National Research Corporation Announces First Quarter 2017 Results
03 May 2017 - 7:00AM
National Research Corporation (NASDAQ:NRCIA) and (NASDAQ:NRCIB)
today announced results for the first quarter of 2017.
- Net New Sales $4.9 million
- Total Contract Value $119.6 million
- Revenue up 9% to $30.3 million
- Net Income up 18% to $6.5 million
Remarking on Company performance, Michael D. Hays, chief
executive officer of National Research Corporation said, “Our first
quarter performance was mixed. Revenue and net income growth
were positive while we fell short on our target for Net New
Sales.”
Revenue for the quarter ended March 31, 2017, was $30.3 million,
compared to $27.9 million for the same quarter in 2016. Net income
for the quarter ended March 31, 2017, was $6.5 million, compared to
$5.5 million for the quarter ended March 31, 2016. Diluted earnings
per share increased to $0.15 for Class A shares and $0.91 for Class
B shares for the quarter ended March 31 2017, from diluted earnings
per share of $0.13 for Class A shares and $0.77 for Class B shares
for the quarter ended March 31, 2016. Combined diluted earnings per
share (a non-GAAP measure) increased to $0.26 for the quarter ended
March 31, 2017, from $0.22 for the first quarter of 2016.
Regarding first quarter performance, Kevin Karas, chief
financial officer of National Research Corporation, said, “Both
record revenue and net income results were achieved in the first
quarter of 2017 as we were able to continue our positive revenue
growth trend and leverage that growth to expand operating
margin.”
A listen-only simulcast of National Research Corporation’s 2017
first quarter conference call will be available online at
http://edge.media-server.com/m/p/e8x7g72o on May 3, 2017,
beginning at 11:00 a.m. Eastern time. The online replay will follow
approximately one hour later and continue for 30 days.
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.
The information discussed within this release includes financial
results and projections that are in accordance with accounting
principles generally accepted in the United States (GAAP). In
addition, certain non-GAAP financial measures have been provided
that calculate combined earnings per share based on combined Class
A and Class B shares and share equivalents outstanding,
respectively. The non-GAAP measures should be read in conjunction
with the corresponding GAAP measures and should be considered in
addition to, and not as an alternative or substitute for, the
measures prepared in accordance with GAAP. Please note that the
Company’s non-GAAP measures may be different than those used by
other companies. The additional non-GAAP financial
information the Company presents should be considered in
conjunction with, and not as a substitute for, the Company’s
financial information presented in accordance with GAAP. The
non-GAAP financial measures are provided in an effort to provide
information that investors may deem relevant to evaluate results
from the Company's core business operations and to compare the
Company's performance with prior periods. The Company uses
both GAAP and these non-GAAP financial measures for evaluating
comparable financial performance against prior periods.
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.
|
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARYUnaudited Condensed Consolidated
Statements of Income(In thousands, except per share
data) |
|
|
Three months endedMarch 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
30,276 |
|
|
$ |
27,870 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Direct |
|
12,500 |
|
|
|
11,539 |
|
Selling,
general and administrative |
|
6,686 |
|
|
|
7,357 |
|
Depreciation and amortization |
|
1,106 |
|
|
|
968 |
|
Total
operating expenses |
|
20,292 |
|
|
|
19,864 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
9,984 |
|
|
|
8,006 |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
Interest
income |
|
14 |
|
|
|
11 |
|
Interest
expense |
|
(27 |
) |
|
|
(85 |
) |
Other,
net |
|
9 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
Total
other income (expense) |
|
(4 |
) |
|
|
-- |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
9,980 |
|
|
|
8,006 |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
3,459 |
|
|
|
2,500 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
6,521 |
|
|
$ |
5,506 |
|
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock: |
|
|
|
|
|
|
|
Basic
Earnings Per Share: |
|
|
|
|
|
|
|
Class
A |
$ |
0.15 |
|
|
$ |
0.13 |
|
Class
B |
$ |
0.93 |
|
|
$ |
0.79 |
|
Diluted
Earnings Per Share: |
|
|
|
|
|
|
|
Class
A |
$ |
0.15 |
|
|
$ |
0.13 |
|
Class
B |
$ |
0.91 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
Weighted average shares
and share equivalents outstanding |
|
|
|
|
|
|
|
Class A -
Basic |
|
20,737 |
|
|
|
20,710 |
|
Class B -
Basic |
|
3,513 |
|
|
|
3,489 |
|
Class A -
Diluted |
|
21,245 |
|
|
|
21,012 |
|
Class B -
Diluted |
|
3,576 |
|
|
|
3,549 |
|
|
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARY |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(Dollars in thousands, except per share amounts and par
value) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31, |
|
Dec. 31, |
|
|
2017 |
|
2016 |
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
34,664 |
|
|
$ |
33,021 |
|
Accounts
receivable, net |
|
|
13,524 |
|
|
|
10,864 |
|
Income
taxes receivable |
|
|
24 |
|
|
|
14 |
|
Other
current assets |
|
|
4,171 |
|
|
|
3,166 |
|
Total
Current Assets |
|
|
52,383 |
|
|
|
47,065 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
12,133 |
|
|
|
11,806 |
|
Goodwill |
|
|
57,881 |
|
|
|
57,861 |
|
Other, net |
|
|
3,662 |
|
|
|
3,892 |
|
Total
Assets |
|
$ |
126,059 |
|
|
$ |
120,624 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
3,576 |
|
|
$ |
3,916 |
|
Deferred
revenue |
|
|
17,189 |
|
|
|
15,497 |
|
Accrued
compensation |
|
|
3,306 |
|
|
|
4,543 |
|
Dividends
payable |
|
|
4,218 |
|
|
|
4,213 |
|
Income
taxes payable |
|
|
3,563 |
|
|
|
662 |
|
Notes
payable |
|
|
2,499 |
|
|
|
2,683 |
|
Total
Current Liabilities |
|
|
34,351 |
|
|
|
31,514 |
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities |
|
|
6,136 |
|
|
|
6,304 |
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
40,487 |
|
|
|
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 25,753,828 in 2017 and 25,656,760 in 2016, outstanding
20,916,570 in 2017 and 20,891,069 in 2016 |
|
|
26 |
|
|
|
26 |
|
Class B
Common stock, $0.001 par value; authorized 80,000,000 shares,
issued 4,320,875 in 2017 and 4,308,875 in 2016, outstanding
3,543,463 in 2017 and 3,539,931 in 2016 |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
48,787 |
|
|
|
46,725 |
|
Retained
earnings |
|
|
73,810 |
|
|
|
71,507 |
|
Accumulated other comprehensive loss |
|
|
(2,508 |
) |
|
|
(2,626 |
) |
Treasury
stock |
|
|
(34,547 |
) |
|
|
(32,830 |
) |
Total
Shareholders’ Equity |
|
|
85,572 |
|
|
|
82,806 |
|
Total
Liabilities and Shareholders’ Equity |
|
$ |
126,059 |
|
|
$ |
120,624 |
|
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARYUnaudited Non-GAAP Combined Earnings Per
Share Schedule(In thousands, except per share data) |
|
|
|
Three months endedMarch 31, |
|
|
2017 |
|
2016 |
Combined Earnings Per
Share (1) |
|
|
|
|
|
|
Basic
Earnings Per Share |
|
$ |
0.27 |
|
$ |
0.23 |
Diluted
Earnings Per Share |
|
$ |
0.26 |
|
$ |
0.22 |
Combined weighted
average shares and share equivalents outstanding (2) |
|
|
|
|
|
|
Combined
- Basic |
|
|
24,250 |
|
|
24,198 |
Combined
- Diluted |
|
|
24,821 |
|
|
24,561 |
(1) |
Combined net
income attributable to Class A and Class B common shareholders
divided by combined weighted average shares and share equivalents
outstanding. |
(2) |
Represents
the sum of the Class A and Class B weighted average shares and
share equivalents outstanding reported in accordance with
GAAP. |
Contact:
Kevin R. Karas
Chief Financial Officer
402-475-2525
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