NRCI National Research Corp. (MM)

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.

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.

    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

   

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