NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the second quarter 2009.

• Quarterly revenue up 14% to $13.6 million
• Quarterly operating income up 6%
• Quarterly earnings per share $0.24
• Year-to-date growth: revenue up 20%; operating income and basic earnings per share up 21%

Commenting on the second quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, “Our second quarter revenue growth was respectable, while growth in net income was not. That said, year-to-date performance is tracking close to plan. Second quarter net new sales were 15% ahead of first quarter which is a positive indication for the second half of 2009.”

Revenue for the quarter ended June 30, 2009, was $13.6 million, compared to $11.9 million for the same period in 2008. Net income for the second quarter was $1.6 million, or $0.24 basic and diluted earnings per share, compared with net income of $1.6 million, or $0.24 basic and $0.23 diluted earnings per share, in the prior year period. Operating income increased 6% to $2.7 million for the quarter ended June 30, 2009, compared to $2.6 million for the same period in 2008.

Revenue for the first half of 2009 increased 20% to $30.3 million, compared to $25.4 million for the same period in 2008. Net income for the first six months of 2009 increased 19% to $4.3 million, resulting in $0.64 basic and $0.63 diluted earnings per share, up 21% and 22% respectively, over the same period in 2008.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.16 (sixteen cents) per share payable September 30, 2009, to shareholders of record as of the close of business on September 4, 2009.

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. For the third quarter 2009, we anticipate net income back in the 15% range which aligns with our model.”

A listen-only simulcast of National Research Corporation’s 2009 second quarter conference call will be available online at www.earnings.com on August 5, 2009, 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.

   

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)            

Three Months Ended

       

Six Months Ended

June 30,

June 30,

2009

 

2008

2009

 

2008

  Revenue $ 13,594 $ 11,901 $ 30,334 $ 25,355   Operating expenses: Direct expenses 6,304 5,320 13,581 11,247 Selling, general and administrative 3,697 3,348 7,677 6,907 Depreciation and amortization   891   676   2,001   1,342 Total operating expenses   10,892   9,344   23,259   19,496   Operating income 2,702 2,557 7,075 5,859   Other income (expense): Interest income -- 8 1 27 Interest expense (85 ) (53 ) (223 ) (97 ) Other, net   (98 )   (13 )   (57 )   (20 )   Total other income (expense) (183 ) (58 ) (279 ) (90 )   Income before income taxes 2,519 2,499 6,796 5,769 Provision for income taxes   910   918   2,537   2,185   Net income $ 1,609 $ 1,581 $ 4,259 $ 3,584   Net income per share, basic $ 0.24 $ 0.24 $ 0.64 $ 0.53 Net income per share, diluted $ 0.24 $ 0.23 $ 0.63 $ 0.52   Weighted average shares outstanding: Basic

6,637

 

6,637

 

 

6,635 6,728 Diluted

6,734

 

6,793

 

6,720

6,892    

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Condensed Balance Sheets

(Dollars in thousands)                

June 30,

Dec. 31,

2009

2008

ASSETS   Current Assets: Cash and cash equivalents $ 404 $ 1,109 Accounts receivable, net 7,395 6,531 Income taxes recoverable 687 574 Other current assets   2,533   2,225 Total current assets 11,019 10,439   Net property and equipment 14,403 13,747 Other, net   46,842   47,959   Total Assets $ 72,264 $ 72,145   LIABILITIES AND SHAREHOLDERS’ EQUITY   Current Liabilities: Accounts payable and accrued expenses $ 2,122 $ 2,208 Deferred revenue 14,203 12,926 Accrued compensation 1,895 1,375 Notes payable   820   4,581 Total current liabilities 19,040 21,090   Non-current liabilities   11,924   12,457   Total Liabilities   30,964   33,547   Shareholders’ Equity: Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,016,021 in 2009 and 8,019,922 in 2008; outstanding 6,660,517 in 2009 and 6,667,517 in 2008 8 8 Additional paid-in capital 27,605 27,217 Retained earnings 35,805 33,677 Accumulated other comprehensive income (loss) 253 (6 ) Treasury stock   (22,371 )   (22,298 ) Total shareholders’ equity   41,300   38,598 Total liabilities and shareholders’ equity $ 72,264 $ 72,145