Attached files
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| EX-99 - EXHIBIT 99.2 - NATIONAL RESEARCH CORP | ex99-2.htm |
| 8-K - FORM 8-K - NATIONAL RESEARCH CORP | nrci20150211_8k.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
FOURTH QUARTER AND YEAR-END 2014 RESULTS
LINCOLN, Nebraska (February 10, 2015) — National Research Corporation (NASDAQ: NRCIA and NRCIB) today announced results for the fourth quarter and year-end 2014.
Fourth Quarter
● Net New Sales of $6.5 million
● Revenue up 10% to $25.1 million
● Net Income up 9% to $4.1 million
Year-End 2014
● Total Contract Value $107.0 million
● Revenue up 7% to $98.8 million
● Net Income up 17% to $18.2 million
Remarking on Company momentum, Michael D. Hays, chief executive officer of National Research Corporation said, “Patients are acting a lot more like customers mirroring purchase decisions where value is central to decision making. Given such, our product portfolio, which is all about engaging and understanding customers’ attitudes, preferences and behaviors, is increasingly gaining traction.”
Revenue for the quarter ended December 31, 2014, was $25.1 million, compared to $22.9 million for the same quarter in 2013. Net income for the quarter ended December 31, 2014, was $4.1 million, compared to $3.8 million for the quarter ended December 31, 2013. Diluted earnings per share increased to $0.10 for Class A shares and $0.58 for Class B shares for the quarter ended December 31, 2014, up from diluted earnings per share of $0.09 for Class A shares and $0.54 for Class B shares for the quarter ended December 31, 2013. Combined diluted earnings per share (a non-GAAP measure) increased to $0.17 for the quarter ended
December 31, 2014, from $0.15 for the fourth quarter of 2013.
NRC Announces Fourth Quarter and Year-End 2014 Results
Page 2
February 10, 2015
Revenue for the year ended December 31, 2014, increased to $98.8 million, compared to $92.6 million for the same period in 2013. Net income for the year ended December 31, 2014, was $18.2 million, compared to $15.5 million for the year ended December 31, 2013. Diluted earnings per share increased to $0.43 for Class A shares and $2.57 for Class B shares for the year ended December 31, 2014, from diluted earnings per share of $0.37 for Class A shares and $2.20 for Class B shares for the year ended December 31, 2013. Combined diluted earnings per share (a non-GAAP measure) increased to $0.74 for the year ended December 31, 2014, from $0.63 for the year ended December 31, 2013.
Regarding the Company’s annual performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continued to leverage our revenue growth in 2014 and increase our operating income margin to 29% of revenue for the full year. We are also very encouraged by our sales momentum as total net new sales for the second half of 2014 grew by 97% over the first half of 2014 and by 16% over the same period in 2013.”
A listen-only simulcast of National Research Corporation’s 2014 fourth quarter and year-end conference call will be available online at http://www.media-server.com/m/p/87xmikhv on February 11, 2015, 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.
-END-
NRC Announces Fourth Quarter and Year-End 2014 Results
Page 3
February 10, 2015
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
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Three months ended |
Twelve months ended |
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2014 |
2013 |
2014 |
2013 |
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Revenue |
$ | 25,124 | $ | 22,923 | $ | 98,837 | $ | 92,590 | ||||||||
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Operating expenses: |
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Direct |
10,848 | 9,648 | 41,719 | 38,844 | ||||||||||||
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Selling, general and administrative |
6,863 | 6,305 | 25,018 | 25,208 | ||||||||||||
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Depreciation and amortization |
994 | 944 | 3,804 | 3,732 | ||||||||||||
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Total operating expenses |
18,705 | 16,897 | 70,541 | 67,784 | ||||||||||||
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Operating income |
6,419 | 6,026 | 28,296 | 24,806 | ||||||||||||
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Other income (expense): |
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Interest income |
25 | 17 | 83 | 63 | ||||||||||||
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Interest expense |
(69 | ) | (88 | ) | (305 | ) | (397 | ) | ||||||||
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Other, net |
1 | (11 | ) | 18 | 16 | |||||||||||
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Total other expense |
(43 | ) | (82 | ) | (204 | ) | (318 | ) | ||||||||
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Income before income taxes |
6,376 | 5,944 | 28,092 | 24,488 | ||||||||||||
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Provision for income taxes |
2,276 | 2,177 | 9,936 | 9,004 | ||||||||||||
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Net income |
$ | 4,100 | $ | 3,767 | $ | 18,156 | $ | 15,484 | ||||||||
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Earnings Per Share of Common Stock: |
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Basic Earnings Per Share: |
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Class A |
$ | 0.10 | $ | 0.09 | $ | 0.44 | $ | 0.37 | ||||||||
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Class B |
$ | 0.59 | $ | 0.55 | $ | 2.62 | $ | 2.25 | ||||||||
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Diluted Earnings Per Share: |
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Class A |
$ | 0.10 | $ | 0.09 | $ | 0.43 | $ | 0.37 | ||||||||
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Class B |
$ | 0.58 | $ | 0.54 | $ | 2.57 | $ | 2.20 | ||||||||
| Weighted average shares and share equivalents outstanding | ||||||||||||||||
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Class A - basic |
20,773 | 20,692 | 20,764 | 20,677 | ||||||||||||
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Class B - basic |
3,474 | 3,452 | 3,473 | 3,447 | ||||||||||||
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Class A - diluted |
21,075 | 21,137 | 21,076 | 21,099 | ||||||||||||
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Class B - diluted |
3,529 | 3,514 | 3,536 | 3,514 | ||||||||||||
-END-
NRC Announces Fourth Quarter and Year-End 2014 Results
Page 4
February 10, 2015
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
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Dec. 31, 2014 |
Dec. 31, 2013 |
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Current Assets: |
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Cash and cash equivalents |
$ | 40,042 | $ | 22,092 | ||||
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Accounts receivable, net |
8,116 | 11,043 | ||||||
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Income taxes receivable |
1,100 | 357 | ||||||
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Other current assets |
3,930 | 3,074 | ||||||
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Total current assets |
53,188 | 36,566 | ||||||
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Property and equipment, net |
12,143 | 11,898 | ||||||
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Goodwill |
58,489 | 57,593 | ||||||
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Other, net |
5,690 | 5,031 | ||||||
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Total Assets |
$ | 129,510 | $ | 111,088 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
$ | 6,028 | $ | 3,230 | ||||
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Deferred revenue |
15,095 | 13,885 | ||||||
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Accrued compensation |
4,365 | 4,319 | ||||||
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Income taxes payable |
110 | 92 | ||||||
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Notes payable |
2,328 | 2,256 | ||||||
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Total Current Liabilities |
27,926 | 23,782 | ||||||
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Non-current liabilities |
13,836 | 15,551 | ||||||
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Total Liabilities |
41,762 | 39,333 | ||||||
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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 25,475,662 in 2014 and 25,285,029 in 2013, outstanding 20,894,286 in 2014 and 20,768,784 in 2013 |
25 | 25 | ||||||
| Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,251,889 in 2014 and 4,220,117 in 2013, outstanding 3,494,865 in 2014 and 3,467,410 in 2013 | 4 | 4 | ||||||
| Additional paid-in capital | 44,864 | 42,192 | ||||||
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Retained earnings |
73,686 | 58,042 | ||||||
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Accumulated other comprehensive income (loss) |
(773 | ) | 302 | |||||
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Treasury stock |
(30,058 | ) | (28,810 | ) | ||||
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Total shareholders’ equity |
87,748 | 71,755 | ||||||
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Total liabilities and shareholders’ equity |
$ | 129,510 | $ | 111,088 |
-END-
NRC Announces Fourth Quarter and Year-End 2014 Results
Page 5
February 10, 2015
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
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Three months ended |
Twelve months ended |
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2014 |
2013 |
2014 |
2013 |
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Combined Earnings Per Share |
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Basic Earnings Per Share |
$ | 0.17 | $ | 0.16 | $ | 0.75 | $ | 0.64 | ||||||||
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Diluted Earnings Per Share |
$ | 0.17 | $ | 0.15 | $ | 0.74 | $ | 0.63 | ||||||||
| Combined weighted average shares and share equivalents outstanding | ||||||||||||||||
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Combined - Basic |
24,247 | 24,144 | 24,237 | 24,123 | ||||||||||||
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Combined - Diluted |
24,603 | 24,651 | 24,611 | 24,613 | ||||||||||||
-END-