Contact: | Patrick E. Beans Chief Financial Officer 402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
THIRD QUARTER 2007 RESULTS AND FOURTH QUARTER DIVIDEND
Company Reports Record Revenue and Earnings
LINCOLN, Nebraska (November 6, 2007) — National Research Corporation (NASDAQ:NRCI) today announced results for the third quarter ended September 30, 2007.
• | Quarterly revenue increased by 5% |
• | Quarterly net income increased by 7% |
• | Quarterly diluted earnings per share of $0.36 |
• | Quarterly net new contracts of $2.5 million |
Commenting on the third quarter results, Michael D. Hays, chief executive officer of National Research Corporation, said, “Posting record revenue and earnings is a great achievement and we’re always pleased to exceed EPS estimates. However, our revenue growth rate is not at plan given our 20% plus increase in commercial contract value has gone towards replacing government sector revenues. Once that has been worked through, I personally feel our performance will be more rewarding.”
Revenue for the quarter ended September 30, 2007, was $14.0 million, compared to $13.3 million for the same period in 2006. Net income for the quarter ended September 30, 2007, was $2.5 million, or $0.36 per basic and diluted earnings per share, compared with net income of $2.3 million, or $0.34 per basic and diluted earnings per share, in the prior year period.
Revenue for the nine months ended September 30, 2007, increased 14% to $38.1 million, compared to $33.5 million for the same period in 2006. Net income for the nine months ended September 30, 2007, increased 17% to $5.7 million, resulting in $0.84 per basic and $0.82 per diluted earnings per share, up 18% and 17%, respectively, over the same period in 2006.
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NRCI Announces Third Quarter Results
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November 6, 2007
In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “Even with the modest revenue growth in the third quarter 2007, period over period we exceeded our operating and net income targets placing our year-to-date net income of 15% right at model. The continual growth in higher margin subscription-based products is clearly benefiting the Company.”
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.12 (twelve cents) per share payable December 31, 2007, to shareholders of record as of the close of business on December 17, 2007.
A listen-only simulcast of National Research Corporation’s year-end conference call will be available online atwww.earnings.com on November 7, 2007, 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, 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.
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NRCI Announces Third Quarter Results
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November 6, 2007
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2007 | 2006 | 2007 | 2006 | |||||||||||
Revenue | $ | 13,952 | $ | 13,313 | $ | 38,102 | $ | 33,453 | ||||||
Operating expenses: | ||||||||||||||
Direct expenses | 5,930 | 5,761 | 16,744 | 14,841 | ||||||||||
Selling, general and administrative | 3,240 | 2,960 | 9,890 | 9,009 | ||||||||||
Depreciation and amortization | 672 | 600 | 1,922 | 1,570 | ||||||||||
Total operating expenses | 9,842 | 9,321 | 28,556 | 25,420 | ||||||||||
Operating income | 4,110 | 3,992 | 9,546 | 8,033 | ||||||||||
Other income (expense): | ||||||||||||||
Interest income | 32 | 18 | 101 | 156 | ||||||||||
Interest expense | (110 | ) | (225 | ) | (413 | ) | (317 | ) | ||||||
Other, net | 21 | 7 | 88 | (17 | ) | |||||||||
Total other income (expense) | (57 | ) | (200 | ) | (224 | ) | (178 | ) | ||||||
Income before income taxes | 4,053 | 3,792 | 9,322 | 7,855 | ||||||||||
Provision for income taxes | 1,558 | 1,450 | 3,592 | 2,977 | ||||||||||
Net income | $ | 2,495 | $ | 2,342 | $ | 5,730 | $ | 4,878 | ||||||
Net income per share, basic | $ | 0.36 | $ | 0.34 | $ | 0.84 | $ | 0.71 | ||||||
Net income per share, diluted | $ | 0.36 | $ | 0.34 | $ | 0.82 | $ | 0.70 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 6,851 | 6,845 | 6,846 | 6,836 | ||||||||||
Diluted | 7,013 | 6,986 | 6,995 | 6,951 |
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NRCI Announces Third Quarter Results
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November 6, 2007
NATIONAL RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
(Dollars in thousands)
Sept. 30, 2007 | Dec. 31, 2006 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | (Unaudited) | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 2,059 | $ | 876 | ||||
Short-term investments | 497 | 1,110 | ||||||
Accounts receivable, net | 10,136 | 6,734 | ||||||
Income taxes recoverable | -- | 898 | ||||||
Other current assets | 2,425 | 3,379 | ||||||
Total current assets | 15,117 | 12,997 | ||||||
Net property and equipment | 11,523 | 11,716 | ||||||
Other, net | 37,401 | 36,819 | ||||||
Total Assets | $ | 64,041 | $ | 61,532 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,333 | $ | 1,511 | ||||
Deferred revenue | 10,535 | 8,264 | ||||||
Accrued compensation | 1,692 | 1,594 | ||||||
Income taxes payable | 843 | -- | ||||||
Notes payable | 1,036 | 3,110 | ||||||
Total current liabilities | 15,439 | 14,479 | ||||||
Non-current liabilities | 6,988 | 10,303 | ||||||
Total Liabilities | 22,427 | 24,782 | ||||||
Shareholders’ Equity: | ||||||||
Common stock, $0.001 par value; 20,000,000 shares authorized; | ||||||||
issued 7,878,506 in 2007 and 7,837,848 in 2006; | ||||||||
outstanding 6,923,894 in 2007 and 6,890,631 in 2006 | 8 | 8 | ||||||
Additional paid-in capital | 23,078 | 21,820 | ||||||
Retained earnings | 29,726 | 26,488 | ||||||
Accumulated other comprehensive income | 907 | 358 | ||||||
Treasury stock | (12,105 | ) | (11,924 | ) | ||||
Total shareholders’ equity | 41,614 | 36,750 | ||||||
Total liabilities and shareholders’ equity | $ | 64,041 | $ | 61,532 | ||||
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