National Research Corporation Announces Fourth Quarter and Year-End 2017 Results

13-02-2018

LINCOLN, Neb., Feb. 13, 2018 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the fourth quarter and year end 2017.

Fourth Quarter

  • Net New Sales $6.2 million
  • Revenue up 5% to $29.9 million
  • Net Income increased 14% to $6.5 million

Year-End 2017

  • Net New Sales $22.2 million
  • Revenue up 7% to $117.6 million
  • Net Income increased 12% to $22.9 million
  • Total Contract Value $125.1 million

Revenue for the fourth quarter ended December 31, 2017, was $29.9 million, compared to $28.4 million for the same quarter in 2016. Net income for the quarter ended December 31, 2017, was $6.5 million, compared to $5.7 million for the quarter ended December 31, 2016. Diluted earnings per share increased to $0.15 for Class A shares and $0.90 for Class B shares for the quarter ended December 31, 2017, from $0.13 for Class A shares and $0.80 for Class B shares for the quarter ended December 31, 2016.

Revenue for the year ended December 31, 2017, was $117.6 million, compared to $109.4 million for the same quarter in 2016. Net income for the year ended December 31, 2017, was $22.9 million, compared to $20.5 million for the year ended 2016. Diluted earnings per share increased to $0.52 for Class A shares and $3.18 for Class B shares for the year ended December 31, 2017, from diluted earnings per share of $0.48 for Class A shares and $2.88 for Class B shares for the year ended December 31, 2016.

Regarding the Company’s financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We are encouraged by our growth in quarterly net new sales performance, achieving $6.2 million in the fourth quarter. Our financial results for the fourth quarter include approximately $500,000 in additional expenses for our proposed recapitalization, as well as a net tax benefit of $1.1 million for the initial estimated impact of the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) and our recent decision to repatriate certain foreign earnings. We continue to analyze the impact of the Tax Act and will make adjustments as we complete our analysis during 2018.”

A listen-only simulcast of National Research Corporation’s 2017 fourth quarter conference call will be available online at https://edge.media-server.com/m6/p/p59zya7p on February 14, 2018, 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 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.

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)

 
  Three months ended
   December 31,     
  Twelve months ended
   December 31,     
  2017     2016   2017     2016
                               
Revenue $ 29,897     $ 28,368     $ 117,559     $ 109,384  
                               
Operating expenses:                              
Direct expenses   12,362       11,836       49,068       45,577  
Selling, general and administrative   7,665       6,619       29,686       28,385  
Depreciation and amortization   1,209       1,079       4,586       4,225  
Total operating expenses   21,236       19,534       83,340       78,187  
                               
Operating income   8,661       8,834       34,219       31,197  
                               
Other income (expense):                              
Interest income   38       13       96       47  
Interest expense   (13 )     (32 )     (82 )     (190 )
Other, net   (27 )     190       50       302  
                               
Total other income (expense)   (2 )     171       64       159  
                               
Income before income taxes   8,659       9,005       34,283       31,356  
                               
Provision for income taxes   2,142       3,280       11,340       10,838  
                               
Net income $   6,517     $ 5,725     $     22,943     $   20,518  
                               
Earnings Per Share of Common Stock:                              
Basic Earnings Per Share:                              
Class A $     0.15     $     0.14     $   0.54     $   0.49  
Class B $     0.93     $     0.82     $   3.26     $   2.93  
Diluted Earnings Per Share:                              
Class A $   0.15     $   0.13     $   0.52     $   0.48  
Class B $   0.90     $   0.80     $   3.18     $   2.88  
                               
Weighted average shares and share equivalents outstanding                              
Class A - basic   20,802       20,717       20,770       20,713  
Class B - basic   3,515       3,511           3,514       3,505  
Class A - diluted   21,843       21,118       21,627       21,037  
Class B - diluted   3,625       3,569       3,603       3,560  
                               
                               

   

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)

               
  Dec. 31,
    Dec. 31,  
  2017
    2016
 
ASSETS              
               
Current Assets:              
Cash and cash equivalents $ 34,733     $ 33,021  
Accounts receivable, net   13,343       10,864  
Income taxes receivable   375       14  
Other current assets   3,808       3,166  
Total Current Assets   52,259       47,065  
               
Property and equipment, net   12,359       11,806  
Goodwill   58,021       57,861  
Other, net   4,677       3,892  
Total Assets $    127,316     $   120,624  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY              
               
Current Liabilities:              
Accounts payable and accrued expenses $ 3,546       3,916  
Deferred revenue    16,878       15,497  
Accrued compensation   6,597       4,543  
Dividends payable   4,222       4,213  
Income taxes payable   --       662  
Notes payable   1,067       2,683  
Total Current Liabilities   32,310       31,514  
 
Non-Current Liabilities   4,965       6,304  
               
Total Liabilities   37,275       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
25,835,230 in 2017 and 25,656,760 in 2016, outstanding 20,936,703 in 2017 and
20,891,069 in 2016
  26       26  
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued
4,319,256 in 2017 and 4,308,875 in 2016, outstanding 3,535,238 in 2017 and
3,539,931 in 2016
  4       4  
Additional paid-in capital   51,025       46,725  
Retained earnings   77,574       71,507  
Accumulated other comprehensive loss   (1,635 )     (2,626 )
Treasury stock   (36,953 )     (32,830 )
Total Shareholders’ Equity   90,041       82,806  
Total Liabilities and Shareholders’ Equity $ 127,316     $ 120,624  
               
               

Contact:  

Kevin R. Karas   
Chief Financial Officer
402-475-2525

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