National Research Corporation Announces Second Quarter 2017 Results

LINCOLN, Neb., Aug. 01, 2017 -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the second quarter of 2017.

Net New Sales $5.6 million
Total Contract Value $121.7 million
Revenue up 9% to $28.4 million
Net Income of $5.8 million, up 26%

Revenue for the second quarter ended June 30, 2017, was $28.4 million, compared to $26.1 million for the same quarter in 2016. Net income for the quarter ended June 30, 2017, was $5.8 million, compared to $4.6 million for the quarter ended June 30, 2016. Diluted earnings per share increased to $0.13 for Class A shares and $0.80 for Class B shares for the quarter ended June 30 2017, from $0.11 for Class A shares and $0.64 for Class B shares for the quarter ended June 30, 2016.

Regarding second quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continued to see positive growth in revenue and operating income in the second quarter, bringing our 2017 year-to-date revenue growth rate to 9% and operating income growth rate to 23%, compared to the first half of 2016.”

A listen-only simulcast of National Research Corporation’s 2017 second quarter conference call will be available online at http://edge.media-server.com/m/p/v7vdqgk8 on August 2, 2017, 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 36 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,
	2017			2016			2017			2016

Revenue	$	28,435		$	26,114		$	58,710		$	53,984

Operating expenses:
Direct expenses		11,939		10,734				24,439			22,273
Selling, general and administrative		6,905		7,270				13,591			14,627
Depreciation and amortization		1,139		1,092				2,244			2,060
Total operating expenses		19,983			19,096			40,274			38,960

Operating income		8,452		7,018				18,436			15,024

Other income (expense):
Interest income		15		11				29			22
Interest expense		(23	)	(36		)		(50	)		(121	)
Other, net		27		43				35			118

Total other income (expense)		19		18				14			19

Income before income taxes		8,471		7,036				18,450			15,043

Provision for income taxes		2,719		2,478				6,178			4,978

Net income	$	5,752		$	4,558		$	12,272		$	10,065

Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A	$	0.14		$	0.11		$	0.29		$	0.24
Class B	$	0.82		$	0.65		$	1.75		$	1.44
Diluted Earnings Per Share:
Class A	$	0.13		$	0.11		$	0.28		$	0.24
Class B	$	0.80		$	0.64		$	1.71		$	1.41

Weighted average shares and share equivalents outstanding
Class A - basic		20,752		20,711				20,745			20,711
Class B - basic		3,514		3,508				3,514			3,498
Class A - diluted		21,525		20,992				21,404			21,002
Class B - diluted		3,591		3,565				3,584			3,557

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

	Jun. 30,			Dec. 31,
	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents	$	31,628		$	33,021
Accounts receivable, net		13,138			10,864
Income taxes receivable		1,172			14
Other current assets		5,045			3,166
Total Current Assets		50,983			47,065

Property and equipment, net		12,138			11,806
Goodwill		57,942			57,861
Other, net		3,513			3,892
Total Assets	$	124,576		$	120,624

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:
Accounts payable and accrued expenses	$	3,715		$	3,916
Deferred revenue		16,735			15,497
Accrued compensation		4,076			4,543
Dividends payable		4,218			4,213
Income taxes payable		--			662
Notes payable		2,107			2,683
Total Current Liabilities		30,851			31,514

Non-Current Liabilities		5,895			6,304

Total Liabilities		36,746			37,818

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 25,796,457 in 2017 and 25,656,760 in 2016, outstanding 20,940,790 in 2017 and 20,891,069 in 2016		26			26
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,317,656 in 2017 and 4,308,875 in 2016, outstanding 3,540,244 in 2017 and 3,539,931 in 2016		4			4
Additional paid-in capital		49,620			46,725
Retained earnings		75,343			71,507
Accumulated other comprehensive loss		(2,127	)		(2,626	)
Treasury stock		(35,036	)		(32,830	)
Total Shareholders’ Equity		87,830			82,806
Total Liabilities and Shareholders’ Equity	$	124,576		$	120,624

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

National Research Corporation Announces Second Quarter 2017 Results

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