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National Research Corporation Announces Fourth Quarter and Year-End 2015 Results
Globe Newswire
Board of Directors Declares Quarterly Dividend

LINCOLN, Neb., Feb. 09, 2016 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRCIA) and (NASDAQ:NRCIB) today announced results for the fourth quarter and year-end 2015.

Fourth Quarter

  • Net New Sales $6.4 million
  • Revenue up 5% to $26.4 million
  • Net Income of $5.9 million

Year-End 2015

  • Total Contract Value $110.2 million
  • Net New Sales $24.1 million
  • Revenue up 4% to $102.3 million
  • Net Income of $17.6 million

Remarking on the upcoming year, Michael D. Hays, chief executive officer of National Research Corporation said, “We start the year with a solid base of contract value largely comprised of core products that have shown consistent growth. Building on that base is our focus.”  

Revenue for the quarter ended December 31, 2015, was $26.4 million, compared to $25.1 million for the same quarter in 2014. Net income for the quarter ended December 31, 2015, was $5.9 million, compared to $4.1 million for the same quarter in 2014. Diluted earnings per share increased to $0.14 for Class A shares and $0.84 for Class B shares for the quarter ended December 31, 2015, from diluted earnings per share of $0.10 for Class A shares and $0.58 for Class B shares for the quarter ended December 31, 2014. Combined diluted earnings per share (a non-GAAP measure) increased to $0.24 for the quarter ended December 31, 2015, from $0.17 for the fourth quarter of 2014. 

Revenue for the year ended December 31 2015, was $102.3 million, compared to $98.8 million for the same quarter in 2014. Net income for the year ended December 31, 2015, was $17.6 million, compared to $18.2 million for the year ended 2014. Diluted earnings per share decreased to $0.41 for Class A shares and $2.49 for Class B shares for the year ended December 31, 2015, from diluted earnings per share of $0.43 for Class A shares and $2.57 for Class B shares for the year ended December 31, 2014. Combined diluted earnings per share (a non-GAAP measure) decreased to $0.71 for the year ended December 31, 2015, from $0.74 for the year ended 2014.

Regarding fourth quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We were able to significantly leverage our revenue growth to achieve a 20% increase in operating income in the quarter compared to the prior year. In addition, we realized a pre-tax gain of $1.1 million on the sale of our clinical workflow product in the fourth quarter.”

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $.08 (eight cents) per Class A share and $.48 (forty-eight cents) per Class B share payable April 15, 2016, to shareholders of record as of the close of business on March 31, 2016.

A listen-only simulcast of National Research Corporation’s 2015 fourth quarter and year-end conference call will be available online at http://edge.media-server.com/m/p/obpo9wir on February 10, 2016, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

For almost 35 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.

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
 
 Three months ended
   December 31,
Twelve months ended
  December 31,
  2015  2014  2015  2014 
     
Revenue$26,365 $25,124 $102,343 $98,837 
     
Operating expenses:    
Direct expenses 11,365  10,848  44,610  41,719 
Selling, general and administrative 6,294  6,863  27,177  25,018 
Depreciation and amortization 1,000  994  4,109  3,804 
Total operating expenses 18,659  18,705  75,896  70,541 
     
Operating income 7,706  6,419  26,447  28,296 
     
Other income (expense):    
Interest income 14  25  60  83 
Interest expense (48) (69) (220) (305)
Other, net 1,096  1  1,073  18 
     
Total other income (expense) 1,062  (43) 913  (204)
     
Income before income taxes 8,768  6,376  27,360  28,092 
     
Provision for income taxes 2,841  2,276  9,750  9,936 
     
Net income$5,927 $4,100 $17,610 $18,156 
     
Earnings Per Share of Common Stock:    
Basic Earnings Per Share:    
Class A$0.14 $0.10 $0.42 $0.44 
Class B$0.85 $0.59 $2.52 $2.62 
Diluted Earnings Per Share:    
Class A$0.14 $0.10 $0.41 $0.43 
Class B$0.84 $0.58 $2.49 $2.57 
     
Weighted average shares and share equivalents outstanding Class A - basic 20,656  20,773  20,741  20,764 
Class B - basic 3,478  3,474  3,478  3,473 
Class A - diluted 20,936  21,075  20,981  21,076 
Class B - diluted 3,523  3,529  3,523  3,536 

 

    
NATIONAL RESEARCH CORPORATION AND SUBSIDIARIES 
Unaudited Condensed Consolidated Balance Sheets 
(Dollars in thousands, except per share amounts and par value) 
 
   Dec. 31,  Dec. 31,
ASSETS 2015  2014  
Current Assets:   
Cash and cash equivalents$42,145 $40,042  
Accounts receivable, net 9,808  8,116  
Income taxes receivable 157  1,100  
Other current assets 4,001  3,930  
Total Current Assets 56,111  53,188  
  
Property and equipment, net 11,125  12,143  
Goodwill 57,792  58,489  
Other, net 4,071  5,690  
Total Assets$129,099 $129,510  
  
LIABILITIES AND SHAREHOLDERS’ EQUITY 
Current Liabilities: 
Accounts payable and accrued expenses$21,834 $6,028  
Deferred revenue 14,843  15,095  
Accrued compensation 4,391  4,365  
Income taxes payable 701  110  
Notes payable 2,402  2,328  
Total Current Liabilities 44,171  27,926  
  
Non-current Liabilities 10,706  13,836  
  
Total Liabilities 54,877  41,762  
  
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 25,592,812 in 2015 and 25,475,662 in 2014, outstanding 20,848,168 in 2015 and 20,894,286 in 2014  26  25  
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,271,413 in 2015 and 4,251,889 in 2014, outstanding 3,510,150 in 2015 and 3,494,865 in 2014 4  4  
Additional paid-in capital 44,103  44,864  
Retained earnings 65,313  73,686  
Accumulated other comprehensive loss (2,995) (773) 
Treasury stock (32,229) (30,058) 
Total Shareholders’ Equity 74,222  87,748  
Total Liabilities and Shareholders’ Equity$129,099 $129,510  

  

NATIONAL RESEARCH CORPORATION AND SUBSIDIARIES
Unaudited Non-GAAP Combined Earnings Per Share Schedule
(In thousands, except per share data)
   
 Three months ended
   December 31,  
Twelve months ended
  December 31,    
    2015     2014    2015    2014  
     
 

Combined Earnings Per Share
    
  Basic Earnings Per Share$  0.24 $  0.17 $  0.72 $  0.75 
  Diluted Earnings Per Share$  0.24 $    0.17 $  0.71 $  0.74 
Combined weighted average shares and share equivalents outstanding
  Combined - Basic
   24,134     24,247    24,219    24,237 
  Combined - Diluted    24,459     24,603    24,503    24,611 
Contact: Kevin R. Karas   
Chief Financial Officer
402-475-2525

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