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


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