EX-99.1 2 ex_99846.htm EXHIBIT 99.1 ex_99846.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 2017 RESULTS

 


 

LINCOLN, Nebraska (November 7, 2017) — National Research Corporation (NASDAQ: NRCIA and NRCIB) today announced results for the third quarter of 2017.

 

●   Net New Sales $5.4 million

●   Total Contract Value $123.6 million

●   Revenue up 7% to $29.0 million

●   Net Income of $4.2 million

 

Revenue for the third quarter ended September 30, 2017, was $29.0 million, compared to
$27.0 million for the same quarter in 2016. Net income for the quarter ended September 30, 2017, was $4.2 million, compared to $4.7 million for the quarter ended September 30, 2016. Diluted earnings per share decreased to $0.09 for Class A shares and $0.57 for Class B shares for the quarter ended September 30 2017, from $0.11 for Class A shares and $0.66 for Class B shares for the quarter ended September 30, 2016.

 

Regarding third quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Third quarter net new sales increased by 5% over the same period last year as we continued to add new clients and increase contract value with existing clients during the quarter. Our increase in operating income from revenue growth was offset by approximately $975,000 in expenses for our proposed recapitalization.”

 

A listen-only simulcast of National Research Corporation’s 2017 third quarter conference call will be available online at https://edge.media-server.com/m6/p/jfk3domr on November 8, 2017, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

 

 

 

 

NRC Announces Third Quarter 2017 Results

Page 2

November 7, 2017

 

 

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.

 

 

 

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 Third Quarter 2017 Results

Page 3

November 7, 2017

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

   

Three months ended
September 30,

   

Nine months ended
September 30,

 
    2017     2016     2017     2016  
                                 

Revenue

  $ 28,951     $ 27,032     $ 87,661     $ 81,016  
                                 

Operating expenses:

                               

Direct expenses

    12,267       11,468       36,706       33,741  

Selling, general and administrative

    8,430       7,139       22,021       21,766  

Depreciation and amortization

    1,132       1,086       3,376       3,146  

Total operating expenses

    21,829       19,693       62,103       58,653  
                                 

Operating income

    7,122       7,339       25,558       22,363  
                                 

Other income (expense):

                               

Interest income

    29       12       58       34  

Interest expense

    (18 )     (38 )     (68 )     (158 )

Other, net

    40       (4 )     76       112  
                                 

Total other income (expense)

    51       (30 )     66       (12 )
                                 

Income before income taxes

    7,173       7,309       25,624       22,351  
                                 

Provision for income taxes

    3,020       2,580       9,198       7,558  
                                 

Net income

  $ 4,153     $ 4,729     $ 16,426     $ 14,793  
                                 

Earnings Per Share of Common Stock:

                               

Basic Earnings Per Share:

                               

Class A

  $ 0.10     $ 0.11     $ 0.39     $ 0.35  

Class B

  $ 0.59     $ 0.67     $ 2.34     $ 2.11  

Diluted Earnings Per Share:

                               

Class A

  $ 0.09     $ 0.11     $ 0.38     $ 0.35  

Class B

  $ 0.57     $ 0.66     $ 2.28     $ 2.08  
                                 

Weighted average shares and share equivalents outstanding

                               

Class A - basic

    20,788       20,716       20,759       20,712  

Class B - basic

    3,514       3,511       3,514       3,503  

Class A - diluted

    21,740       21,068       21,537       21,017  

Class B - diluted

    3,620       3,556       3,595       3,557  

 

-END-

 

 

 

 

NRC Announces Third Quarter 2017 Results

Page 4

November 7, 2017

   

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

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

 

   

Sep. 30,

   

Dec. 31,

 
   

2017

   

2016

 

ASSETS

               

Current Assets:

               

Cash and cash equivalents

  $ 35,750     $ 33,021  

Accounts receivable, net

    13,588       10,864  

Income taxes receivable

    61       14  

Other current assets

    4,423       3,166  

Total Current Assets

    53,822       47,065  
                 

Property and equipment, net

    12,089       11,806  

Goodwill

    58,036       57,861  

Other, net

    4,793       3,892  

Total Assets

  $ 128,740     $ 120,624  
                 

LIABILITIES AND SHAREHOLDERS’ EQUITY

               
                 

Current Liabilities:

               

Accounts payable and accrued expenses

  $ 3,757     $ 3,916  

Deferred revenue

    18,486       15,497  

Accrued compensation

    4,151       4,543  

Dividends payable

    4,218       4,213  

Income taxes payable

    1,862       662  

Notes payable

    1,693       2,683  

Total Current Liabilities

    34,167       31,514  
                 

Non-Current Liabilities

    5,729       6,304  
                 

Total Liabilities

    39,896       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 25,799,230 in 2017 and 25,656,760 in 2016, outstanding 20,942,785 in 2017 and 20,891,069 in 2016

    26       26  

Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,317,656 in 2017 and 4,308,875 in 2016, outstanding 3,540,244 in 2017 and 3,539,931 in 2016

    4       4  

Additional paid-in capital

    50,121       46,725  

Retained earnings

    75,278       71,507  

Accumulated other comprehensive loss

    (1,528 )     (2,626 )

Treasury stock

    (35,057 )     (32,830 )

Total Shareholders’ Equity

    88,844       82,806  

Total Liabilities and Shareholders’ Equity

  $ 128,740     $ 120,624  

 

-END-