National Research Corporation Announces Second Quarter 2014 Results

By GlobeNewswire,  August 05, 2014, 05:00:00 PM EDT


LINCOLN, Neb., Aug. 5, 2014 (GLOBE NEWSWIRE) -- National Research Corporation (Nasdaq:NRCIA) (Nasdaq:NRCIB) today announced results for the second quarter of 2014.

  • Net New Sales $4.1 million
  • Total Contract Value $99.5 million
  • Revenue up 7% to $24.0 million
  • Net Income of $4.1 million, up 18%

Remarking on company performance, Michael D. Hays, Chief Executive Officer of National Research said, "Net new sales are up 25% from last quarter and looking ahead at new sales for the last half of the year, suggests recent changes made appear sustainable."

Revenue for the quarter ended June 30, 2014, was $24.0 million, compared to $22.4 million for the same quarter in 2013. Net income for the quarter ended June 30, 2014, was $4.1 million, compared to $3.4 million for the quarter ended June 30, 2013. Diluted earnings per share increased to $0.10 for Class A shares and $0.57 for Class B shares for the quarter ended June 30, 2014, from diluted earnings per share of $0.08 for Class A shares and $0.49 for Class B shares for the quarter ended June 30, 2013. Combined diluted earnings per share (a non-GAAP measure) increased to $0.16 for the quarter ended June 30, 2014, from $0.14 for the second quarter of 2013.

Regarding second quarter performance, Kevin Karas, Chief Financial Officer of National Research, said, "The positive trend of double-digit revenue growth continued in our Acute Care Experience (17%), Market Insights (13%), and Connect (23%) offerings. From an earnings standpoint, we continue to enjoy leverage on incremental revenue, which resulted in net income growth by 18% for the quarter."

A listen-only simulcast of the National Research 2014 second quarter conference call will be available online at http://www.media-server.com/m/p/ui8foa57 on August 6, 2014, 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 33 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.

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
         
  Three months ended Six months ended
  June 30, June 30,
  2014 2013 2014 2013
         
Revenue $24,001 $22,354 $50,031 $47,260
         
Operating expenses:        
Direct expenses 10,773 9,498 21,102 19,744
Selling, general and administrative 5,984 6,391 12,349 12,884
Depreciation and amortization 926 931 1,861 1,882
Total operating expenses 17,683 16,820 35,312 34,510
         
Operating income 6,318 5,534 14,719 12,750
         
Other income (expense):        
Interest income 19 12 36 31
Interest expense (78) (101) (160) (217)
Other, net 7 18 14 32
         
Total other expense (52) (71) (110) (154)
         
Income before income taxes 6,266 5,463 14,609 12,596
         
Provision for income taxes 2,215 2,029 5,104 4,692
         
Net income $4,051 $3,434 $9,505 $7,904
         
Earnings Per Share of Common Stock:        
Basic Earnings Per Share:        
Class A $0.10 $0.08 $0.23 $0.19
Class B $0.58 $0.50 $1.37 $1.15
Diluted Earnings Per Share:        
Class A $0.10 $0.08 $0.22 $0.19
Class B $0.57 $0.49 $1.34 $1.12
         
Weighted average shares and share equivalents outstanding         
Class A - basic 20,771 20,672 20,757 20,671
Class B - basic 3,474 3,445 3,472 3,445
Class A - diluted 21,073 21,085 21,098 21,074
Class B - diluted 3,539 3,516 3,540 3,513
         
         
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
     
  Jun. 30, Dec. 31,
  2014 2013
ASSETS
Current Assets:    
Cash and cash equivalents  $ 31,539  $ 22,092
Accounts receivable, net 11,450 11,043
Income taxes receivable 612 357
Other current assets 3,874 3,074
Total current assets 47,475 36,566
     
Property and equipment, net 12,179 11,898
Goodwill 57,599 57,593
Other, net 4,615 5,031
Total Assets  $ 121,868  $ 111,088
     
LIABILITIES AND SHAREHOLDERS' EQUITY
     
Current Liabilities:    
Accounts payable and accrued expenses  $ 3,639  $ 3,230
Deferred revenue 16,062 13,885
Accrued compensation 3,187 4,319
Income taxes payable 108 92
Notes payable 2,291 2,256
Total current liabilities 25,287 23,782
     
Non-current liabilities 14,503 15,551
     
Total Liabilities 39,790 39,333
     
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 25,372,186 in 2014 and 25,285,029 in 2013, outstanding 20,808,304 in 2014 and 20,768,784 in 2013 25 25
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,234,643 in 2014 and 4,220,117 in 2013, outstanding 3,480,217 in 2014 and 3,467,410 in 2013 4 4
Additional paid-in capital 43,859 42,192
Retained earnings 67,547 58,042
Accumulated other comprehensive income 359 302
Treasury stock (29,716) (28,810)
Total shareholder's equity 82,078 71,755
Total liabilities and shareholders' equity  $ 121,868  $ 111,088
     
     
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
         
  Three months ended Six months ended
  June 30, June 30,
  2014 2013 2014 2013
         
Combined Earnings Per Share        
Basic Earnings Per Share $0.17 $0.14 $0.39 $0.33
Diluted Earnings Per Share $0.16 $0.14 $0.39 $0.32
         
Combined weighted average shares and share equivalents outstanding        
Combined - Basic 24,245 24,118 24,228 24,116
Combined - Diluted 24,613 24,600 24,638 24,587
         
CONTACT: Kevin R. Karas
         Chief Financial Officer
         402-475-2525

Source: National Research Corporation

This article appears in: News Headlines

Referenced Stocks: NRCIA, NRCIB


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