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

SECOND QUARTER 2016 RESULTS


 

LINCOLN, Nebraska (August 2, 2016) — National Research Corporation (NASDAQ: NRCIA and NRCIB) today announced results for the second quarter of 2016.

 

 

Net New Sales $5.8 million

 

Total Contract Value $114.0 million

 

Revenue up 7% to $26.1 million

 

Net Income of $4.6 million, up 12%

 

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “Our Voice of the Customer platform is bringing to life for our partner organizations a variety of enterprise-wide use cases which enhance customer loyalty. These innovative solutions are distancing National Research from other more traditional offerings and we will continue to accelerate investments.”

 

Revenue for the quarter ended June 30, 2016, was $26.1 million, compared to $24.5 million for the same quarter in 2015. Net income for the quarter ended June 30, 2016, was $4.6 million, compared to $4.1 million for the quarter ended June 30, 2015. Diluted earnings per share increased to $0.11 for Class A shares and $0.64 for Class B shares for the quarter ended June 30 2016, from $0.10 for Class A shares and $0.57 for Class B shares for the quarter ended June 30, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.18 for the quarter ended June 30, 2016, from $0.16 for the second quarter 2015.     

 

Regarding second quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We are encouraged by the continued trends both in the second quarter and on a year-to-date basis of increased revenue growth rates along with leveraging of revenue growth to expand our operating income margin.”

 

 
 

 

 

NRC Announces Second Quarter 2016 Results

Page 2

August 2, 2016

 

 

A listen-only simulcast of National Research Corporation’s 2016 second quarter conference call will be available online at http://edge.media-server.com/m/p/ztkgrv4d on August 3, 2016, 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 35 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.

 

 

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.

 

 

 

 

-END-

 
 

 

 

NRC Announces Second Quarter 2016 Results

Page 3

August 2, 2016

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

   

Three months ended
June 30,

   

Six months ended
June 30,

 
   

2016

   

2015

   

2016

   

2015

 
                                 

Revenue

  $ 26,114     $ 24,464     $ 53,984     $ 50,734  
                                 

Operating expenses:

                               

Direct expenses

    10,734       10,440       22,273       22,239  

Selling, general and administrative

    7,270       6,636       14,627       14,263  

Depreciation and amortization

    1,092       1,024       2,060       2,039  

Total operating expenses

    19,096       18,100       38,960       38,541  
                                 

Operating income

    7,018       6,364       15,024       12,193  
                                 

Other income (expense):

                               

Interest income

    11       16       22       32  

Interest expense

    (36 )     (57 )     (121 )     (120 )

Other, net

    43       2       118       2  
                                 

Total other income (expense)

    18       (39 )     19       (86 )
                                 

Income before income taxes

    7,036       6,325       15,043       12,107  
                                 

Provision for income taxes

    2,478       2,261       4,978       4,563  
                                 

Net income

  $ 4,558     $ 4,064     $ 10,065     $ 7,544  
                                 

Earnings Per Share of Common Stock:

                               

Basic Earnings Per Share:

                               

Class A

  $ 0.11     $ 0.10     $ 0.24     $ 0.18  

Class B

  $ 0.65     $ 0.58     $ 1.44     $ 1.08  

Diluted Earnings Per Share:

                               

Class A

  $ 0.11     $ 0.10     $ 0.24     $ 0.18  

Class B

  $ 0.64     $ 0.57     $ 1.41     $ 1.07  
                                 

Weighted average shares and share equivalents outstanding

                               

Class A - basic

    20,711       20,790       20,711       20,791  

Class B - basic

    3,508       3,478       3,498       3,478  

Class A - diluted

    20,992       21,029       21,002       21,031  

Class B - diluted

    3,565       3,522       3,557       3,523  

 

 

-END-

 
 

 

 

NRC Announces Second Quarter 2016 Results

Page 4

August 2, 2016

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts and par value)

 

   

June 30,

    Dec. 31,  
    2016    

2015

 
ASSETS   

Current Assets:

               

Cash and cash equivalents

  $ 27,192     $ 42,145  
Accounts receivable, net     11,075       9,808  
Income taxes receivable     728       157  
Other current assets     3,746       2,951  

Total Current Assets

    42,741       55,061  
                 

Property and equipment, net

    11,843       11,125  

Goodwill

    57,946       57,792  

Other, net

    3,969       4,071  

Total Assets

  $ 116,499     $ 128,049  
                 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 
                 

Current Liabilities:

               

Accounts payable and accrued expenses

  $ 3,535     $ 3,394  

Deferred revenue

    16,100       14,843  

Accrued compensation

    3,823       4,391  

Dividends payable

    3,371       18,440  

Income taxes payable

    -       701  

Notes payable

    2,441       2,402  

Total Current Liabilities

    29,270       44,171  
                 

Non-Current Liabilities

    7,571       9,656  
                 
Total Liabilities     36,841       53,827  
                 

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 25,646,624 in 2016 and 25,592,812 in 2015, outstanding 20,894,893 in 2016 and 20,848,168 in 2015

    26       26  

Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,307,186 in 2016 and 4,271,413 in 2015, outstanding 3,540,521 in 2016 and 3,510,150 in 2015

    4       4  

Additional paid-in capital

    45,645       44,103  

Retained earnings

    68,638       65,313  

Accumulated other comprehensive loss

    (2,117 )     (2,995 )

Treasury stock

    (32,538 )     (32,229 )
Total Shareholders’ Equity     79,658       74,222  

Total Liabilities and Shareholders’ Equity

  $ 116,499     $ 128,049  

 

 

 

-END-

 
 

 

 

NRC Announces Second Quarter 2016 Results

Page 5

August 2, 2016

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Non-GAAP Combined Earnings Per Share Schedule

(In thousands, except per share data)

  

   

Three months ended
June 30,

   

Six months ended
June 30,

 
   

2016

   

2015

   

2016

   

2015

 
                                 

Combined Earnings Per Share

                               

Basic Earnings Per Share

  $ 0.19     $ 0.17     $ 0.41     $ 0.31  

Diluted Earnings Per Share

  $ 0.18     $ 0.16     $ 0.41     $ 0.31  
                                 

Combined weighted average shares and share equivalents outstanding

                               

Combined - Basic

    24,220       24,268       24,209       24,269  

Combined - Diluted

    24,557       24,551       24,559       24,554  

 

 

 

-END-