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CST: 16/10/2019 04:30:31   

National Research Corporation Announces Second Quarter 2019 Results

70 Days ago

LINCOLN, Neb., Aug. 06, 2019 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) today announced results for the second quarter of 2019.

  • Net New Sales of $6.1 million up 14%
  • Revenue increased 12% to $31.4 million
  • Operating Income increased 31% to $10.1 million
  • Voice of the Customer (VoC) platform revenue increased by 38%

Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation said, “The Company’s performance for the quarter was extremely strong and that momentum continues in the third quarter with the signing of the largest new client contract of the year.”

Revenue for the quarter ended June 30, 2019 was $31.4 million, compared to $28.0 million for the same quarter in 2018. Net income for the quarter ended June 30, 2019, was $7.4 million, compared to $7.9 million for the quarter ended June 30, 2018. Diluted earnings per share increased to $0.29 for the common stock (formerly Class A) for the quarter ended June 30, 2019, from diluted earnings per share of $0.28 for Class A shares and $0.26 for Class B shares for the quarter ended June 30, 2018. Due to the recapitalization transaction on April 17, 2018, income has been allocated to both classes of shares through April 16, 2018, and allocated only to common stock (formerly Class A) after April 16, 2018.

Regarding the Company’s second quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Our sales performance continues to gain momentum with our total net new sales for the trailing four quarters increasing by over 13% compared to the prior four quarters. The continued focus on adding new customers to the VoC platform solution and driving value for existing customers resulted in an increase in total contract value in the second quarter of 7% over the prior year and expansion of operating income margins to 33% on a year-to-date basis.”

A listen-only simulcast of National Research Corporation’s 2019 second quarter conference call will be available online at http://edge.media-server.com/mmc/p/vcr2isv8 on August 7, 2019, 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 38 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
June 30,
Six months ended
June 30,
    2019       2018       2019       2018  
                               
Revenue $ 31,414     28,017     $ 62,894     $ 59,034  
                               
Operating expenses:                              
Direct expenses   11,506       10,996       23,160       23,160  
Selling, general and administrative   8,319       7,940       16,026       15,808  
Depreciation and amortization   1,440       1,325       2,855       2,608  
Total operating expenses   21,265       20,261       42,041       42,320  
                               
Operating income   10,149       7,756       20,853       16,714  
                               
Other income (expense):                              
Interest income   8       9       14       54  
Interest expense   (533 )     (439 )     (1,103 )     (447 )
Other, net   (139 )     493       (419 )     464  
                               
Total other income (expense)   (664 )     63       (1,508 )     71  
                               
Income before income taxes   9,485       7,819       19,345       16,785  
                               
Provision (benefit) for income taxes   2,092       (129 )     3,756       1,531  
                               
Net income $ 7,393     $ 7,948     $ 15,589     $ 15,254  
                               
Earnings Per Share of Common Stock:                              
Basic Earnings Per Share:                              
Common (formerly Class A) $ 0.30     $ 0.29     $ 0.63     $ 0.47  
Class B $ --     $ 0.27     $ --     $ 1.31  
Diluted Earnings Per Share:                              
Common (formerly Class A) $ 0.29     $ 0.28     $ 0.61     $ 0.45  
Class B $ --     $ 0.26     $ --     $ 1.27  
                               
Weighted average shares and share equivalents outstanding                              
Common (formerly Class A) - basic   24,789       23,957       24,777       22,429  
Class B - basic   --       3,527       --       3,527  
Common (formerly Class A) - diluted   25,586       24,846       25,549       23,350  
Class B - diluted   --       3,620       --       3,628  



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

    June 30,
2019
    December 31,
2018
 
               
Assets                
Current assets:                
Cash and cash equivalents   $ 4,020     $ 12,991  
Accounts receivable, net     15,087       11,922  
Income taxes receivable     637       348  
Other current assets     3,144       3,149  
Total current assets     22,888       28,410  
                 
Net property and equipment     13,872       14,153  
Goodwill     57,922       57,831  
Other, net     9,593       7,638  
Total assets   $ 104,275     $ 108,032  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
Notes payable and line of credit   $ 4,890     $ 3,667  
Accounts payable and accrued expenses     3,999       3,447  
Accrued compensation     5,535       5,798  
Income taxes payable     43       636  
Dividends payable     4,727       17,113  
Deferred revenue     16,988       16,244  
Other current liabilities     894       204  
Total current liabilities     37,076       47,109  
                 
Non-current liabilities     41,232       41,840  
Total liabilities     78,308       88,949  
                 
Shareholders’ equity:                
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued     --       --  
Common stock, $0.001 par value; authorized 60,000,000 shares, issued 30,027,919 in 2019 and 29,917,667 in 2018, outstanding 24,879,414 in 2019 and 24,800,796 in 2018     30       30  
Additional paid-in capital     158,691       157,312  
Retained earnings (accumulated deficit)     (100,201     (106,339
Accumulated other comprehensive loss, foreign currency translation adjustment     (2,296 )     (2,916 )
Treasury stock     (30,257 )     (29,004 )
Total shareholders’ equity     25,967       19,083  
Total liabilities and shareholders’ equity   $ 104,275     $ 108,032  


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

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