NRCI Announces Third Quarter Results
Page 1
November 7, 2006
Contact: | Patrick E. Beans Chief Financial Officer 402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
THIRD QUARTER RESULTS AND FOURTH QUARTER DIVIDEND
Company Reports Record Revenue and Earnings
LINCOLN, Nebraska (November 7, 2006) — National Research Corporation (NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today announced results for the third quarter and nine months ended September 30, 2006.
• | Quarterly revenues increased by 31% over the third quarter 2005 |
• | Quarterly net new sales were $2.5 million |
• | Quarterly net income was up 15% |
• | Quarterly earnings per share growth equaled 17% |
Revenues for the quarter ended September 30, 2006, were $13.3 million, compared with revenues of $10.1 million for the same period in 2005, an increase of 31%. Net income for the quarter ended September 30, 2006, was $2.3 million, or $0.34 per basic and diluted share, compared with net income of $2.0 million, or $0.29 per basic and diluted share, in the prior year period. Earnings per share for the quarter ended September 30, 2006, were negatively impacted by $0.02 per share as a result of the effect of Statement of Financial Accounting Standards (“SFAS”) No. 123R adopted in the first quarter 2006.
Revenues for the nine months ended September 30, 2006, were $33.5 million compared with revenues of $23.9 million for the same nine-month period of 2005. Net income for the nine months ended September 30, 2006, was $4.9 million, or $0.71 per basic and $0.70 per diluted share, compared with $3.7 million, or $0.52 per basic and diluted share, in the prior-year period. Earnings per share for the nine months ended September 30, 2006, were negatively impacted by $0.06 per share as a result of the effect of the Company’s adoption of SFAS No. 123R.
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NRCI Announces Third Quarter Results
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November 7, 2006
Commenting on the results Patrick E. Beans, chief financial officer of National Research Corporation, remarked, “Achieving record revenues and earnings in the quarter builds upon our solid performance throughout the year and points toward a record 2006 with strong momentum going into 2007.”
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.10 (ten cents) per share, payable December 29, 2006, to shareholders of record as of the close of business on December 8, 2006.
In closing, Michael D. Hays, chief executive officer of National Research Corporation, said, “Our performance in the third quarter represented a balanced contribution from all of our business units, including our recent acquisition, The Governance Institute. This suggests we have an effective, producing platform in place for the coming years.”
A listen-only simulcast of National Research Corporation’s third quarter conference call will be available online atwww.earnings.com on November 8, 2006, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately an hour later and continue for 30 days.
National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of performance measurement and improvement services 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.
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NRCI Announces Third Quarter Results
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November 7, 2006
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2006 | 2005 | 2006 | 2005 | |||||||||||
Revenues | $ | 13,313 | $ | 10,132 | $ | 33,453 | $ | 23,878 | ||||||
Operating expenses: | ||||||||||||||
Direct expenses | 5,761 | 4,018 | 14,841 | 9,840 | ||||||||||
Selling, general and administrative | 2,960 | 2,331 | 9,009 | 6,606 | ||||||||||
Depreciation and amortization | 600 | 456 | 1,570 | 1,334 | ||||||||||
Total operating expenses | 9,321 | 6,805 | 25,420 | 17,780 | ||||||||||
Operating income | 3,992 | 3,327 | 8,033 | 6,098 | ||||||||||
Other income (expense): | ||||||||||||||
Interest income | 18 | 129 | 156 | 369 | ||||||||||
Interest expense | (225 | ) | (101 | ) | (317 | ) | (303 | ) | ||||||
Other, net | 7 | 18 | (17 | ) | (10 | ) | ||||||||
Total other income (expense) | (200 | ) | 46 | (178 | ) | 56 | ||||||||
Income before income taxes | 3,792 | 3,373 | 7,855 | 6,154 | ||||||||||
Provision for income taxes | 1,450 | 1,344 | 2,977 | 2,452 | ||||||||||
Net income | $ | 2,342 | $ | 2,029 | $ | 4,878 | $ | 3,702 | ||||||
Net income per share, basic | $ | 0.34 | $ | 0.29 | $ | 0.71 | $ | 0.52 | ||||||
Net income per share, diluted | $ | 0.34 | $ | 0.29 | $ | 0.70 | $ | 0.52 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 6,845 | 6,961 | 6,836 | 7,077 | ||||||||||
Diluted | 6,986 | 7,056 | 6,951 | 7,152 |
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NRCI Announces Third Quarter Results
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November 7, 2006
NATIONAL RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
(Dollars in thousands)
Sept 30, 2006 | Dec. 31, 2005 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | (Unaudited) | (Audited) | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,387 | $ | 844 | ||||
Short-term investments | 1,243 | 9,452 | ||||||
Accounts receivable, net | 5,906 | 5,495 | ||||||
Other current assets | 3,135 | 2,427 | ||||||
Total current assets | 11,671 | 18,218 | ||||||
Net property and equipment | 11,807 | 11,891 | ||||||
Other, net | 36,787 | 14,566 | ||||||
Total Assets | $ | 60,265 | $ | 44,675 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,287 | $ | 2,007 | ||||
Deferred revenue | 7,513 | 5,434 | ||||||
Accrued compensation | 1,626 | 1,248 | ||||||
Notes payable | 3,001 | 1,471 | ||||||
Income taxes payable | 1,000 | -- | ||||||
Total current liabilities | 14,427 | 10,160 | ||||||
Non-current liabilities | 9,514 | 1,922 | ||||||
Total Liabilities | 23,941 | 12,082 | ||||||
Shareholders’ Equity: | ||||||||
Common stock, $0.001 par value; 20,000,000 shares authorized; | ||||||||
issued 7,827,370 in 2006 and 7,740,571 in 2005; | ||||||||
outstanding 6,889,458 in 2006 and 6,845,571 in 2005 | 8 | 8 | ||||||
Additional paid-in capital | 21,370 | 20,046 | ||||||
Retained earnings | 26,172 | 23,360 | ||||||
Unearned compensation | -- | (433 | ) | |||||
Accumulated other comprehensive income | 472 | 300 | ||||||
Treasury stock | (11,698 | ) | (10,688 | ) | ||||
Total shareholders’ equity | 36,324 | 32,593 | ||||||
Total liabilities and shareholders’ equity | $ | 60,265 | $ | 44,675 | ||||
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