National Research Corporation Announces First Quarter 2018 Results
May 01 2018 - 4:00PM
National Research Corporation (NASDAQ:NRC) today announced results
for the first quarter of 2018.
Digital VOC Platform highlights:
- VOC contract value doubles to $29 million
- Platform accounts for 21% of total first quarter revenue up
from 10% year-over-year
- Platform variable direct expense drops in half
- Major back-to-back wins confirm emerging advantage at point of
sale
Remarking on Company performance, Michael D.
Hays, chief executive officer of National Research Corporation
said, “The quarter is less about consolidated performance and all
about our unwavering focus in migrating current clients to our
digital VOC platform. Early results are ahead of my expectations
and our point of sale advantage is becoming confirmed.”
Kevin Karas, chief financial officer commented,
“The quarter was noisy driven by unique events including our
recapitalization, adoption of the new revenue recognition standard,
impact of the 2017 Tax Act and redirection of sales resources to
convert existing clients to the digital platform.”
Revenue for the quarter ended March 31, 2018 was
$31.0 million, compared to $30.3 million for the same quarter
in 2017. Net income for the quarter ended March 31, 2018, was $7.3
million, compared to $6.5 million for the quarter ended March 31,
2017. Diluted earnings per share increased to $0.17 for Class A
shares and $1.01 for Class B shares for the quarter ended March 31
2018, from diluted earnings per share of $0.15 for Class A shares
and $0.91 for Class B shares for the quarter ended March 31,
2017.
A listen-only simulcast of National Research
Corporation’s 2018 first quarter conference call will be available
online at http://edge.media-server.com/m6/p/9zmhhi86 on May 2,
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 37 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
SUBSIDIARYUnaudited Condensed
Consolidated Statements of Income(In thousands, except per
share data)
|
Three months ended |
|
March 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
Revenue |
$ |
31,017 |
|
|
$ |
30,276 |
|
|
|
|
Operating
expenses: |
|
|
Direct |
|
12,909 |
|
|
|
12,500 |
|
Selling,
general and administrative |
|
7,867 |
|
|
|
6,686 |
|
Depreciation and amortization |
|
1,283 |
|
|
|
1,106 |
|
Total
operating expenses |
|
22,059 |
|
|
|
20,292 |
|
|
|
|
Operating
income |
|
8,958 |
|
|
|
9,984 |
|
|
|
|
Other income
(expense): |
|
|
Interest
income |
|
45 |
|
|
|
14 |
|
Interest
expense |
|
(8 |
) |
|
|
(27 |
) |
Other,
net |
|
(28 |
) |
|
|
9 |
|
|
|
|
Total
other income (expense) |
|
9 |
|
|
|
(4 |
) |
|
|
|
Income
before income taxes |
|
8,967 |
|
|
|
9,980 |
|
|
|
|
Provision for income
taxes |
|
1,661 |
|
|
|
3,459 |
|
|
|
|
Net
income |
$ |
7,306 |
|
|
$ |
6,521 |
|
|
|
|
Earnings Per Share of Common Stock: |
|
|
Basic Earnings Per Share: |
|
|
Class A |
$ |
0.17 |
|
|
$ |
0.15 |
|
Class B |
$ |
1.04 |
|
|
$ |
0.93 |
|
Diluted Earnings Per Share: |
|
|
Class A |
$ |
0.17 |
|
|
$ |
0.15 |
|
Class B |
$ |
1.01 |
|
|
$ |
0.91 |
|
|
|
|
Weighted average shares
and share equivalents outstanding |
|
|
|
|
|
|
|
Class A -
Basic |
|
20,884 |
|
|
|
20,737 |
|
Class B -
Basic |
|
3,527 |
|
|
|
3,513 |
|
Class A -
Diluted |
|
21,837 |
|
|
|
21,245 |
|
Class B -
Diluted |
|
3,630 |
|
|
|
3,576 |
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARYUnaudited Condensed Consolidated
Balance Sheets(Dollars in thousands,
except per share amounts and par value)
|
Mar. 31, |
|
Dec. 31, |
|
2018 |
|
2017 |
ASSETS |
Current Assets: |
|
|
Cash and
cash equivalents |
$ |
35,478 |
|
|
$ |
34,733 |
|
Accounts
receivable, net |
|
14,306 |
|
|
|
14,806 |
|
Income
taxes receivable |
|
68 |
|
|
|
375 |
|
Other
current assets |
|
2,426 |
|
|
|
2,345 |
|
Total
Current Assets |
|
52,278 |
|
|
|
52,259 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
12,456 |
|
|
|
12,359 |
|
Goodwill |
|
57,956 |
|
|
|
58,021 |
|
Deferred contract
costs |
|
3,571 |
|
|
|
-- |
|
Other, net |
|
4,715 |
|
|
|
4,677 |
|
Total
Assets |
$ |
130,976 |
|
|
$ |
127,316 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Current
Liabilities: |
|
|
Accounts
payable and accrued expenses |
$ |
3,893 |
|
|
$ |
3,546 |
|
Deferred
revenue |
|
16,965 |
|
|
|
16,878 |
|
Accrued
compensation |
|
3,538 |
|
|
|
6,597 |
|
Dividends
payable |
|
4,223 |
|
|
|
4,222 |
|
Income
taxes payable |
|
865 |
|
|
|
-- |
|
Notes
payable |
|
-- |
|
|
|
1,067 |
|
Total
Current Liabilities |
|
29,484 |
|
|
|
32,310 |
|
|
|
|
Non-Current
Liabilities |
|
6,128 |
|
|
|
4,965 |
|
|
|
|
|
|
Total
Liabilities |
|
35,612 |
|
|
|
37,275 |
|
|
|
|
|
|
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 25,916,792 in 2018 and 25,835,230 in 2017, outstanding
20,988,085 in 2018 and 20,936,703 in 2017 |
|
26 |
|
|
|
26 |
|
Class B
Common stock, $0.001 par value; authorized 80,000,000 shares,
issued 4,328,552 in 2018 and 4,319,256 in 2017, outstanding
3,540,857 in 2018 and 3,535,238 in 2017 |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
52,216 |
|
|
|
51,025 |
|
Retained
earnings |
|
83,392 |
|
|
|
77,574 |
|
Accumulated other comprehensive loss |
|
(2,049 |
) |
|
|
(1,635 |
) |
Treasury
stock |
|
(38,225 |
) |
|
|
(36,953 |
) |
Total
Shareholders’ Equity |
|
95,364 |
|
|
|
90,041 |
|
Total
Liabilities and Shareholders’ Equity |
$ |
130,976 |
|
|
$ |
127,316 |
|
Contact: Kevin R. Karas
Chief Financial Officer
402-475-2525
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