1245 “Q” Street Lincoln, NE 68508 Phone: 402-475-2525 Fax: 402-475-9061 |
Contact: | Patrick E. Beans | |
Chief Financial Officer | ||
402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
FOURTH QUARTER AND YEAR-END 2009 RESULTS
Growth Rates Shows Material Improvement
LINCOLN, Nebraska (February 9, 2010) — National Research Corporation (NASDAQ:NRCI) today announced results for the fourth quarter and year-end 2009.
· | Quarterly revenue $13.8 million up 14% |
· | Quarterly net income $2.2 million up 18% |
· | Quarterly earnings per share $0.33 up 18% |
· | Year-end revenue $57.7 million; net income $8.5 million; diluted earnings per share $1.26 |
· | Year-to-date growth: revenue up 13%, net income up 14%, diluted earnings per share up 16%, EBITDA up 20% |
Commenting on the fourth quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, “Growth rates improved materially in the fourth quarter which contributed to a more positive year-end than anticipated. Most encouraging was the fact that we registered net new contracts at NRC Picker for the quarter 150% greater than the first three quarters combined.”
Revenue for the quarter ended December 31, 2009, increased 14% to $13.8 million, compared to $12.2 million for the same period in 2008. Net income for the fourth quarter was $2.2 million, or $0.34 basic and $0.33 diluted earnings per share, compared with net income of $1.9 million, or $0.29 basic and $0.28 diluted earnings per share, in the prior year period. Operating income increased 12% to $3.3 million for the quarter ended December 31, 2009, compared to $3.0 million for the same period in 2008.
Revenue for the year ended December 31, 2009, was $57.7 million, compared to $51.0 million for the same period in 2008, an increase of 13%. Net income for the year ended December 31, 2009, increased 14% to $8.5 million, resulting in $1.28 basic and $1.26 diluted earnings per share, up 15% and 16%, respectfully over the same period in 2008.
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NRCI Announces 2009 Fourth Quarter and Year End Results
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February 9, 2010
In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “NRC Picker, which represented 44% of 2009 revenue, materially constrained our consolidated performance for the year. Now, with improving sales, I look forward to positive contributions from that part of our business.”
NATIONAL RESEARCH CORPORATION
Reconciliation of Consolidated Net Earnings to Consolidated EBITDA (Unaudited)
(In thousands)
Year Ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
Net income | $ | 8,491 | $ | 7,445 | ||||
Provision for income taxes | 4,626 | 4,538 | ||||||
Total other (income) expense | 580 | 6 | ||||||
Depreciation and amortization | 3,831 | 2,685 | ||||||
EBITDA | $ | 17,528 | $ | 14,674 |
We define EBITDA as net income excluding provision for income taxes, total other (income) expenses (which is primarily interest expense, interest income and changes in foreign currency exchange rates), depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States. EBITDA, as we calculate it, may not be comparable to EBITDA reported by other companies.
A listen-only simulcast of National Research Corporation’s 2009 fourth quarter and year-end conference call will be available online at www.earnings.com on February 10, 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.
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NRCI Announces 2009 Fourth Quarter and Year End Results
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February 9, 2010
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | $ | 13,842 | $ | 12,189 | $ | 57,692 | $ | 51,013 | ||||||||
Operating expenses: | ||||||||||||||||
Direct expenses | 5,548 | 5,766 | 24,574 | 23,611 | ||||||||||||
Selling, general and administrative | 4,042 | 2,768 | 15,590 | 12,728 | ||||||||||||
Depreciation and amortization | 928 | 682 | 3,831 | 2,685 | ||||||||||||
Total operating expenses | 10,518 | 9,216 | 43,995 | 39,024 | ||||||||||||
Operating income | 3,324 | 2,973 | 13,697 | 11,989 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | — | 9 | 2 | 42 | ||||||||||||
Interest expense | (90 | ) | (21 | ) | (405 | ) | (139 | ) | ||||||||
Other, net | (45 | ) | 82 | (177 | ) | 91 | ||||||||||
Total other income (expense) | (135 | ) | 70 | (580 | ) | (6 | ) | |||||||||
Income before income taxes | 3,189 | 3,043 | 13,117 | 11,983 | ||||||||||||
Provision for income taxes | 951 | 1,148 | 4,626 | 4,538 | ||||||||||||
Net income | $ | 2,238 | $ | 1,895 | $ | 8,491 | $ | 7,445 | ||||||||
Net income per share, basic | $ | 0.34 | $ | 0.29 | $ | 1.28 | $ | 1.11 | ||||||||
Net income per share, diluted | $ | 0.33 | $ | 0.28 | $ | 1.26 | $ | 1.09 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 6,639 | 6,642 | 6,637 | 6,685 | ||||||||||||
Diluted | 6,725 | 6,782 | 6,723 | 6,831 |
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NRCI Announces Fourth Quarter and Year-End 2009 Results
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February 9, 2010
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands)
Dec. 31, | Dec. 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 2,512 | $ | 1,109 | ||||
Accounts receivable, net | 5,214 | 6,531 | ||||||
Income taxes recoverable | 803 | 574 | ||||||
Other current assets | 3,134 | 2,225 | ||||||
Total current assets | 11,663 | 10,439 | ||||||
Net property and equipment | 13,975 | 13,747 | ||||||
Other, net | 46,861 | 47,959 | ||||||
Total Assets | $ | 72,499 | $ | 72,145 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,446 | $ | 2,208 | ||||
Deferred revenue | 11,907 | 12,926 | ||||||
Accrued compensation | 1,926 | 1,375 | ||||||
Notes payable | 816 | 4,581 | ||||||
Total current liabilities | 16,095 | 21,090 | ||||||
Non-current liabilities | 12,233 | 12,457 | ||||||
Total Liabilities | 28,328 | 33,547 | ||||||
Shareholders’ Equity: | ||||||||
Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,018,044 in 2009 and 8,019,922 in 2008; outstanding 6,662,111 in 2009 and 6,667,517 in 2008 | 8 | 8 | ||||||
Additional paid-in capital | 27,871 | 27,217 | ||||||
Retained earnings | 37,905 | 33,677 | ||||||
Accumulated other comprehensive income (loss) | 769 | (6 | ) | |||||
Treasury stock | (22,382 | ) | (22,298 | ) | ||||
Total shareholders’ equity | 44,171 | 38,598 | ||||||
Total liabilities and shareholders’ equity | $ | 72,499 | $ | 72,145 |
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