Subscription-Based Products Benefit From Increasing Market Acceptance
LINCOLN, Nebraska (November 1, 2011) — National Research Corporation (NASDAQ:NRCI) today announced results for the third quarter 2011.
- Quarterly net new sales of $4.9 million
- Quarterly revenue up 16% to $18.5 million
- Quarterly net income up 24% to $2.6 million
- Quarterly diluted earnings per share of $0.39 up 22%
- Total Contract Value reaches $80.8 million
Commenting on the third quarter and overall company performance, Michael D. Hays, chief executive officer of National Research Corporation, said, “Again this quarter, we witnessed robust growth driven by our unique product portfolio resulting in increased current client spend, while also outpacing competitors’ value proposition at point of sale. To this latter point, in October, a large healthcare system selected us based upon our differentiated offering, which today pushes Total Contract Value to $84 million.”
Revenue for the quarter ended September 30, 2011, was $18.5 million, compared to $16.0 million for the same quarter in 2010. Net income for the quarter ended September 30, 2011, was $2.6 million, or $0.40 per basic share and $0.39 per diluted share, compared to $2.1 million for the third quarter 2010, or $0.32 per basic and diluted share.
In closing, Kevin Karas, chief financial officer of National Research Corporation, said, “Subscription-based contracts accounted for an increased percentage of the company’s third quarter revenue. As well, within the quarter we saw a growing number of current clients purchase additional products. Both of these trends support enhanced operating margins over time.”
A listen-only simulcast of National Research Corporation’s 2011 third quarter conference call will be available online at www.earnings.com on November 2, 2011, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.
National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of performance measurement, improvement services, and governance education to the healthcare industry in the United States and Canada.
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
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
--------- --------- --------- ---------
Revenue $ 18,549 $ 16,006 $ 56,655 $ 47,515
Operating expenses:
Direct expenses 7,471 6,038 21,489 18,370
Selling, general and
administrative 5,572 5,250 17,651 14,265
Depreciation and amortization 1,312 1,225 3,790 3,382
--------- --------- --------- ---------
Total operating expenses 14,355 12,513 42,930 36,017
--------- --------- --------- ---------
Operating income 4,194 3,493 13,725 11,498
Other income (expense), net:
Interest income 4 1 8 5
Interest expense (155) (137) (480) (328)
Other, net 74 (24) 55 (18)
--------- --------- --------- ---------
Total other income
(expense), net (77) (160) (417) (341)
--------- --------- --------- ---------
Income before income taxes 4,117 3,333 13,308 11,157
Provision for income taxes 1,470 1,191 4,876 4,226
--------- --------- --------- ---------
Net income $ 2,647 $ 2,142 $ 8,432 $ 6,931
========= ========= ========= =========
Net income per share, basic $ 0.40 $ 0.32 $ 1.26 $ 1.04
Net income per share, diluted $ 0.39 $ 0.32 $ 1.23 $ 1.03
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 6,679 6,632 6,666 6,635
Diluted 6,850 6,727 6,845 6,725
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands)
Sept. 30, Dec. 31,
2011 2010
---------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 6,223 $ 3,519
Accounts receivable, net 12,281 9,172
Income taxes recoverable 369 1,277
Other current assets 2,754 3,373
---------- ---------
Total current assets 21,627 17,341
Net property and equipment 13,888 14,482
Other, net 65,437 63,947
---------- ---------
Total Assets $ 100,952 $ 95,770
========== =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts payable and
accrued expenses $ 2,964 $ 3,872
Deferred revenue 18,423 17,701
Accrued compensation 3,391 2,750
Notes payable 1,878 1,827
---------- ---------
Total current
liabilities 26,656 26,150
Non-current liabilities 20,786 21,036
---------- ---------
Total Liabilities 47,442 47,186
---------- ---------
Shareholders' Equity:
Common stock, $0.001 par
value; 20,000,000 shares
authorized;
issued 8,112,412 in 2011
and 8,044,855 in 2010;
outstanding 6,723,790 in
2011 and 6,668,574 in 2010 8 8
Additional paid-in capital 30,630 28,970
Retained earnings 45,340 41,343
Accumulated other
comprehensive income 797 1,108
Treasury stock (23,265) (22,845)
---------- ---------
Total shareholders'
equity 53,510 48,584
---------- ---------
Total liabilities and
shareholders' equity $ 100,952 $ 95,770
========== =========
CONTACT: Kevin R. Karas
Chief Financial Officer
402-475-2525