EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1
 
 1245 “Q” Street
Lincoln, NE  68508
Phone:  402-475-2525
Fax:  402-475-9061
 
 
Contact:
Kevin R. Karas
Chief Financial Officer
402-475-2525
     

NATIONAL RESEARCH CORPORATION ANNOUNCES
THIRD QUARTER 2012 RESULTS

Organic Growth Drives Solid Top Line and Bottom Line Performance

LINCOLN, Nebraska (November 6, 2012) — National Research Corporation (NASDAQ:NRCI) today announced results for the third quarter 2012.

 
·
Net new sales of $4.7 million
 
·
Revenue up 15% to $21.4 million
 
·
Operating income of $5.6 million, up 35%
 
·
Net income up 35% to $3.6 million
 
·
Diluted earnings per share of $0.51, up 31%

Commenting on the company’s quarterly performance, Michael D. Hays, chief executive officer of National Research Corporation, said, “I’m pleased to report that expanded relationships with current clients, equally matched by signing new clients in the third quarter, continues the all-organic top-line growth trend we have been experiencing from the beginning of the year.”
 
Revenue for the quarter ended September 30, 2012, was $21.4 million, compared to $18.5 million for the same quarter in 2011.  Net income for the quarter ended September 30, 2012, was $3.6 million, or $0.53 per basic share and $0.51 per diluted share, compared to $2.6 million for the second quarter 2011, or $0.40 per basic share and $0.39 per diluted share.

Kevin Karas, chief financial officer of National Research Corporation, said, “Thirty-five percent growth in net income on 15% revenue growth in the quarter, clearly illustrates the attractiveness of the company’s business model.  Our total contract value, which was $91.7 million as of September 30, 2012, continues to build and additional opportunities for leverage are being realized.”

 
 

 
 
NRCI Announces Third Quarter 2012 Results
Page 2
November 6, 2012
 
In closing, the company’s Board of Directors announced it has declared a regular quarterly dividend of twenty-six cents ($0.26) per share and a special one-time dividend of one dollar and fifty cents ($1.50) per share both payable Tuesday, December 18, 2012, to shareholders of record as of the close of business on Friday, November 16, 2012.

A listen-only simulcast of National Research Corporation’s 2012 third quarter conference call will be available online at www.earnings.com on November 7, 2012, 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 31 years, National Research Corporation has been at the forefront of patient-centered care, helping healthcare providers measure and improve quality and services through analytics that offer a rich understanding of customers’ experiences, preferences, risks and behaviors across the healthcare continuum.

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.
 
-END-
 
 

 
 
NRCI Announces Third Quarter 2012 Results
Page 3
November 6, 2012
 
NATIONAL RESEARCH CORPORATION
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
    2012     2011     2012     2011  
                         
Revenue
  $ 21,386     $ 18,549     $ 64,425     $ 56,655  
                                 
Operating expenses:
                               
Direct
  $ 8,769       7,471       26,333       21,489  
Selling, general and administrative
    5,821       5,572       17,541       17,651  
Depreciation and amortization
    1,149       1,312       3,606       3,790  
Total operating expenses
    15,739       14,355       47,480       42,930  
                                 
Operating income
    5,647       4,194       16,945       13,725  
                                 
Other income (expense), net:
                               
Interest income
    8       4       20       8  
Interest expense
    (134 )     (155 )     (416 )     (480 )
Other, net
    (29 )     74       (16 )     55  
                                 
Total other expense, net
    (155 )     (77 )     (412 )     (417 )
                                 
Income before income taxes
    5,492       4,117       16,533       13,308  
Provision for income taxes
    1,915       1,470       5,168       4,876  
                                 
Net income
  $ 3,577     $ 2,647     $ 11,365     $ 8,432  
Net income per share, basic
  $ 0.53     $ 0.40     $ 1.68     $ 1.26  
Net income per share, diluted
  $ 0.51     $ 0.39     $ 1.64     $ 1.23  
                                 
Weighted average shares outstanding:
                               
Basic
    6,791      
6,679
      6,754      
6,666
 
Diluted
    6,961      
6,850
      6,941      
  6,845
 
 
-END-
 
 

 
 
NRCI Announces Third Quarter 2012 Results
Page 4
November 6, 2012
 
NATIONAL RESEARCH CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands)
 
   
Sep. 30,
2012
   
Dec. 31,
2011
 
 ASSETS            
Current Assets:
           
Cash and cash equivalents
  $ 15,026     $ 8,082  
Accounts receivable, net
    14,206       11,187  
Income taxes receivable
    90       --  
Other current assets
    3,129       2,868  
Total current assets
    32,451       22,137  
                 
Net property and equipment
    12,907       13,613  
Goodwill
    57,839       57,730  
Other, net
    6,232       7,196  
                 
Total Assets
  $ 109,429     $ 100,676  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
                 
Current Liabilities:
               
Accounts payable and accrued expenses
  $ 3,305     $ 2,302  
Deferred revenue
    17,527       16,500  
Accrued compensation
    3,779       3,591  
Income taxes payable
    --       145  
Notes payable
    13,076       1,861  
Total current liabilities
    37,687       24,399  
                 
Non-current liabilities
    7,673       20,723  
                 
Total Liabilities
    45,360       45,122  
                 
Shareholders’ Equity:
               
Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,278,491 in 2012 and 8,117,849 in 2011; outstanding 6,824,355 in 2012 and 6,724,280 in 2011
    8       8  
Additional paid-in capital
    35,880       31,080  
Retained earnings
    53,061       46,995  
Accumulated other comprehensive income
    1,267       907  
Treasury stock
    (26,147 )     (23,436 )
Total shareholders’ equity
    64,069       55,554  
Total liabilities and shareholders’ equity
  $ 109,429     $ 100,676  
 
 
 
 
 
-END-