LINCOLN, Neb., Nov. 06, 2018 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) today announced results for the third quarter of 2018.

  • Net New Sales of $6.2 million
  • Revenue up 4% to $30 million
  • Operating Income up 29% to $9.2 million
  • Voice of Customer platform contract value increased to $37 million
  • Third quarter platform revenue increased to 27% of total revenue, up from 15% in the same period 2017

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “We welcome MD Anderson, Johns Hopkins and Cedars-Sinai to our growing list of new and expanded NRC Health partners. In the third quarter alone, we exceeded the total dollar value of new client wins in all of 2017 and year-to-date, have more than doubled last year.”

Kevin Karas, chief financial officer commented, “Third quarter net new sales were 15% higher than the same period last year. We also realized much better customer retention which drove significant improvement in our revenue growth rate compared to the first half of 2018. Operating income increased by over $2.0 million compared to the prior year as a result of revenue growth leverage, operating efficiencies and the impact of $958,000 of recapitalization costs incurred in the third quarter of 2017.”

Revenue for the quarter ended September 30, 2018, was $30.0 million, compared to $29.0 million for the same quarter in 2017. Net income for the quarter ended September 30, 2018, was $7.0 million, compared to $4.2 million for the quarter ended September 30, 2017. Diluted earnings per share increased to $0.27 for the common shares (formerly Class A) for the quarter ended September 30, 2018, from diluted earnings per share of $0.09 for Class A shares and $0.57 for Class B shares for the quarter ended September 30, 2017. Due to the recapitalization transaction on April 17, 2018, income has been allocated to both classes of shares through April 16, and allocated only to common stock (formerly Class A) after April 16.

A listen-only simulcast of National Research Corporation’s 2018 third quarter conference call will be available online at http://edge.media-server.com/m6/p/v4h88sbd on November 7, 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.

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

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)

 Three months ended
   September 30,    
Nine months ended
  September 30,    
   2018    2017 2018  2017
     
Revenue$  30,013  $28,951  $  89,047  $  87,661 
     
Operating expenses:    
Direct expenses 11,780   12,267     35,685     36,706 
Selling, general and administrative 7,679   8,430   23,486     22,021 
Depreciation and amortization   1,388     1,132     3,996      3,376 
  Total operating expenses   20,847     21,829     63,167     62,103 
     
  Operating income 9,166   7,122   25,880   25,558 
     
Other income (expense):    
  Interest income 3   29   57   58 
  Interest expense (544)  (18)  (990)  (68)
  Other, net   (242)    40     222     76 
     
  Total other (expense) income   (783)    51     (711)    66 
     
  Income before income taxes 8,383   7,173   25,169   25,624 
     
Provision for income taxes   1,391     3,020     2,923     9,198 
     
  Net income$  6,992  $  4,153  $  22,246  $  16,426 
     
Earnings Per Share of Common Stock:    
  Basic Earnings Per Share:    
  Common (formerly Class A)$    0.28  $    0.10  $  0.76  $  0.39 
  Class B$  --  $    0.59  $  1.31  $  2.34 
  Diluted Earnings Per Share:    
  Common (formerly Class A)$  0.27  $  0.09  $  0.73  $  0.38 
  Class B$  --  $  0.57  $  1.27  $  2.28 
     
Weighted average shares and share equivalents outstanding
  Common (formerly Class A) - basic
   24,671     20,788     23,184     20,759 
  Class B - basic   --      3,514     3,527     3,514 
  Common (formerly Class A) - diluted   25,526     21,740     24,083     21,537 
  Class B - diluted   --     3,620     3,628     3,595 

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

 
Sep. 30, 
2018
 Dec. 31,
2018
ASSETS        
Current Assets:       
Cash and cash equivalents $7,273  $34,733 
Accounts receivable, net  16,544   14,806 
Income taxes receivable 1,001   375 
Other current assets 3,952   2,345 
Total Current Assets  28,770   52,259 
        
Property and equipment, net 14,269   12,359 
Goodwill 57,955   58,021 
Deferred contract costs 3,371   -- 
Other, net 4,352   4,677 
Total Assets$108,717  $127,316 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY       
        
Current Liabilities:       
Accounts payable and accrued expenses$4,307  $3,546 
Deferred revenue 18,642   16,878 
Accrued compensation 4,586   6,597 
Dividends payable 4,209   4,222 
Income taxes payable 70   -- 
Notes payable 3,623   1,067 
Total Current Liabilities 35,437   32,310 
        
Non-Current Liabilities 43,141   4,965 
        
Total Liabilities 78,578   37.275 
        
Shareholders’ Equity:       
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued --   -- 
Common stock (formerly Class A Common stock) $0.001 par value; authorized 60,000,000 shares, issued 29,830,307 in 2018 and 25,835,230 in 2017, outstanding 24,762,212 in 2018 and 20,936,703 in 2017 30   26 
Class B Common stock, $0.001 par value; 4,319,256 issued and 3,535,238 outstanding in 2017 --   4 
Additional paid-in capital 156,384   51,025 
Retained earnings (97,027)  77,574 
Accumulated other comprehensive loss (2,053)  (1,635)
Treasury stock (27,195)  (36,953)
Total Shareholders’ Equity 30,139   90,041 
Total Liabilities and Shareholders’ Equity$108,717  $127,316