Attached files
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| 8-K - NATIONAL RESEARCH CORP | v192368_8-k.htm |
| EX-99.2 - NATIONAL RESEARCH CORP | v192368_ex99-2.htm |
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1245
“Q” Street
Lincoln,
NE 68508
Phone: 402-475-2525
Fax: 402-475-9061
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Contact:
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Patrick
E. Beans
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Chief
Financial Officer
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402-475-2525
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NATIONAL
RESEARCH CORPORATION ANNOUNCES
SECOND
QUARTER 2010 RESULTS
Board of
Directors Declares Third Quarter Dividend
LINCOLN,
Nebraska (August 3, 2010) — National Research Corporation (NASDAQ:NRCI) today
announced results for the second quarter 2010.
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·
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Quarterly
net new contracts up 114% from prior year quarter adding $3.8 million to
total contract value;
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·
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Acquisition
of Outcome Concept Systems, Inc (OCS) adds $7.4 million to total contract
value;
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·
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Illuminate™
launched to capture an estimated $200 million market for discharge
planning.
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Commenting on the second quarter
results, Michael D. Hays, president and chief executive officer of National
Research Corporation, said, “I’m delighted that net new contracts for the
quarter more than doubled from a year ago, largely driven by an NRC Picker
record-breaking sales performance—its second quarter in a row of double-digit
growth in net new contracts. Exciting as well is the launch of
Illuminate, a discharge planning product which minimizes avoidable hospital
readmission for which CMS is broadening financial penalties. This
first-to-market, full-scale programmatic solution is already implemented in
hospitals covering more than 200,000 patient discharges
annually. Today, we also completed the acquisition of OCS, a
Seattle-based health analytics and informatics firm. In my view, this
transaction brings a whole new opportunity to NRC given OCS’s expertise and
systems to benchmark financial, clinical and operational performance of
healthcare providers.”
Revenue for the quarter ended June 30,
2010, was $14.1 million, compared to $13.6 million for the same quarter in
2009. Net income for the quarter ended June 30, 2010, was $1.7
million, or $.25 per basic and diluted share, compared to $1.6 million for the
second quarter 2009, or $.24 per basic and diluted share.
-MORE-
NRCI
Announces Second Quarter 2010 Results
Page
2
August 3,
2010
Revenue for the first half of 2010
increased 4% to $31.5 million, compared to $30.3 million for the same period in
2009. Net income for the first six months of 2010 increased 12% to
$4.8 million, resulting in $0.72 basic and $0.71 diluted earnings per share,
also up 13%, over the same period in 2009.
The Company also announced that its
Board of Directors has declared a regular quarterly cash dividend of $0.19
(nineteen cents) per share payable September 30, 2010, to shareholders of record
as of the close of business on September 3, 2010.
In closing, Patrick E. Beans, chief
financial officer of National Research Corporation, said, “Net income for the
quarter was lower than we desire at 12% of revenue, but understandable given the
Illuminate launch and transaction expenses related to OCS. For the
third quarter 2010, we anticipate net income back in the 15% range which aligns
with our model. In fact, OCS’s software as a service product
portfolio, and Illuminate’s syndicated-based business model should provide for
very attractive margins on that book of business.”
A
listen-only simulcast of National Research Corporation’s 2010 first quarter
conference call will be available online at www.earnings.com on
August 4, 2010, beginning at 11:00 a.m. Eastern time. The online
replay will follow approximately one hour later and continue for 30
days.
National Research Corporation,
headquartered in Lincoln, Nebraska, is a leading provider of performance
measurement, improvement services, and governance education to the healthcare
industry in the United States and Canada.
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.
-MORE-
NRCI
Announces Second Quarter 2010 Results
Page
3
August 3,
2010
NATIONAL
RESEARCH CORPORATION
Unaudited
Consolidated Statements of Operations
(In
thousands, except per share data)
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Three
Months Ended
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Six
Months Ended
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June
30,
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June
30,
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2010
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2009
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2010
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2009
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Revenue
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$ | 14,139 | $ | 13,594 | $ | 31,509 | $ | 30,334 | ||||||||
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Operating
expenses:
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Direct
expenses
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5,877 | 6,114 | 12,333 | 13,242 | ||||||||||||
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Selling,
general and administrative
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4,545 | 3,887 | 9,014 | 8,016 | ||||||||||||
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Depreciation
and amortization
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1,059 | 891 | 2,157 | 2,001 | ||||||||||||
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Total
operating expenses
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11,481 | 10,892 | 23,504 | 23,259 | ||||||||||||
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Operating
income
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2,658 | 2,702 | 8,005 | 7,075 | ||||||||||||
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Other
income (expense), net:
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Interest
income
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2 | - | 3 | 1 | ||||||||||||
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Interest
expense
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(93 | ) | (85 | ) | (191 | ) | (223 | ) | ||||||||
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Other,
net
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49 | (98 | ) | 6 | (57 | ) | ||||||||||
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Total
other income (expense), net
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(42 | ) | (183 | ) | (182 | ) | (279 | ) | ||||||||
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Income
before income taxes
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2,616 | 2,519 | 7,823 | 6,796 | ||||||||||||
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Provision
for income taxes
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956 | 910 | 3,034 | 2,537 | ||||||||||||
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Net
income
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$ | 1,660 | $ | 1,609 | $ | 4,789 | $ | 4,259 | ||||||||
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Net
income per share, basic
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$ | 0.25 | $ | 0.24 | $ | 0.72 | $ | 0.64 | ||||||||
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Net
income per share, diluted
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$ | 0.25 | $ | 0.24 | $ | 0.71 | $ | 0.63 | ||||||||
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Weighted
average shares outstanding:
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Basic
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6,634 | 6,637 | 6,637 | 6,635 | ||||||||||||
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Diluted
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6,732 | 6,734 | 6,724 | 6,720 | ||||||||||||
-MORE-
NRCI
Announces Second Quarter 2010 Results
Page
4
August 3,
2010
NATIONAL
RESEARCH CORPORATION
Unaudited
Consolidated Condensed Balance Sheets
(Dollars
in thousands)
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June
30,
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Dec.
31,
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2010
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2009
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ASSETS
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Current
Assets:
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Cash
and cash equivalents
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$ | 7,236 | $ | 2,512 | ||||
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Accounts
receivable, net
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7,902 | 5,214 | ||||||
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Income
taxes recoverable
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1,325 | 803 | ||||||
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Other
current assets
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3,050 | 3,135 | ||||||
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Total
current assets
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19,513 | 11,664 | ||||||
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Net
property and equipment
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13,031 | 13,975 | ||||||
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Other,
net
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46,280 | 46,860 | ||||||
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Total
Assets
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$ | 78,824 | $ | 72,499 | ||||
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LIABILITIES
AND SHAREHOLDERS’ EQUITY
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Current
Liabilities:
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Accounts
payable and accrued expenses
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$ | 1,730 | $ | 1,446 | ||||
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Deferred
revenue
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15,909 | 11,907 | ||||||
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Accrued
compensation
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2,281 | 1,926 | ||||||
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Notes
payable
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819 | 816 | ||||||
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Total
current liabilities
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20,739 | 16,095 | ||||||
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Non-current
liabilities
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11,717 | 12,233 | ||||||
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Total
Liabilities
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32,456 | 28,328 | ||||||
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Shareholders’
Equity:
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Common
stock, $0.001 par value; 20,000,000 shares authorized; issued 8,029,282
in 2010 and 8,018,044 in 2009; outstanding 6,653,001 in 2010 and 6,662,111
in 2009
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8 | 8 | ||||||
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Additional
paid-in capital
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28,274 | 27,871 | ||||||
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Retained
earnings
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40,165 | 37,905 | ||||||
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Accumulated
other comprehensive income
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766 | 769 | ||||||
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Treasury
stock
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(22,845 | ) | (22,382 | ) | ||||
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Total
shareholders’ equity
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46,368 | 44,171 | ||||||
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Total
liabilities and shareholders’ equity
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$ | 78,824 | $ | 72,499 | ||||
-END-