Attached files
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| 8-K - FORM 8-K - NATIONAL RESEARCH CORP | nrci20131106_8k.htm |
| EX-99 - EXHIBIT 99.2 - NATIONAL RESEARCH CORP | ex99-2.htm |
Exhibit 99.1
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1245 “Q” Street Lincoln, NE 68508 Phone: 402-475-2525 Fax: 402-475-9061 |
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Contact: |
Kevin R. Karas |
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Chief Financial Officer | |
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402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
THIRD QUARTER 2013 RESULTS
Company Achieves Record Net New Sales
LINCOLN, Nebraska (November 5, 2013) — National Research Corporation (NASDAQ:NRCIA and NRCIB) today announced results for the third quarter of 2013.
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Net New Sales $6.2 million |
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Total Contract Value $100.6 million |
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Revenue up 5% to $22.4 million |
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Operating Income to $6.0 million, up 7% |
Remarking on company performance, Michael D. Hays, chief executive officer of National Research Corporation (NRC), said “Our planned investment in Customer Connect halved our operating income growth rate in the quarter. I anticipate accelerated spending on Customer Connect and similar growth runways in the coming quarters. Consequently, the company reaffirms, as previously announced, the suspension of cash dividends in favor of these investments.”
Revenue for the quarter ended September 30, 2013, was $22.4 million, compared to
$21.4 million for the same quarter in 2012. Net income for the quarter ended September 30, 2013, was $3.8 million, compared to $3.6 million for the quarter ended September 30, 2012. Combined diluted earnings per share increased to $0.16 for the quarter ended September 30, 2013, from $0.15 for the third quarter of 2012.
Regarding third quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Net new sales increased 32% over the third quarter 2012 to
$6.2 million, setting a new Company record. New contract wins and strong renewals in the quarter drove total contract value of largely subscription-based contracts past the $100 million mark.”
A listen-only simulcast of National Research Corporation’s 2013 third quarter conference call will be available online at http://www.media-server.com/m/p/nzmfokek on
NRC Announces Third Quarter 2013 Results
Page 2
November 5, 2013
November 6, 2013, 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 32 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.
NRC Announces Third Quarter 2013 Results
Page 3
November 5, 2013
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
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Three months ended |
Nine months ended |
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2013 |
2012 |
2013 |
2012 |
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Revenue |
$ | 22,407 | $ | 21,386 | $ | 69,667 | $ | 64,425 | ||||||||
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Operating expenses: |
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Direct expenses |
9,452 | 8,769 | 29,196 | 26,333 | ||||||||||||
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Selling, general and administrative |
6,019 | 5,821 | 18,903 | 17,541 | ||||||||||||
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Depreciation and amortization |
907 | 1,149 | 2,788 | 3,606 | ||||||||||||
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Total operating expenses |
16,378 | 15,739 | 50,887 | 47,480 | ||||||||||||
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Operating income |
6,029 | 5,647 | 18,780 | 16,945 | ||||||||||||
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Other income (expense): |
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Interest income |
14 | 8 | 45 | 20 | ||||||||||||
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Interest expense |
(91 | ) | (134 | ) | (309 | ) | (416 | ) | ||||||||
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Other, net |
(4 | ) | (29 | ) | 28 | (16 | ) | |||||||||
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Total other expense |
(81 | ) | (155 | ) | (236 | ) | (412 | ) | ||||||||
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Income before income taxes |
5,948 | 5,492 | 18,544 | 16,533 | ||||||||||||
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Provision for income taxes |
2,135 | 1,915 | 6,827 | 5,168 | ||||||||||||
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Net income |
$ | 3,813 | $ | 3,577 | $ | 11,717 | $ | 11,365 | ||||||||
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Earnings Per Share of Common Stock: |
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Basic Earnings Per Share: |
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Class A |
$ | 0.09 | $ | 0.09 | $ | 0.28 | $ | 0.28 | ||||||||
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Class B |
$ | 0.55 | $ | 0.53 | $ | 1.70 | $ | 1.68 | ||||||||
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Diluted Earnings Per Share: |
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Class A |
$ | 0.09 | $ | 0.09 | $ | 0.28 | $ | 0.27 | ||||||||
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Class B |
$ | 0.54 | $ | 0.51 | $ | 1.67 | $ | 1.64 | ||||||||
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Weighted average shares and share equivalents outstanding |
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Class A - basic |
20,672 | 20,373 | 20,671 | 20,262 | ||||||||||||
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Class B - basic |
3,445 | 3,395 | 3,445 | 3,377 | ||||||||||||
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Class A - diluted |
21,111 | 20,883 | 21,087 | 20,823 | ||||||||||||
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Class B - diluted |
3,514 | 3,480 | 3,513 | 3,470 | ||||||||||||
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Combined Earnings Per Share (non-GAAP) |
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Basic Earnings Per Share |
$ | 0.16 | $ | 0.15 | $ | 0.49 | $ | 0.48 | ||||||||
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Diluted Earnings Per Share |
$ | 0.16 | $ | 0.15 | $ | 0.48 | $ | 0.47 | ||||||||
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Combined weighted average shares and share equivalents outstanding (non-GAAP) |
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Combined - Basic |
24,117 | 23,768 | 24,116 | 23,639 | ||||||||||||
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Combined - Diluted |
24,625 | 24,363 | 24,600 | 24,293 | ||||||||||||
NRC Announces Third Quarter 2013 Results
Page 4
November 5, 2013
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
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Sep. 30, |
Dec. 31, | |||||||
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2013 |
2012 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ | 18,934 | $ | 8,286 | ||||
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Accounts receivable, net |
11,377 | 12,119 | ||||||
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Income taxes receivable |
334 | 158 | ||||||
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Other current assets |
4,263 | 3,252 | ||||||
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Total current assets |
34,908 | 23,815 | ||||||
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Property and equipment, net |
12,040 | 12,493 | ||||||
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Goodwill |
57,698 | 57,799 | ||||||
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Other, net |
5,268 | 5,939 | ||||||
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Total Assets |
$ | 109,914 | $ | 100,046 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
$ | 3,416 | $ | 2,658 | ||||
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Deferred revenue |
16,516 | 15,812 | ||||||
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Accrued compensation |
3,937 | 4,392 | ||||||
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Deferred Income Taxes |
20 | -- | ||||||
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Notes payable |
2,238 | 12,436 | ||||||
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Total current liabilities |
26,127 | 35,298 | ||||||
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Non-current liabilities |
16,249 | 8,006 | ||||||
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Total Liabilities |
42,376 | 43,304 | ||||||
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Shareholders’ Equity: |
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Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued |
-- | -- | ||||||
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Class A Common stock, $0.001 par value; authorized 60,000,000 shares, issued 25,249,029 in 2013 and 25,129,776 in 2012, outstanding 20,732,784 in 2013 and 20,624,976 in 2012 |
25 | 25 | ||||||
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Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,208,118 in 2013 and 4,188,296 in 2012, outstanding 3,455,411 in 2013 and 3,437,496 in 2012 |
4 | 4 | ||||||
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Additional paid-in capital |
41,298 | 39,493 | ||||||
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Retained earnings |
54,275 | 44,700 | ||||||
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Accumulated other comprehensive income |
746 | 1,124 | ||||||
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Treasury stock |
(28,810 | ) | (28,604 | ) | ||||
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Total shareholder’s equity |
67,538 | 56,742 | ||||||
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Total liabilities and shareholders’ equity |
$ | 109,914 | $ | 100,046 | ||||
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