRC
Picker, The Governance Institute and My InnerView. We also continued
sales force expansion. The returns from these investments are
continuing to materialize in the form of increased sales and sustainable points
of differentiation in the marketplace."
Announces 2010 Fourth Quarter and Year End Results
for the quarter ended December 31, 2010, increased 15% to $15.9 million,
compared to $13.8 million for the same period in 2009. Net income for
the fourth quarter was $1.6 million or $0.24 basic and $0.23 diluted earnings
per share, compared with net income of $2.2 million or $0.34 basic and $0.33
diluted earnings per share, in the prior year period.
Revenue for the year ended December 31,
2010, was $63.4 million, compared to $57.7 million for the same period in 2009,
an increase of 10%. Net income for the years ended December 31, 2010
and 2009, was $8.5 million or $1.28 basic and $1.26 diluted earnings per
In closing, Patrick E. Beans, chief
financial officer of National Research Corporation, said, "The Company clearly
diverted from historical patterns by reinvesting all its incremental earnings
for the full year 2010 over 2009. To provide visibility related to
the anticipated return on these investments, today we are announcing earnings
guidance of $1.65 per dilutive share for the year ending December 31,
The Company's Board of Directors has
declared a regular quarterly cash dividend of $0.22 (twenty-two cents) per
share, an increase of 16% over the prior quarter, payable March 31, 2011, to
shareholders of record as of the close of business on March 4,
listen-only simulcast of National Research Corporation's 2010 fourth quarter and
year-end conference call will be available online at www.earnings.com on
February 9, 2011, beginning at 11:00 a.m. Eastern time. The online
replay will follow approximately one hour later and continue for 30
National 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 2010 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, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 15,883 | $ | 13,842 | $ | 63,398 | $ | 57,692 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct expenses | 6,265 | 5,386 | 24,635 | 24,148 | ||||||||||||
| Selling, general and administrative | 5,937 | 4,204 | 20,202 | 16,016 | ||||||||||||
| Depreciation and amortization | 1,322 | 928 | 4,704 | 3,831 | ||||||||||||
| Total operating expenses | 13,524 | 10,518 | 49,541 | 43,995 | ||||||||||||
| Operating income | 2,359 | 3,324 | 13,857 | 13,697 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 1 | -- | 6 | 2 | ||||||||||||
| Interest expense | (163 | ) | (90 | ) | (491 | ) | (405 | ) | ||||||||
| Other, net | (39 | ) | (45 | ) | (57 | ) | (177 | ) | ||||||||
| Total other income (expense) | (201 | ) | (135 | ) | (542 | ) | (580 | ) | ||||||||
| Income before income taxes | 2,158 | 3,189 | 13,315 | 13,117 | ||||||||||||
| Provision for income taxes | 590 | 951 | 4,816 | 4,626 | ||||||||||||
| Net income | $ | 1,568 | $ | 2,238 | $ | 8,499 | $ | 8,491 | ||||||||
| Net income per share, basic | $ | 0.24 | $ | 0.34 | $ | 1.28 | $ | 1.28 | ||||||||
| Net income per share, diluted | $ | 0.23 | $ | 0.33 | $ | 1.26 | $ | 1.26 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 6,644 | 6,639 | 6,637 | 6,637 | ||||||||||||
| Diluted | 6,780 | 6,725 | 6,736 | 6,723 |
Announces 2010 Fourth Quarter and Year End Results
RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
| Dec. 31, | Dec. 31, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 3,519 | $ | 2,512 | ||||
| Accounts receivable, net | 9,172 | 5,214 | ||||||
| Income taxes recoverable | 1,277 | 803 | ||||||
| Other current assets | 3,373 | 3,135 | ||||||
| Total current assets | 17,341 | 11,664 | ||||||
| Net property and equipment | 14,482 | 13,975 | ||||||
| Other, net | 63,793 | 46,860 | ||||||
| Total Assets | $ | 95,616 | $ | 72,499 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 2,307 | $ | 1,446 | ||||
| Deferred revenue | 17,701 | 11,907 | ||||||
| Accrued compensation | 4,161 | 1,926 | ||||||
| Notes payable | 1,827 | 816 | ||||||
| Total current liabilities | 25,996 | 16,095 | ||||||
| Non-current liabilities | 21,036 | 12,233 | ||||||
| Total Liabilities | 47,032 | 28,328 | ||||||
| Shareholders' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,044,855 in 2010 and 8,018,044 in 2009; outstanding 6,668,574 in 2010 and 6,662,111 in 2009 | 8 | 8 | ||||||
| Additional paid-in capital | 28,970 | 27,871 | ||||||
| Retained earnings | 41,343 | 37,905 | ||||||
| Accumulated other comprehensive income (loss) | 1,108 | 769 | ||||||
| Treasury stock | (22,845 | ) | (22,382 | ) | ||||
| Total shareholders' equity | 48,584 | 44,171 | ||||||
| Total liabilities and shareholders' equity | $ | 95,616 | $ | 72,499 |